Busy week for the US Dollar begins
Oil prices stemmed last week’s losses to hold above $64 a barrel due to tardy supply recovery in the U.S. after hurricane Katrina, but gains were limited by signs that the growth in demand is slowing.
The IEA, revised downwards its forecast for world oil demand growth this year by 250,000 bpd to 1.35 million bdp, as soaring oil prices were expected to undermine consumption. U.S. light crude oil rose 9 cents to $64.17 a barrel by 0607 GMT, this after shedding 41 cents on Friday when prices fell for the fourth time in five sessions.
Almost 60 percent of oil and gas production from the Gulf of Mexico, the source from the U.S oil production, remained shut on Friday.
The Yen climbed to a two-week high against the euro overnight after Prime Minister Junichiro Koizumi’s party won a landslide victory in the Japanese election, Koizumi’s liberal democratic party netted 296 of the possible 480-seat lower house of parliament in Sundays general election, this is the first time it has won a majority in the chamber for 15 years.
However fresh from the election victory Koizumi totally ruled out staying in office beyond next September.
On Friday we saw the U.S. import prices rising by a slightly larger than expected 1.3 percent in August, Wall Street had forecast an inflation of 1.2 percent. Over the last 12 months, import prices have risen 7.6 percent, reflecting the 42.5 percent increase in the cost of petroleum.
Britain’s trade deficit with the rest of the world widened a more than expected 5.076 billion pounds in July. The figures look slightly negative represent a structural bear trend for sterling.
The foreign exchange market seems to have forgotten about current account issues but with the U.S. current account data due next week, we could see this come back as a market factor.
Finally we also have two pieces of economic data being published in the UK today, producer prices are expected to show input costs rising at 13.4 percent while growth in output producer prices is expected to be almost unchanged at 3.1 percent as the squeeze on manufacturers from high oil prices will also be clear.
We will today also see the release of ODPM house prices for July which is expected to drop following the recent trend.
Going forward this week the market will be watching closely as there is a wealth of inflation data released. Out of the U.S, producer prices (Tuesday) retail sales and industrial production, (Wednesday), CPI & Philly Fed (Thursday) U.S current account & Michigan Sentiment (Friday). From the UK, CPI (Tuesday) and retail sales (Thursday).
The IEA, revised downwards its forecast for world oil demand growth this year by 250,000 bpd to 1.35 million bdp, as soaring oil prices were expected to undermine consumption. U.S. light crude oil rose 9 cents to $64.17 a barrel by 0607 GMT, this after shedding 41 cents on Friday when prices fell for the fourth time in five sessions.
Almost 60 percent of oil and gas production from the Gulf of Mexico, the source from the U.S oil production, remained shut on Friday.
The Yen climbed to a two-week high against the euro overnight after Prime Minister Junichiro Koizumi’s party won a landslide victory in the Japanese election, Koizumi’s liberal democratic party netted 296 of the possible 480-seat lower house of parliament in Sundays general election, this is the first time it has won a majority in the chamber for 15 years.
However fresh from the election victory Koizumi totally ruled out staying in office beyond next September.
On Friday we saw the U.S. import prices rising by a slightly larger than expected 1.3 percent in August, Wall Street had forecast an inflation of 1.2 percent. Over the last 12 months, import prices have risen 7.6 percent, reflecting the 42.5 percent increase in the cost of petroleum.
Britain’s trade deficit with the rest of the world widened a more than expected 5.076 billion pounds in July. The figures look slightly negative represent a structural bear trend for sterling.
The foreign exchange market seems to have forgotten about current account issues but with the U.S. current account data due next week, we could see this come back as a market factor.
Finally we also have two pieces of economic data being published in the UK today, producer prices are expected to show input costs rising at 13.4 percent while growth in output producer prices is expected to be almost unchanged at 3.1 percent as the squeeze on manufacturers from high oil prices will also be clear.
We will today also see the release of ODPM house prices for July which is expected to drop following the recent trend.
Going forward this week the market will be watching closely as there is a wealth of inflation data released. Out of the U.S, producer prices (Tuesday) retail sales and industrial production, (Wednesday), CPI & Philly Fed (Thursday) U.S current account & Michigan Sentiment (Friday). From the UK, CPI (Tuesday) and retail sales (Thursday).
posted by Drs Search @ 10:15 AM
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