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...
Oil prices rose as pressure on Russia's oil industry and the escalating conflict in the Middle East intensified. West Texas Intermediate (WTI) crude rose as much as 2% to $64 per barrel after Reuters reported that Russia's Transneft pipeline, which handles more than 80% of the country's oil, had restricted the company's ability to store crude. Ukraine attacked another Russian refinery overnight as Western nations considered new sanctions in an attempt to pressure President Vladimir Putin to the negotiating table. Ukrainian military forces have intensified drone attacks on Russian energy...
Gold surged past $3,700 an ounce for the first time on Tuesday as rising bets on a Federal Reserve rate cut this week fueled a rally fueled by safe-haven demand, central bank buying, and a weaker dollar. Spot gold rose 0.3% to $3,690.59 an ounce, as of 10:49 a.m. ET (1449 GMT), after hitting a record high of $3,702.95 earlier in the session. U.S. gold futures for December delivery rose 0.2% to $3,727.50. "Global growth uncertainty and geopolitical risks continue to keep safe-haven demand high, but gold's rally is largely driven by anticipation of aggressive interest rate cuts from the...
Gold appreciated for the third consecutive day on Tuesday as the US dollar tanked amid hopes of a dovish turn by the Fed on Wednesday. The US Dollar Index has dropped to fresh two-month lows, which buoys the precious metal to fresh record highs right below $3,700. Recent US data has highlighted a sharp deterioration of the labour market while inflation remains moderate. Speculation that the n¡bank might be behind the curve with rate cuts has boosted hopes that the bank will announce a widely expected quarter-point cut on Wednesday and hint at further easing down the road. Source: Fxstreet
Pound Sterling (GBP) gained modestly against the dollar but underperformed the euro as stagnant productivity, soft labor demand, and sticky wage growth underscore the UK's stagflation risk, BBH FX analysts report. Sterling lags euro amid soft UK labor backdrop"GBP/USD edged higher on broad US Dollar (USD) weakness. Pound Sterling (GBP) is underperforming against EUR. The UK July labor market data matched consensus." "The unemployment rate was unchanged for a third straight month at a four-year of 4.7% in July (BOE Q3 projection: 4.8%). Worrisomely, the vacancies-to-unemployment ratio...
EUR/USD remains near the upper end of its three-month trading range, with another test of 1.18 possible today. Despite a recent spike, implied volatility has retreated, underscoring calmer market conditions, Commerzbank's FX analyst Michael Pfister notes. EUR/USD seems to be struggling to break above 1.18"Last week, I discussed the possible factors that could push EUR/USD back above 1.18 in detail here. However, the fact that it feels like we have been trading within a fairly narrow range for the last three months must also be put into perspective. While it is true that EUR/USD seems to be...
Silver steadied around $42.5 per ounce on Tuesday, hovering near 14-year highs as investors positioned for an expected US Federal Reserve rate cut this week. Markets are nearly fully pricing in a 25 basis point reduction on Wednesday, with 67 bps of easing projected by year-end. Expectations have been bolstered by data showing a cooling labor market and subdued inflation. President Donald Trump also pressed Fed Chair Jerome Powell for a larger cut, citing housing market weakness. Elsewhere, central banks in Canada and China are expected to ease policy this week, while those in Japan and the...
The dollar traded near a 2.5-month low against the euro and near a 10-month low against the risk-sensitive Australian dollar on Tuesday as investors increased bets for a Fed rate cut this week and next. The U.S. dollar traded slightly below its lowest level in more than two months against the British pound, with U.S. President Donald Trump renewing his call for aggressive monetary easing. Markets are pricing in a rate cut of at least 25 basis points on Wednesday as a certainty, with a 50 basis point cut even more likely. A total of 67 basis points of cuts are expected over the remainder of...
Oil prices are mixed in the early Asian trade, but may be supported by supply-disruption risks. Ukraine has stepped up attacks on Russia's energy infrastructure, ANZ Research analysts say in a research report. Another drone attack struck Russia's Kinef refinery, which has an annual processing capacity of over 20 million tons, the analysts note. "This follows last week's wave of attacks which Ukraine claimed have struck facilities handling almost half of Russia's seaborne crude exports," the analysts add. Front-month WTI crude oil futures are little changed at $63.32/bbl; front-month Brent...
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....