oil

Oil price drop becomes a major theme for markets

Posted on December 15, 2015 at 10:36 am GMT

As the oil price broke to fresh 7-year lows this week and even threatened to make fresh 11-year lows, many other markets took note. First of all the rapidly dropping oil price was also interpreted as a sign of a weak global economy; something that weighed on risk sentiment. Other non-energy commodities are also making fresh lows such as industrial metals, while an index of commodity prices – the CRB index – is at its lowest since 2009. In the [..]

Asian Session – Oil steadies but dollar under pressure ahead of inflation data and FOMC

Posted on December 15, 2015 at 8:58 am GMT

Oil prices rebounded yesterday from 2009 levels after US oil futures hit a fresh intra-day low of $34.52 a barrel. US futures were slightly below earlier highs at $36.08 in today’s Asian session, while Brent crude was trading at $37.82 a barrel. Oil prices are expected to remain under pressure as a mild winter is likely to hit demand further in the coming months. The Australian dollar received a boost from the RBA’s latest meeting minutes, which said that low [..]

European Session – Dollar gives back gains as US yields decline ahead of Fed; euro above 1.10

Posted on December 14, 2015 at 3:40 pm GMT

Safe havens were boosted on subdued risk appetite ahead of the Federal Reserve policy meeting on Wednesday. The yen gained and gold bounced back late in the European session. Crude oil continued its decline and briefly dipped below $35 a barrel. The dollar gave back earlier gains against major currencies as US Treasury bond yields declined. The euro traded up to $1.1036, while the dollar slid versus the yen to 120.63 after reversing from 121.34 yen. A Fed rate hike [..]

FX Daily Outlook| 12-14-15

Posted on December 14, 2015 at 9:06 am GMT

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Asian Session – Oil extends slide to 7-year lows; Positive China and Japan data fail to lift markets

Posted on December 14, 2015 at 8:28 am GMT

Crude oil prices fell to fresh near 7-year lows on Friday after the International Energy Agency forecast weaker demand for oil in 2016. In its latest monthly report, the IEA said that demand for oil next year will fall to 1.2 million barrels a day from this year’s 1.8 million barrels a day. US crude oil futures hit their lowest since February 2009 of $35.15 on Friday and were only marginally firmer today at $35.50. Industrial production in China rose [..]

European Session – Oil at lowest since 2008, loonie tumbles

Posted on December 11, 2015 at 3:50 pm GMT

Weak commodity prices continued to be the main theme in the markets today as well as a weakening yuan. Oil declined to the lowest level since 2008 to reach $36.05 a barrel on oversupply concerns as oil production continues to increase. The Canadian dollar which is linked to oil prices, weakened further today to reach a fresh eleven-year low against the greenback. USDCAD rose steadily throughout the day to a high of 1.3713. The South African rand plummeted to a [..]

Asian Session – Dollar and euro steady but oil glut pushes loonie to new 11-year low

Posted on December 11, 2015 at 9:00 am GMT

The US dollar was flat on Friday following yesterday’s partial rebound from recent lows. The greenback briefly topped 122 yen before slipping down to 121.91 yen in late Asian session. Risk aversion has helped the Japanese currency make gains against the dollar and is set to end the week 1% higher. Meanwhile, the euro was steady against the dollar and the pound at 1.0945 and 0.7228 respectively. The single currency’s recent bullishness lost some steam on Thursday after ECB Governing [..]

European Session – Oil drops sub-$37, dragging loonie to fresh 11-year lows

Posted on December 8, 2015 at 3:36 pm GMT

Risk aversion dominated the currency markets on Tuesday, buoying the yen and the euro. Meanwhile, commodity prices were in focus as crude oil fell to levels last seen in early 2009. As a result, oil-tied currencies remained under pressure, such as the Canadian dollar and the Norwegian crown. A broadly stronger greenback did not help these currencies. Oil fell to $36.63, the earliest since February 2009. The dollar rose to a fresh eleven-year high against the loonie, hitting 1.3621. Canada [..]

Asian Session – Oil prices stabilize but still bearish; Yen firmer after Japan GDP revised higher

Posted on December 8, 2015 at 8:08 am GMT

Crude oil prices were slightly firmer on Tuesday after slumping to fresh near 7-year lows yesterday. US crude oil futures were up at $37.70 after hitting a low of $37.50 on Monday. The outlook for oil prices has become increasingly bearish after OPEC failed to agree on a production ceiling at a meeting last week. However, higher imports from China have helped prices stabilize on Tuesday. Data out today showed China imported more commodities in November from a month earlier. [..]

European Session – Canadian dollar pressured to new 11-year low as oil prices drop

Posted on December 7, 2015 at 3:20 pm GMT

The worst performers on Monday were the Canadian dollar and crude oil, while the US dollar strengthened across the board after Friday’s solid jobs report. The nonfarm payrolls data bolstered investor confidence in the US economy and raised expectations for a rate hike at the Fed policy meeting next week. Policy divergence still remains between the Fed and the ECB even though the latter disappointed markets last week and was not as aggressive in delivering stimulus measures. As a result, [..]

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