Crude Oil Settles Higher After IEA Raises Demand Forecast

Trading 10 août 2018 Commentaire »

Crude oil prices climbed higher on Friday, lifted by International Energy Agency's forecast that world oil demand will increase by 110,000 barrels a day to 1.5 million barrels next year.

The IEA said in its monthly oil market report that maintaining the world's oil supply will be very challenging, due to fresh U.S. sanctions against Iran.

However, the agency noted that there were risks to the demand forecast from the escalating trade dispute along with any rally in prices caused by supply constraints.

According to reports, China has decided to remove crude oil from its latest tariff list. Meanwhile, Baker Hughes reported today that the number of active U.S. rigs count increased by 10 to 869 for the week. Last week, rig count had dropped by 2.

Crude oil futures for September delivery ended up $0.82, or 1.3%, at $67.63 a barrel. On Thursday, oil futures ended ended down $0.13, or 0.2%, at $66.81 a barrel.

For the week, oil futures shed 1.3%, with concerns about likely supply shortage due to sanctions on Iran and disruptions in Libya and Venezuela.

Concerns that the U.S.-China trade war could hurt global economic growth and result in a drop in demand for crude too contributed to oil's fall in recent sessions.


The material has been provided by InstaForex Company - www.instaforex.com

Treasuries Move Notably Higher Amid Concerns About Turkey

Trading 10 août 2018 Commentaire »

Treasuries showed a strong move to the upside during trading on Friday, extending the upward move seen in the previous session.

Bond prices moved higher early in the session and climbed steadily as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 7.8 basis points to 2.857 percent.

The strength among treasuries came amid concerns about rising tensions between the U.S. and Turkey due to the Turkish detention of U.S. pastor Andrew Brunson.

The Turkish lira has shown a sharp decline to a record low, contributing to considerable weakness in the overseas markets.

In response, Turkish President Recep Erdogan has urged Turks to sell dollars and gold and buy the lira.

"There are various campaigns being carried out. Don't heed them," Erdogan said. "Don't forget, if they have their dollars, we have our people, our God."

President Donald Trump subsequently announced that he has authorized the doubling of steel and aluminum tariffs on Turkey.

"I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!" Trump said in a post on Twitter.

The president added, "Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!"

In U.S. economic news, the Labor Department released a report showing a modest increase in consumer prices in the month of July.

The Labor Department said its consumer price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase in prices matched economist estimates.

Excluding food and energy prices, the core consumer price index also edged up by 0.2 percent in July, matching the increases seen in the two previous months as well as expectations.

Next week's trading may be impacted by reaction to reports on import and export prices, retail sales, industrial production, housing starts, and consumer sentiment.


The material has been provided by InstaForex Company - www.instaforex.com

Canadian Dollar Strengthens After Strong Jobs Data

Trading 10 août 2018 Commentaire »

The Canadian dollar spiked up against its major counterparts in the European session on Friday, as the economy created more jobs than forecast in July, while the jobless rate fell.

Data from Statistics Canada showed that the employment rose by 54,100 jobs in July, following an addition of 31,800 jobs in June. Economists were expecting a job growth of 17,000.

The unemployment rate declined by 0.2 percentage points to 5.8 percent from 6 percent. The rate was forecast to fall to 5.9 percent.

Oil prices edged higher after the International Energy Agency raised its estimate of world oil demand growth next year by 110,000 barrels a day to 1.5 million barrels.

In its monthly oil market report, the IEA said that the new U.S. sanctions against Iran could make maintaining the world's oil supply 'very challenging'.

Crude for September delivery rose $0.70 to $67.51 per barrel.

The loonie showed mixed trading against its major rivals in the Asian session. While it fell against the yen and the greenback, it rose against the euro and the aussie.

The loonie spiked up to 0.9527 against the aussie, a level not seen since June 2016. The loonie is likely to challenge resistance around the 0.94 level.

The Reserve Bank of Australia trimmed its near-term inflation forecast but broadly maintained its growth projections.

In its quarterly Statement on Monetary Policy, the forecasts for domestic output growth were broadly similar to those presented in the May Statement.

Having fallen to more than a 2-week low of 1.3123 against the greenback at 4:15 am ET, the loonie reversed direction and bounced off to 1.3038. If the loonie rises further, 1.28 is likely seen as its next resistance level.

Data from the Labor Department showed that U.S. consumer prices showed a modest increase in the month of July.

The Labor Department said its consumer price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase in prices matched economist estimates.

The loonie firmed to 1.4921 against the euro, its strongest since May 30. On the upside, 1.47 is possibly seen as the next resistance level for the loonie.

The loonie bounced off to 85.05 against the yen, from more than a 2-week low of 84.43 touched at 3:45 am ET. The next likely resistance for the loonie is seen around the 86.00 level.

Data from the Cabinet Office showed that Japan's gross domestic product expanded a seasonally adjusted 0.5 percent on quarter in the second quarter of 2018.

That exceeded expectations for an increase of 0.3 percent following the 0.2 percent loss in the three months prior.

Looking ahead, U.S. monthly budget statement for July is scheduled for release at 2:00 pm ET.


The material has been provided by InstaForex Company - www.instaforex.com

Romania Inflation Eases In July

Trading 10 août 2018 Commentaire »

Romania's consumer price inflation eased in July after remaining stable in the previous month, figures from the National Institute of Statistics showed Friday.

Consumer prices climbed 4.6 percent year-over-year in July, slower than the 5.4 percent increase in June. The measure has been rising since January last year.

Prices of non-food products grew 6.2 percent annually in July and those of food products rose by 3.4 percent.

On a monthly basis, consumer prices decreased 0.5 percent in July.

In a separate report, the statistical office revealed that industrial production advanced a seasonally adjusted 6.7 percent yearly and by 1.6 percent monthly in June.


The material has been provided by InstaForex Company - www.instaforex.com

*Trump Says He Is Doubling Tariffs On Steel & Aluminum 'with Respect To Turkey'

Trading 10 août 2018 Commentaire »

Trump Says He Is Doubling Tariffs On Steel & Aluminum 'with Respect To Turkey'


The material has been provided by InstaForex Company - www.instaforex.com

U.S. Consumer Prices Rise 0.2% In July, In Line With Estimates

Trading 10 août 2018 Commentaire »

Consumer prices in the U.S. showed a modest increase in the month of July, according to a report released by the Labor Department on Friday.

The Labor Department said its consumer price index rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase in prices matched economist estimates.

The index for shelter rose by 0.3 percent in July and accounted for nearly 60 percent of the increase by the consumer price index.

Excluding food and energy prices, the core consumer price index also edged up by 0.2 percent in July, matching the increases seen in the two previous months as well as expectations.

Along with the shelter index, the indexes for used cars and trucks, airline fares, new vehicles, household furnishings and operations, and recreation all increased.

Compared to the same month a year ago, consumer prices in July were up by 2.9 percent, unchanged from the rate of growth seen in June.

The annual rate of growth in core consumer prices accelerated to 2.4 percent in July from 2.3 percent in the previous month. Core prices showed the fastest year-over-year growth since September of 2008.

"With economic growth strong and inflation overshooting, we expect the Fed to continue hiking interest rates once a quarter over the coming 12 months," said Michael Pearce, Senior U.S. Economist at Capital Economics.

On Thursday, the Labor Department released a separate report showing producer prices unexpectedly came in unchanged in the month of July.

The Labor Department said its producer price index was unchanged in July after rising by 0.3 percent in June. Economists had expected producer prices to increase by 0.2 percent.

Excluding food and energy prices, the core producer price index inched up by 0.1 percent in July after climbing by 0.3 percent in the previous month. Core prices had been expected to rise by 0.2 percent.


The material has been provided by InstaForex Company - www.instaforex.com

Sweden Inflation Remains Stable In July

Trading 10 août 2018 Commentaire »

Sweden's consumer price inflation held steady in July, after accelerating in the previous two months, data from Statistics Sweden showed Friday.

Consumer prices climbed 2.1 percent year-over-year in July, the same rate of increase as in June. The expected inflation rate was 2.0 percent.

On a monthly basis, consumer prices increased 0.5 percent from June, when it edged up by 0.2 percent.

The inflation rate according to the CPI with a fixed interest rate was also remained stable at 2.2 percent, in line with expectations. Month-on-month, CPIF went up 0.5 percent.


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Unemployment Rate Declined By 0.2 Percentage Points To 5.8% In July

Trading 10 août 2018 Commentaire »

Canadian Unemployment Rate Declined By 0.2 Percentage Points To 5.8% In July


The material has been provided by InstaForex Company - www.instaforex.com

*Canadian Employment Rose By 54,000 Jobs In July

Trading 10 août 2018 Commentaire »

Canadian Employment Rose By 54,000 Jobs In July


The material has been provided by InstaForex Company - www.instaforex.com

UK Q2 Growth Doubles On Services, Construction

Trading 10 août 2018 Commentaire »

UK economic growth doubled in the second quarter driven by stronger growth in both services and construction sectors, the initial quarterly estimate from the Office for National Statistics showed Friday. Gross domestic product rose 0.4 percent, faster than the 0.2 percent expansion seen in the first quarter. This was also in line with the Bank of England estimate.

On a yearly basis, GDP advanced 1.3 percent versus 1.2 percent growth seen a quarter ago.

"The economy picked up a little in the second quarter with both retail sales and construction helped by the good weather and rebounding from the effects of the snow earlier in the year," Head of National Accounts at ONS, Rob-Kent Smith, said.

The dominant services output expanded 0.5 percent and construction logged a quarterly growth of 0.9 percent. These increases helped to offset a 0.8 percent fall in production.

On the expenditure-side, growth in household consumption strengthened slightly to 0.3 percent, while government spending growth held steady at 0.4 percent. Driven by rise in business investment, gross fixed capital formation climbed 0.8 percent.

The trade deficit widened by GBP 4.7 billion to 0.9 percent of GDP, compared with 0.7 percent in the previous quarter. This reflected a 2 percent fall in the value of exports and a 1 percent rise in the value of imports.

According to the monthly GDP estimate, the economy grew only 0.1 percent in June, slower than the 0.3 percent rise seen in May.

In June, the index of services remained flat in June, while farm output contracted 0.2 percent. At the same time, growth in construction came in at 1.4 percent, but slower than the 2.9 percent increase in May.

Industrial production climbed 0.4 percent month-on-month, reversing a 0.2 percent fall in May. This was the first increase in four months and above the expected growth of 0.3 percent.

On the other hand, manufacturing rose at a slower pace of 0.4 percent after gaining 0.6 percent in May. Economists had forecast a 0.3 percent rise for June.

On a yearly basis, growth in industrial output slowed slightly to 1.1 percent from 1.2 percent in May. At the same time, manufacturing output growth held steady at 1.5 percent.

Economists had forecast industrial output to climb 0.7 percent and manufacturing to rise 1 percent in June.

In June, the visible trade deficit narrowed to GBP 11.38 billion from GBP 12.53 billion in May, a separate report from ONS showed. At the same time, the surplus on services increased to GBP 9.52 billion from GBP 9.38 billion.

As a result, the total trade deficit shrank to GBP 1.86 billion from GBP 3.14 billion in May.


The material has been provided by InstaForex Company - www.instaforex.com