Oil gains ahead of weekly inventory report

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oil

Today’s Economic events

  • BRC shop price index y/y -1.70% vs. -2.0% previously
  • China Caixin services PMI 52.2 vs. 51.4
  • Japan leading indicators 99.80% vs. 99.90%
  • German Industrial Production m/m -0.50% vs. -1.80%
  • Eurozone retail PMI 49.2 vs. 50.1 previously
  • The UK housing equity withdrawal q/q -9.5 billion vs. -9.2 billion

Coming Up

  • Canada Ivey PMI
  • Crude Oil inventories report
  • FOMC member Mester speech
  • FOMC meeting minutes
  • FOMC member Bullard speech

The markets were easing back from the risk off sentiment yesterday as China’s services PMI rose to 52.2 beating forecasts of 51.4 and up from February’s 51.2. Although Asian market closed modestly lower with the Nikkei225 losing 0.11% and the Shanghai Composite losing 0.08%, the overall sentiment in the markets were broadly positive. The Japanese Yen continued to gain strength in today’s trading; the charts show a possible bottom being formed after prices dipped to a low of 110.115 in yesterday’s trading. Prices are currently flat with USDJPY currently up 0.03% at the time of writing, trading at 110.4.

The Australian dollar is also flat at the time of writing as AUDUSD erased the gains after posting a session high above 0.756 but soon slipped back to an intraday low above 0.753. The currency remains well supported above yesterday’s lows near 0.751. The NZDUSD continued to push ahead lower currently down 0.26% with prices trading near session lows at 0.677. The declines came about despite yesterday’s Global Dairy Trade data from New Zealand showing an increase of 2.10% in dairy prices, up from -2.90% declines previously.

In Europe, the markets opened to the German industrial production data for February, which showed a decline of 0.50% better than the expected 1.80% forecasts. January’s data was revised lower to 2.30% from 3.30% previously with the German economy ministry expecting to see a stronger rebound in March. Eurozone retail PMI data came out weaker than the previous month at 49.2. EURUSD was weaker in today’s trading, currently down 0.30%, trading at $1.135 following prices topping out near 1.14 in yesterday’s trading.

[Tweet “WTI Crude Oil prices are currently up 0.36%, trading at $36.65 a barrel. “]

The British Pound continued its declines in today’s trading losing another 0.87%. GBPUSD was seen trading at 1.4019 at the time of writing, trading near a 5-week low. European equity markets were trading modestly higher today with the German DAX gaining 0.13% while the London FTSE100 was up 0.79% at the time of writing.

The NY trading session opened with the markets looking to the Canada Ivey PMI where expectations are for an increase of 54.9 from 53.4 previously. Later in the evening, the US Crude Oil inventories report is due for release with expectations for a weekly build up of 3.1 million barrels, up from the previous week’s 2.3 million barrels. WTI Crude Oil prices are currently up 0.36%, trading at $36.65 a barrel. The remainder of the evening is marked by speeches from Fed members Mester and Bullard including the meeting minutes from the FOMC’s March 16th meeting. Gold prices have turned weaker ahead of the FOMC minutes, currently down over 1.0% erasing yesterday’s gains, to trade at $1218 an ounce.

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John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.

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