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Oil price hits 2-year high after OPEC

 

 

“If you owe the bank $100, that’s your problem.  If you owe the bank $100 million, that’s the bank’s problem.” - Old

Proverb

 


FOREX

 


China Makes First Foreign Reserve Ratio Hike in Over a Decade

 


China has upped the required reserve ratio (RRR) for foreign currency deposits from 5 percent to 7 percent, according to a statement from the People’s Bank of China (PBoC), effective from June 15.

 


This marks the first foreign exchange RRR hike since May 2007 after the yuan experienced appreciation following reforms in 2005. The Chinese yuan has been significantly strengthening as of late, rising against the dollar to a three-year high to break the 6.40 USDCNY level last week. (Finews.asia)

 


Dollar edges up on manufacturing data after initial softness

 


The Institute for Supply Management (ISM) said its index of U.S. manufacturing activity rose in May as pent-up demand amid a reopening economy boosted orders.

 


The dollar index crept up 0.35% to 89.822, but was well off Friday’s high of 90.447, when a measure of U.S. inflation closely watched by the Federal Reserve posted its biggest annual rise since 1992. (Reuters)

 


STOCKS

 


Wall St ends little changed; energy gains, health sags

 


Wall Street’s main indexes ended little changed on Tuesday, with gains in energy and financial shares countering declines in healthcare, as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation. (Reuters)

 


COMMODITIES

 


Oil jumps to two-year high as OPEC and allies reconfirm gradual production increase

 


OPEC and its oil-producing allies, known as OPEC+, will boost output in July, in accordance with the group’s April decision to return 2.1 million barrels per day to the market between May and July. 

 


International benchmark Brent crude futures traded at $71.17 a barrel on Tuesday, up around 2.7%, while West Texas Intermediate crude futures stood at $68.65, for a gain of more than 3% and the contract’s highest level in more than two years. Oil prices have climbed more than 30% this year. (CNBC) 

 


Gold prices end with a modest loss, hold above the $1,900 mark

 


Gold futures ended lower on Tuesday, but held ground above the key $1,900 mark, as U.S. Treasury yields edged up following upbeat U.S. manufacturing data. (Market Watch)

 


MORE HEADLINES

 


•    Still in the throes of Covid, India emerges as one of Asia’s top stock markets in May
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•    ‘Oversold’ Bitcoin Down to $35K, ETH Drops to $2.5K
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ANALYSIS

 


AUD/NZD set to plummet towards the December 2020 low at 1.0412 – Commerzbank

 


“AUD/NZD’s sudden drop has practically taken it back to the March low at 1.0626, a slip through which will have the February trough at 1.0540 in its sights. Further down the December low can be spotted at 1.0412.” 
“In view of the current decline, we changed our forecast to a bearish one and will retain it while the cross remains below the May highs at 1.0810/24 on a daily chart closing basis.” (FX Street)

 


CHART

 


Brent crude oil – Daily Candlesticks

 


  
Source: GKFX Metatrader 4 

BRENT SPOT tested a 2-year high after successfully closing above resistance from a series of highs just under the $70 level. - Prepared by Trading Writers*

 


CALENDAR

 


*Times in GMT

 


 
Source: FX Street Economic Calendar

 

Source

 

https://www.fxstreet.com/economic-calendar
https://www.cnbc.com/2021/06/01/oil-opec-meeting-in-focus-amid-concerns-over-iranian-oil-supply.html
https://www.reuters.com/article/us-usa-stocks/wall-st-ends-little-changed-energy-gains-health-sags-idUSKCN2DD3KZ
https://www.reuters.com/article/global-forex/forex-dollar-edges-up-on-manufacturing-data-after-initial-softness-idUSL2N2NJ229
https://www.marketwatch.com/story/gold-prices-edge-higher-to-kick-off-june-11622548707
https://www.finews.asia/finance/34602-china-makes-first-foreign-reserve-ratio-hike-in-over-a-decade
https://www.forexlive.com/centralbank/!/feds-quarles-i-dont-think-we-should-use-our-tools-to-address-supply-chain-20210601
https://www.coindesk.com/market-wrap-oversold-bitcoin-down-35k-eth-drops-2-5k
https://finance.yahoo.com/news/zoom-q1-earnings-2022-162231464.html
https://finance.yahoo.com/m/fe9db726-2567-3c68-98d4-5a32e3807bf8/%E2%80%98we-are-struggling-to-find.html
 

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