According to the U.S. Department of Energy, crude inventories fell 2.5 million barrels in the week to July 8, less than analysts’ expectations for a decrease of 3 million barrels.
Distillate stockpiles, which include diesel and heating oil, rose 4.1 million barrels, the largest build since the week ended January 9 and much more than expectations for a 256,000-barrel increase, the EIA said. Gasoline stocks rose unexpectedly by 1.2 million barrels, compared with forecasts for a 432,000 barrel drop.
August Comex Gold futures recovered after an earlier loss, driven higher by a weaker U.S. Dollar, profit-taking in the U.S. equity markets and accommodative monetary policies. The dollar traded lower against the Japanese Yen, Canadian Dollar and Euro, but managed to post gains against other majors like the Australian and New Zealand Dollars and the British Pound. However, as a trade-weighted basket of currencies, the September U.S. Dollar Index broke after it failed for a second day to breakout to the upside.
The USD/JPY posted a choppy, two-sided trade on Wednesday before traders decided to take it lower. Initially, it firmed after the opening, but lost ground after China released a mixed trade balance report. However, the Forex pair held on to losses after stocks began to break off their highs.
Lower demand for higher-risk assets put pressure on the AUD/USD and NZD/USD after several days of gains this week. Technical factors also contributed to the losses as several oscillators and indications reached overbought territory.
The short-covering rally driving the GBP/USD
GBP/USD (GBP/USD)
1.32260.0109(0.83%)
08:47:59 (GMT)
Start trading No Clear Signal
Bid: 1.3224
Ask: 1.3228
Open: 1.3117
High: 1.3274
Low: 1.3105
higher this week came to an end on Wednesday as investors took profits and squared positions ahead of Thursday’s Bank of England monetary policy decision. Earlier in the week, shorts covered aggressively following the announcement of a new U.K. prime minister. This brought some relief to investors because it eliminated a key political obstacle that had been created in late June when the U.K. voted to leave the European Union.
On Wednesday, the Bank of Canada held its benchmark interest rate steady at 0.50%, the same level it’s been at since last summer. In its decision, the central bank said, “The fundamentals remain in place for a pickup in growth” in the economy.
The Canadian economy “grew by 2.4 percent in the first quarter but is estimated to have contracted by 1 percent in the second quarter, pulled down by volatile trade flows, uneven consumer spending, and the Alberta wild fires.
Distillate stockpiles, which include diesel and heating oil, rose 4.1 million barrels, the largest build since the week ended January 9 and much more than expectations for a 256,000-barrel increase, the EIA said. Gasoline stocks rose unexpectedly by 1.2 million barrels, compared with forecasts for a 432,000 barrel drop.
August Comex Gold futures recovered after an earlier loss, driven higher by a weaker U.S. Dollar, profit-taking in the U.S. equity markets and accommodative monetary policies. The dollar traded lower against the Japanese Yen, Canadian Dollar and Euro, but managed to post gains against other majors like the Australian and New Zealand Dollars and the British Pound. However, as a trade-weighted basket of currencies, the September U.S. Dollar Index broke after it failed for a second day to breakout to the upside.
The USD/JPY posted a choppy, two-sided trade on Wednesday before traders decided to take it lower. Initially, it firmed after the opening, but lost ground after China released a mixed trade balance report. However, the Forex pair held on to losses after stocks began to break off their highs.
Lower demand for higher-risk assets put pressure on the AUD/USD and NZD/USD after several days of gains this week. Technical factors also contributed to the losses as several oscillators and indications reached overbought territory.
The short-covering rally driving the GBP/USD
GBP/USD (GBP/USD)
1.32260.0109(0.83%)
08:47:59 (GMT)
Start trading No Clear Signal
Bid: 1.3224
Ask: 1.3228
Open: 1.3117
High: 1.3274
Low: 1.3105
higher this week came to an end on Wednesday as investors took profits and squared positions ahead of Thursday’s Bank of England monetary policy decision. Earlier in the week, shorts covered aggressively following the announcement of a new U.K. prime minister. This brought some relief to investors because it eliminated a key political obstacle that had been created in late June when the U.K. voted to leave the European Union.
On Wednesday, the Bank of Canada held its benchmark interest rate steady at 0.50%, the same level it’s been at since last summer. In its decision, the central bank said, “The fundamentals remain in place for a pickup in growth” in the economy.
The Canadian economy “grew by 2.4 percent in the first quarter but is estimated to have contracted by 1 percent in the second quarter, pulled down by volatile trade flows, uneven consumer spending, and the Alberta wild fires.
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