Huge Decline in US Crude Oil Inventory Added Fuel to Price Rally
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks fell -2.89 mmb to 1267 mmb in the week ended December 27. Crude oil inventory slumped -11.46 mmb (consensus: -3.29 mmb). Inventory declined in 4 out of 5 PADDs....
Risk Aversion Continues on US-Iran Conflicts
Risk aversion is the dominant theme today, with deep selloff in global equity markets. Treasury yields took a dive while gold and oil prices surge. Sentiments are rocked by abrupt escalation in Middle East tensions, after US military had killed Qasem Solemaini, the head of Iran's Islamic Revolutionary Guard...
Oil Prices Jump after Airstrike in Iran. Impacts should be Short-Lived
Re-escalation of geopolitical tensions in Iran lifted oil prices. The front-month WTI crude oil contract, rallying more than +3%, spiked to 63.4 at one point. The corresponding Brent contract, gaining about +3.5%, jumped to a 7- month high of 69.16 earlier today. It was reported that a top Iranian...
Middle East Tensions Push Yen, Franc and Oil Higher
Yen and Swiss Franc jump sharply as markets turned from strong risk appetite to risk aversion. Despite record closes in US stocks, Asian markets tumble on fresh geopolitical tensions in Middle East. Oil prices also skyrocket together with gold, while treasury yields tumble. In the currency markets, Australian and...
Dollar Attempting Recovery Together With Yen, Market in Consolidation Mode
Dollar started the first trading day of 2020 with mild recovery, as the year end selloff seems to have passed the climax temporarily. Though, Yen is currently even stronger. On the other hand, European majors are generally lower for the moment. But overall, the forex markets appear to be...
Trade War Continues to Direct Outlook of USDCNY in 2020
As in last year, Chinese Yuan will remain directed by the US-China trade war in 2020. Although China’s economy continues to struggle and PBOC’s monetary policy is tilted to the accommodative side, CNY should stabilize against USD if trade negotiations are smooth. Elevated inflation should keep PBOC cautious in...
Dollar Soft in Holiday Trading, Sterling Extending Rebound
Dollar remains soft in mixed, quiet market in Asia. Trading is subdued, on holiday mood, with no reaction to Chinese data, nor the surprised PBoC RRR cut. Calendar is light today too, with PMI manufacturing final reading from, Eurozone, UK and US. There is little change in the weekly...
Dollar Ends the Year With Accelerated Selloff
Dollar selloff accelerates further as 2019 is heading to an end. The signing of US-China trade deal phase one should now be confirmed, but that provides little support to the greenback. Instead, Dollar dives through some key technical levels. As for today, Sterling is the strongest one, followed by...
USDJPY to Firm in 1H20, Could Weaken as Uncertainties Resurface Later in the Year
US-China trade war, Brexit drama and concerns over global economic slowdown have resulted in a volatile FX market for most of 2019. Risk aversion raised demand for safe-haven assets, such as Japanese yen. USDJPY declined to as low as 105 in mid-August, recording a loss of about 4% in...
AUD/USD Breaks 0.7 as Dollar Selloff Extends
Dollar's selloff continues on the last trading day of the year, while markets are rather mixed elsewhere. Australian Dollar is the strongest one for now, but it's followed by Japanese Yen. Meanwhile, New Zealand Dollar is the weakest one, followed by Euro and Sterling. Trading will likely become more...
CFTC Commitments of Traders – Crude Oil’s Increase in NET LENGTH Moderated as Price Entered Fourth-Week Rally
According to the CFTC Commitments of Traders report for the week ended December 24. NET LENGTH for crude oil futures gained +13 700 contracts to 550 077 for the week. Speculative long positions added +13 189 contracts while shorts dropped -511 contracts. For refined oil products, NET LENGTH for...
CFTC Commitments of Traders – British Pound Futures Positions Returned to NET LENGTH for First Time since April
As suggested in the CFTC Commitments of Traders report in the week ended December 24. NET LENGTH in USD Index gained +1 535 contracts to 13 231. Speculative long positions added +990 contracts and short positions dropped -545 contracts. Concerning European currencies, NET SHORT for EUR futures rose +7...
Dollar Stays Weak as Focus Turns to Trade, Swiss Franc Firm
Dollar remains the worst performing one today as focuses turned from geopolitical tensions to trade. Euro is following as the second weakest as earlier rally reverses. On the other hand, buying in New Zealand Dollar picks up, followed by Swiss Franc. Sterling is also firm as the third strongest...
Dollar Broadly Lower as Geopolitics Dominates Headlines
Dollar trades generally lower as markets started another holiday shortened week quietly. With an empty calendar in Asia, focuses were mainly on geo-political news, which weren't very much market moving. For now, commodity currencies are the next weakest following the greenback. Yen and Swiss Franc are the mildly stronger...
Dollar Selloff Accelerates, Sterling Staging a Comeback
Dollar's selloff continues today and is accelerating. Solid risk appetite isn't a friend of the greenback this time, nor the Yen which is the second weakest. Sterling is staging a strong rebound as it seems that recent pull back has completed. Commodity currencies are indeed mixed despite persistent strength...
Aussie and Kiwi Strong as Stocks Extended Record Runs
Commodity currencies are extending this week's rallies on strong risk appetite, with US stocks continuing record runs. Solid gains are also seen in oil price and gold. New Zealand and Australian Dollars are set to end as the strongest ones for the week. On the other hand, Yen and...
Sterling Recovers in Quiet Trading, Oil and Gold Strengthen
Trading in the forex markets is generally quiet in Asian session. Sterling's broad based recovery suggests that last week's steep pull back could have completed. Yen crosses are also mildly firmer on optimism over US-China trade deal. These two developments would be the focuses for the rest of the...
Sterling Suffers Renewed Selling, Canadian Lower on GDP
Sterling is trading as the weakest one for today as it suffers renewed selling ahead of holidays. Canadian Dollar is currently the second weakest, weighed down by unexpected contraction in October GDP. Meanwhile New Zealand and Australian Dollars are the strongest ones, lifted by China's move to lower import...
Markets in Holiday Mood, USD/CAD to Decide Next Direction
Australian and New Zealand Dollar strengthen mildly in Asia today. But markets remain quiet overall, very much in holiday mood. Dollar and Canada are the weaker ones. US President Donald Trump's tweet late Friday indicated that US-China trade deal is still on the right track. China also announced to...
CFTC Commitments of Traders – Net Length on USD Index Futures Halved on Improved Risk Appetite
As suggested in the CFTC Commitments of Traders report in the week ended December 17. NET LENGTH in USD Index declined -10 565 contracts to 11 696. Speculative long positions fell -7 706 contracts and short positions gained +2 859 contracts. Concerning European currencies, NET SHORT for EUR futures...