Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more "noise" than signals of a short-term surplus. As of 3:50 PM WIB, Brent was at $69.60/barrel (+0.29%) and WTI was at $64.83/barrel (+0.31%). The gains were moderate, but enough to keep prices near the psychological $70 level for Brent. From a geopolitical perspective, market focus is on the potential for escalation in the Middle East. Recent reports...
Gold Futures Rise as Markets Await US CPI Data Gold futures rose 0.3% to $2,725.60 a troy ounce ahead of key US economic data. Investors are positioning themselves ahead of the release of Consumer Price Index data on Wednesday, ANZ Research analysts said in a note. The figures are expected to confirm the Federal Reserve's decision on a December interest rate cut, ANZ said. While markets are pricing in about a 90% chance of a rate cut, signs from the CPI data that shake that belief could be a drag on non-yielding bullion. The precious metal is also supported by safe-haven demand amid...
The dollar strengthened against European currencies on Wednesday ahead of a highly anticipated reading on U.S. inflation, also boosted by a Reuters report that China is considering allowing a weaker currency next year, which has caused the yuan and other Asian currencies to weaken The euro was last down 0.18% at $1.0508, a day before a European Central Bank meeting, and the pound fell 0.16% to $1.2752 as traders awaited U.S. CPI data, due at 1330 GMT. Economists expect headline and core consumer prices to rise 0.3% in November from previous increases of 0.2% and 0.3%,...
Gold fluctuated around $2,690 per ounce on Wednesday, halting a two-day rally, as investors repositioned ahead of key US inflation data due later in the day. This data is crucial, as it could either strengthen or weaken the likelihood of a third Federal Reserve rate cut next week. A rate cut would support gold by lowering the opportunity cost of holding non-yielding assets. Despite the pause, gold remained near two-week highs, underpinned by expectations of loose monetary policies from other major central banks and increased demand for safe-haven assets. The ECB, SNB, and BoC are all...
Silver (XAG/USD) prices extended its gains for the third straight session, trading around $32.00 during Asian hours on Wednesday. The demand outlook for precious metals, including Silver, in the world's largest raw material consumer has improved following news of potential economic stimulus from China. The Politburo announced plans to adopt a "moderately loose" monetary policy and a "more proactive" approach to fiscal stimulus next year, marking a shift from the more cautious tone of the past decade. Silver prices are getting support from the increasing odds of the US Federal Reserve (Fed)...
The dollar index held steady around 106.3 on Wednesday, after three straight days of gains, as investors braced for a crucial US inflation report that could have a significant impact on Federal Reserve policy. A higher-than-expected inflation reading could delay the Fed's plans to reduce borrowing costs, potentially supporting the US dollar. That said, markets are currently pricing in an 86% chance of a 25 basis point rate cut by the Fed later this month, although the outlook for 2025 remains highly uncertain. Traders are also eyeing interest rate decisions from the Bank of Canada and the...
The Australian Dollar (AUD) hovers against the US Dollar (USD) on Wednesday after experiencing losses in the previous session. The AUD/USD pair faced challenges, driven by the broadly stronger US dollar (USD). Traders now focus on the release of crucial US November Consumer Price Index (CPI) data, which are expected to be released later in the North American session. The US CPI inflation is estimated to rise to 2.7% YoY in November from 2.6% in October. Meanwhile, the core CPI, excluding Food & Energy, is expected to increase 3.3% YoY. Any indications of stalled progress could...
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.20 on Wednesday. The WTI price remains on the defensive amid a surprise climb in crude inventories and weak demand outlooks, particularly in China. However, the escalating geopolitical tensions in the Middle East might cap the downside for the WTI price. WTI prices edges lower after disappointing China's international trade data on Tuesday. China's exports rose 6.7% YoY in November, while Imports fell by 3.9% YoY during the same period. Both the readings came below the market consensus. Additionally, China...
EUR/USD shed close to 0.2% on Tuesday, chalking in a third straight declining trading day and testing down into the 1.0500 handle as the Euro's near-term bullish recovery fizzles out. Fiber is backsliding into a cautious stance ahead of a key US Consumer Price Index (CPI) inflation print due on Wednesday, with another rate call from the European Central Bank (ECB) just around the corner on Thursday. Wednesday's CPI inflation print, which serves as one of the last key data releases before the Federal Reserve's (Fed) last policy meeting in 2024. Signs that progress on inflation has stalled...
Gold rises in the early Asian trade. There's a broad commodities uptrend, driven by macro uncertainty, a weaker dollar, and persistent demand for "hard" assets, says Fawad Razaqzada, market analyst...
Oil extended declines after OPEC+ agreed to a bigger-than-expected production increase next month, raising concerns about oversupply just as US tariffs fan fears about the demand outlook.
Brent...
The Japanese Yen (JPY) weakened against its US counterpart and reversed part of Friday's recovery from the lowest level since July 23 following Bank of Japan (BOJ) Governor Kazuo Ueda's remarks....