Crude Oil Declines Sharply, Settles At 7-week Low

Trading 08 août 2018 Commentaire »

Crude oil prices declined sharply on Wednesday, registering the steepest single session slide in over three weeks, as escalating U.S.-China trade dispute raised concerns about the outlook for global economic growth and demand for oil.

Meanwhile, official U.S. data showed a smaller than expected drop in U.S. crude stockpiles last week.

Crude oil futures for September ended down $2.23, or 3.2%, at $66.94 a barrel, a seven-week low. Meanwhile, Brent crude fell nearly 3.3% to $72.22 a barrel.

Data released by the Energy Information Administration revealed U.S. crude stockpiles fell by 1.351 million barrels for the week ended August 3, as against a forecast for a drop of over 3 million barrels.

According to the report, crude production was down 100,000 barrels per day to 10.8 million barrel per day, during the week under review. Meanwhile, gasoline stocks rose by 2.9 million barrels, compared with expectations for a 1.7 million barrel drop.

According to a report released by the American Petroleum Institute on Tuesday, U.S. crude inventories dropped by 6.02 million barrels last week, much more than a 3 million barrels fall predicted by a survey by Bloomberg.


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Treasuries Close Roughly Flat Following Choppy Trading Day

Trading 08 août 2018 Commentaire »

After seeing significant weakness in the previous session, treasuries showed a lack of direction over the course of the trading day on Wednesday.

Bond prices spent the day bouncing back and forth across the unchanged line before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slipped by less than a basis point to 2.971 percent.

The choppy trading came following the Chinese Ministry of Commerce's announcement of 25 percent tariff on $16 billion worth of U.S. goods.

The goods being targeted by China include large passenger cars and motorcycles as well as various fuels and fiber optical cables.

The announcement by China came after the U.S. finalized a list of approximately $16 billion worth of Chinese imports that will be subject to a 25 percent tariff.

The second tranche of tariffs, which are due to take effect on August 23rd, follows the first tranche of tariffs on approximately $34 billion of Chinese imports that went into effect on July 6th.

Traders seemed reluctant to make any significant moves amid another quiet day on the U.S. economic front.

Meanwhile, the Treasury Department sold $26 billion worth of ten-year notes, attracting slightly below average demand.

The ten-year note auction drew a high yield of 2.960 percent and a bid-to-cover ratio of 2.55, while the ten previous ten-year note auctions had an average bid-to-cover ratio of 2.62.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

On Thursday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $18 billion worth of thirty-year bonds.

Trading on Thursday may also be impacted by reaction to reports on weekly jobless claims and producer price inflation.


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Dollar Trading Mixed As Investors Await Data

Trading 08 août 2018 Commentaire »

The dollar is turning in a mixed performance against its major rivals Wednesday afternoon. The continue lack of U.S. economic data is keeping some investors on the sidelines. Traders can look forward to the release of the producer price index, weekly jobless claims, and wholesale trade Thursday morning.

The dollar climbed to a high of $1.1573 against the Euro Wednesday, but has since retreated to around $1.1615.

France's economic growth is set to improve in the third quarter, survey data from Bank of France showed Wednesday. Gross domestic product is forecast to expand 0.4 percent in the third quarter, compared to 0.2 percent growth seen in the second quarter.

The buck rose to an 11-month high of $1.2853 against the pound sterling Wednesday, but has since eased back to around $1.2890.

The greenback reached an early high of Y111.438 against the Japanese Yen Wednesday, but has since dropped to around Y110.965.

Overall bank lending in July was up 2.0 percent on year in July, the Bank of Japan said on Wednesday - coming in at 526.621 trillion yen. That follows the 2.2 percent gain in June.

Japan had a current account surplus of 1.175 trillion yen in June, the Ministry of Finance said on Wednesday. That was shy of expectations for 1.222 trillion yen and down from 1.938 trillion yen in May.

A measure of peoples' assessment of the Japanese economy weakened more-than-expected in July to the lowest level in nearly two years, survey figures from the Cabinet Office showed Wednesday.

The current index of Economy Watchers' survey dropped to 46.6 in July from 48.1 in June. The index was forecast to fall to 47.8.


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Gold Edges Higher As Dollar Retreats

Trading 08 août 2018 Commentaire »

Gold prices edged higher on Wednesday, gaining for a second straight day as the dollar weakened slightly against major currencies.

Traders chose to pick up the yellow metal after from government bond yields fell by about 0.5%. The dollar index declined by 0.1%.

Gold futures for December ended up $2.70, or 0.2%, at $1,221 an ounce. On Tuesday, gold futures ended up $0.30, or less than 0.1%, at $1218.30 an ounce.

However, it was not a smooth sail for the yellow metal today, as the greenback held its gains early on in the session after a Federal Reserve official spoke about the need for gradual rate hikes.

With the Fed most likely to hike interest rates twice this year, and announce two more hikes in the coming year, the outlook for gold remains a bit uncertain, at least for now.

Silver futures for September settled at $15.432 an ounce.


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Ten-Year Note Auction Attracts Slightly Below Average Demand

Trading 08 août 2018 Commentaire »

Following yesterday's auction of $34 billion worth of three-year notes, the Treasury Department sold $26 billion worth of ten-year notes on Wednesday, attracting slightly below average demand.

The ten-year note auction drew a high yield of 2.960 percent and a bid-to-cover ratio of 2.55.

The Treasury sold $22 billion worth of ten-year notes last month, drawing a high yield of 2.859 percent and a bid-to-cover ratio of 2.57.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.62.

On Thursday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $18 billion worth of thirty-year bonds.


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U.S. Dollar Climbs Against Majors

Trading 08 août 2018 Commentaire »

The U.S. dollar advanced against its major opponents in early New York deals on Wednesday.

The greenback recovered to 111.19 against the yen, from an 8-day low of 110.84 hit at 3:15 am ET.

The greenback strengthened to a 4-day high of 0.9971 against the franc and more than 11-month high of 1.2854 against the pound, reversing from its early lows of 0.9938 and 1.2960, respectively.

Reversing from an early 6-day low of 1.1628 against the euro, the greenback rose to 1.1573.

Against the loonie and the kiwi, the greenback climbed to a 2-week high of 1.3120 and a 5-day high of 0.6723, from its early lows of 1.3049 and 0.6763, respectively.

The greenback edged up to 0.7383 against the aussie, off its early low of 0.7434.

If the greenback rises further, it may find resistance around 113.00 against the yen, 1.01 against the franc, 1.27 against the pound, 1.14 against the euro, 1.32 against the loonie, 0.66 against the kiwi and 0.72 against the aussie.


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*U.S. Dollar Hits 5-day High Of 0.6723 Against NZ Dollar

Trading 08 août 2018 Commentaire »

U.S. Dollar Hits 5-day High Of 0.6723 Against NZ Dollar


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*U.S. Dollar Strengthens To 0.7383 Against Australian Dollar

Trading 08 août 2018 Commentaire »

U.S. Dollar Strengthens To 0.7383 Against Australian Dollar


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*U.S. Dollar Climbs To 2-week High Of 1.3120 Against Canadian Dollar

Trading 08 août 2018 Commentaire »

U.S. Dollar Climbs To 2-week High Of 1.3120 Against Canadian Dollar


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*U.S. Dollar Advances Further To 1.2854 Against Pound

Trading 08 août 2018 Commentaire »

U.S. Dollar Advances Further To 1.2854 Against Pound


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