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Saturday, 23 November 2019
Crude Oil Prices May Fall as Growth Fears Return, Rate Cuts Pause
Crude Oil Prices May Fall as Growth Fears Return, Rate Cuts Pause
Dollar Gains Against Most Major Currencies
After early weakness, the U.S. dollar gained in strength on Friday, riding on some fairly strong economic data.
A report from the University of Michigan showed a much bigger than expected upward revision to its reading on U.S. consumer sentiment in the month of November as consumers were more optimistic about the future than previously estimated.
The report said the consumer sentiment index for November was upwardly revised to 96.8 from the preliminary reading of 95.7. The revised reading is well above the final October reading of 95.5.
The IHS Markit US Composite PMI rose to a four-month high of 51.9 in November 2019 from 50.9 in the previous month, a preliminary estimate showed. Stronger manufacturing and services sector activity contributed to the growth.
The IHS Markit US Manufacturing PMI rose to 52.2 in November 2019 from 51.3 in the previous month, while the Services PMI rose to 51.6 in November 2019 from 50.6 in the previous month.
The dollar index rose to 98.31 and was last seen at 98.26, up 0.27% from previous close.
Against the Euro, the dollar strengthened to 1.1022 from Thursday's 1.1060.
Euro area private sector grew at a much slower pace in November, indicating spillover effects from manufacturing to the services activity, flash data from IHS Markit showed Friday.
The composite output index fell unexpectedly to 50.3 in November from 50.6 in October. The expected reading was 50.9.
Although a score above 50 indicates expansion, it signaled the second slowest growth across manufacturing and services since the current upturn began in July 2013.
The services Purchasing Managers' Index dropped to 51.5 from 52.2 in the previous month. Economists had forecast a score of 52.4.
Meanwhile, the manufacturing PMI rose to 46.6 from 45.9 a month ago. The score was forecast to drop to 46.4.
The pound sterling was down fairly sharply against the greenback, falling to $1.2835, from $1.2910 on Thursday.
The Japanese Yen was little changed at 108.60 a dollar, after moving between 108.47 and 108.72.
The Aussie was down slightly at 0.6786. Against Swiss franc, the dollar was trading at 0.9971, up 0.4% from previous close.
The loonie edged up after Canadian retail sales data came in line with expectations, but retreated later. The USD-CAD pair was last seen at 1.3299, with the dollar gaining about 0.1%.
Data from the Statistics Canada showed that retail sales fell 0.1% on a seasonally adjusted monthly basis after a revised 0.1% rise in August. The rate matched economist estimates.
Core retail sales excluding motor vehicle and parts dealers rose 0.2% from August, when it fell a revised 0.1%. The reading was forecast to fall by 0.3%.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2146999/
Australian Dollar Looks to US-China Trade Headlines, RBA's Lowe
Australian Dollar Looks to US-China Trade Headlines, RBA's Lowe
Crude Oil Futures Settle Notably Lower
Crude oil prices drifted lower on Friday, with traders taking some profits following recent gains.
Despite recent reports suggesting OPEC and allies might consider extending output cuts until the middle of next year and also discuss increasing the quantum of reduction, traders appeared somewhat keen on trimming down positions, looking for clear signals.
Concerns over the delay in the U.S. and China closing in on an interim trade deal, and worries about energy demand outlook due to global economic slowdown weighed on oil prices.
West Texas Intermediate Crude oil futures for January ended down $0.81, or about 1.4%, at $57.77 a barrel.
On Thursday, WTI Crude oil futures for January ended up $1.57, or 2.8%, at $58.58 a barrel, the highest settlement in about two months for a front-month contract.
Brent Crude oil futures ended down $0.40 at $63.57 a barrel.
According to a report released by Baker Hughes Friday afternoon, drillers cut three oil rigs in the week to November 22, bringing the total count down to 671, the lowest since April 2017.
The oil rig count has now declined for a record 11 months in a row with independent exploration and production companies cutting spending on new drilling.
In its latest report, the Organization for Economic Cooperation and Development (OECD) trimmed its outlook for the global economy, saying the world was headed for its weakest economic growth since the 2007-2008 financial crisis.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2146998/
Treasuries Close Nearly Flat Following Lackluster Session
After initially moving to the upside, treasuries show a lack of direction over the course of the trading session on Friday.
Bond prices spent most of the day lingering near the unchanged line before closing roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 1.774 percent.
The choppy trading on the day came as traders seemed reluctant to make significant moves amid lingering uncertainty about a U.S.-China trade deal.
Recent reports have suggested the signing of a phase one trade deal could be delayed until next year as U.S. and Chinese officials struggle to reach agreement on core issues.
The next round of U.S. tariffs on Chinese goods is set to take effect on December 15th, potentially complicating efforts to reach an agreement.
In remarks at Bloomberg's New Economy Forum in Beijing, Chinese President Xi Jinping said China wants to work toward a phase one agreement on the basis of mutual respect and equality but will fight back if necessary.
Xi met with former U.S. Secretary of State Henry Kissinger at the forum, reportedly describing U.S.-China relations as being at a critical juncture
"China and the United States should step up communication on strategic concerns to avoid misjudgment and enhance mutual understanding," Xi told Kissinger, according to China's state-run Xinhua News Agency.
Meanwhile, President Donald Trump said in an interview on Fox News this morning that a trade agreement with China is "very close" and that the two economic superpowers have a "very good chance to make a deal."
Traders largely shrugged off a report from the University of Michigan showing a much bigger than expected upward revision to its reading on U.S. consumer sentiment in the month of November.
The report said the consumer sentiment index for November was upwardly revised to 96.8 from the preliminary reading of 95.7. The revised reading is well above the final October reading of 95.5.
Next week's trading may be somewhat subdued due to the Thanksgiving Day holiday on Thursday, although traders are likely to keep an eye on reports on new home sales, consumer confidence, durable goods orders, and personal income and spending.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2146997/