Oil Futures Settle Higher Again

Crude oil prices climbed higher on Thursday, extending gains from the previous session, as optimism about higher demand from China outweighed concerns about inflation and interest rate hikes.

West Texas Intermediate Crude oil futures for April settled at $78.16 a barrel, gaining $0.47 or about 0.6%.

Brent crude futures were up $0.31 or 0.37% at $84.62 a barrel a little while ago.

Data showing a faster than expected increase in consumer prices in some major Eurpean countries raised expectations of interest rate hikes by the ECB.

The minutes from ECB's latest meeting also suggested that the central bank will continue to raise interest rates in the coming months.

"China's improving demand outlook could still take WTI crude towards the $80 level, but it might struggle to do so if this dollar rebound shows no signs of slowing down," says Edward Moya, Senior Market Analyst, OANDA.

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

source http://www.mt5.com/forex_news/quickview/2208118/

South Korea Manufacturing PMI Unchanged At 48.5 In February - S&P Global

The manufacturing sector in South Korea continued to contract in February, and at a steady pace, the latest survey from S&P Global revealed on Thursday with a manufacturing PMI score of 48.5.

That was unchanged from the January reading, and it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

Order book volumes declined for the eighth month in a row in February, although the rate of reduction eased to the softest for three months. Subdued demand reportedly stemmed from weak domestic and global economic conditions and inflationary pressures, often caused by exchange rate weakness.

As such, the latter was cited as a key driving force behind the latest drop in demand from overseas. New export orders have now fallen consistently for a year, though the rate of contraction was the softest since last November.

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

source http://www.mt5.com/forex_news/quickview/2208057/

*South Korea Retail Sales -2.1% On Month In January

South Korea Retail Sales -2.1% On Month In January

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

source http://www.mt5.com/forex_news/quickview/2208049/

Japanese Yen Flatlines Despite US Dollar Weakness. Will Treasury Yields Lift USD/JPY?

The Japanese Yen has steadied to start the week while the US Dollar has slipped as monetary policy disparity between the BoJ and the Fed perseveres. Higher USD/JPY? Via DailyFX - Market News https://ift.tt/DZxKFMt

Dollar Drifts Lower Against Major Counterparts

The U.S. dollar drifted lower against most of its major counterparts on Wednesday, weighed down by upbeat Chinese factory data.

Bank of England Governor Andrew Bailey said in his speech at Brunswick Group's Cost of Living Conference in London that further increase in the interest rate might be required to achieve the UK inflation target on a sustainable basis.

ECB's Joachim Nagel said today that the central bank might need significant rate hikes beyond March to combat high inflation.

China's official manufacturing Purchasing Managers' Index rose to 52.6 from 50.1 in January, smashing expectations after the country abruptly lifted COVID-19 curbs.

China's non-manufacturing activity also grew at a faster pace in February and the private sector index from Caixin/S&P showed factory activity rising for the first time in seven months, helping ease investor fears over rising interest rates.

A report from the Institute for Supply Management showed the manufacturing PMI inched up to 47.7 in February from 47.4 in January, a reading below 50 still indicates a contraction. Economists had expected the index to edge up to 48.0.

The report also showed the prices index jumped to 51.3 in February from 44.5 in January, indicating raw materials prices increased after decreasing for four consecutive months.

The dollar index dropped to a low of 104.09 earlier in the day, was at 104.39 a little while ago, down nearly 0.5% from the previous close.

Against the Euro, the dollar weakened to 1.0670 from 1.0578.

The dollar is down slightly against Pound Sterling at 1.2028. Against the Japanese currency, the dollar is little changed at 136.21 yen.

Against the Aussie, the dollar is trading at 0.6760, down nearly 0.5% from the previous close.

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

source http://www.mt5.com/forex_news/quickview/2208045/

*New Zealand Terms Of Trade +1.8% On Quarter In Q4

New Zealand Terms Of Trade +1.8% On Quarter In Q4

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

source http://www.mt5.com/forex_news/quickview/2208044/

Ten-Year Yield Jumps To Three-Month Closing High

After moving modestly higher over the two previous sessions, treasuries showed a significant move back to the downside during trading on Wednesday.

Bond prices came under pressure in morning trading and remained firmly negative throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, advanced 7.8 basis points to 3.994 percent.

With the increase on the day, the ten-year yield ended the session at its highest closing level in well over three months.

Treasuries moved to the downside following the release of a report from the Institute for Supply Management on U.S. manufacturing activity in the month of February.

While the ISM said its manufacturing PMI inched up to 47.7 in February from 47.4 in January, a reading below 50 still indicates a contraction. Economists had expected the index to edge up to 48.0.

The report also showed the prices index jumped to 51.3 in February from 44.5 in January, indicating raw materials prices increased after decreasing for four consecutive months.

"Overall, there is little sign that the recent improvements in manufacturing activity in other economies, particularly China, is being reflected in the U.S.," said Andrew Hunter, Deputy Chief U.S. Economist at Capital Economics. "The ISM index is also still loosely consistent, on past form, with negative GDP growth."

The notable rebound by the prices index added to recent concerns about inflation and the outlook for interest rates.

Trading on Thursday may be impacted by reaction to a report on weekly jobless claims, which could provide additional clues about tightness in the labor market.

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

source http://www.mt5.com/forex_news/quickview/2208042/