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Oil falls on weak economic data, offshore oil restart

 

 

“Everything you’ve ever wanted is on the other side of fear.” — George Addair 

 

 

HEADLINES

 

  • Sterling falls vs dollar as focus turns to UK data
  • Precious metals fall as dollar firms, gold hits 1-week low
  • Oil falls on weak economic data, offshore oil restart
  • Growth stocks lift Wall Street out of slowdown worries
  • Bitcoin tops $25,000 for the first time since June before slipping
  • GBPUSD Near Term: Downside favored

 

 

Sterling falls vs dollar as focus turns to UK data

 

The British pound fell on Monday against a broadly stronger dollar at the start of a week where traders and the Bank of England (BoE) will get the latest insight into the strength of the labour market and price pressures.

Focus is on jobs data on Tuesday and inflation figures on Wednesday, which could give a hint on whether the BoE opts for a second consecutive 50 basis point rate hike at its September meeting.

Headline CPI is expected to have jumped to 9.8% in July.

 

 

COMMODITIES

 

Precious metals fall as dollar firms, gold hits 1-week low

 

Gold fell over 1% to its lowest in a week on Monday amid sharp declines across precious metals due to a stronger dollar, with concerns over further rate hikes by the U.S. Federal Reserve adding to pressure on bullion.

Spot gold slid 1.2% to $1,780.99 per ounce by 1:44 p.m. ET (1744 GMT) having hit its lowest since Aug. 8 earlier in the session. U.S. gold futures settled nearly 1% lower at $1,798.10.

The dollar index rose 0.8%, making gold and other commodities priced in the greenback more expensive for overseas buyers.

Gold and silver prices are also lower on demand concerns after weak economic data from China, said Jim Wyckoff, senior analyst at Kitco Metals in a note.

 

 

ENERGY

 

Oil falls on weak economic data, offshore oil restart

 

Oil prices fell by more than $5 a barrel on Monday after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand.

Brent crude futures fell $3.88, or 4%, to $94.27 a barrel by 12:34 p.m. EDT (1634 GMT) after settling 1.5% lower on Friday.

U.S. West Texas Intermediate crude was down $3.68, or 4%, at $88.41 after dropping 2.4% in the previous session.

 

 

STOCKS

 

Growth stocks lift Wall Street out of slowdown worries

 

Wall Street's main indexes gained in choppy mid-day trading on Monday as a jump in megacap growth and technology stocks powered a recovery from early losses on slowdown worries after China's weak economic data.

As U.S. Treasury yields pulled back, high-growth companies, whose valuations are sensitive to rising bond yields, gained. Tesla (TSLA.O) added 3%, while Alphabet (GOOGL.O) and Microsoft Corp (MSFT.O) gained 0.3% each, lifting the Nasdaq (.IXIC).

U.S.-listed shares of China's e-commerce giant Alibaba Group Holding Ltd slipped 0.6%, while those of internet firm Baidu Inc fell 0.8%.

 

Bitcoin tops $25,000 for the first time since June before slipping

 

Bitcoin briefly topped $25,000 to hit its highest level in June before falling sharply as the cryptocurrency struggles to make any significant move higher.

The world’s largest digital coin popped above $25,000 late on Sunday for the first time since mid-June, according to CoinDesk data. It was flat on Monday at $24,120.61.

Cryptocurrencies moved higher in the last month or so following a rise in U.S. stocks. Digital currencies like bitcoin have been relatively correlated to the movement in stock markets, in particular the tech-heavy Nasdaq, which was itself up around 12% in the last month.

 

 

CHART

 

GBPUSD Near Term: Downside favored

 

Technical View: Short position below 1.2125. Target 1.205. Conversely, break above 1.2125, to open 1.215.

Comments: The pair remains under pressure. Further weakness favored.

 

 

Source: Trading Central 

 

 

CALENDAR

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


 

SOURCES

 

https://www.reuters.com/business/sterling-falls-vs-dollar-focus-turns-uk-data-2022-08-15/
https://www.reuters.com/article/global-precious/precious-precious-metals-fall-as-dollar-firms-gold-hits-1-week-low-idUSL4N2ZR2YI
https://www.reuters.com/markets/commodities/oil-prices-ease-aramco-says-ready-boost-crude-output-2022-08-15/
https://www.reuters.com/markets/europe/futures-fall-weak-china-data-sparks-slowdown-fears-2022-08-15/
https://www.cnbc.com/2022/08/15/bitcoin-tops-25000-for-the-first-time-since-june-before-slipping.html