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Oil prices ease on possible Iran oil exports, rising interest rates

“Great men are not born great, they grow great.” – Vito Corleone 

 

 

HEADLINES

 

 

  • Sterling rises 0.5% as dollar takes a breather
  • Gold rises as dollar dips, Jackson Hole meet on radar
  • Oil prices ease on possible Iran oil exports, rising interest rates
  • S&P 500 rises as Wall Street seeks cues from the Federal Reserve at Jackson Hole
  • Nasdaq rallies, fueled by Nvidia and Amazon
  • AUD/USD: Australia/US terms of trade still supporting the aussie – SocGen
  • GBPJPY Near Term: Downside favored

 

 

Sterling rises 0.5% as dollar takes a breather

 

 

Sterling recouped some losses against the dollar on Thursday but was still languishing near a 2-1/2 year low ahead of upcoming speeches by Bank of England and Federal Reserve officials that could determine the near term outlook for the currency.

The Kansas City Federal Reserve's Jackson Hole Symposium kicks off on Thursday, with BoE Governor Andrew Bailey scheduled to join Fed Chair Jerome Powell and other central bankers at the three-day event.

By 0924 GMT, sterling was up 0.5% at $1.1844 as the rally in the greenback has taken a breather following a run which saw the dollar index surge towards a two-decade high earlier in the week.

 

 

COMMODITIES

 

 

Gold rises as dollar dips, Jackson Hole meet on radar

 

 

Gold prices gained for a third straight session on Thursday, helped by a softer dollar, as investors looked ahead to the Jackson Hole economic symposium for cues on inflation and the U.S. Federal Reserve's rate path.

Spot gold rose 0.5% to $1,759.89 per ounce by 1225 GMT, its highest since Aug. 18. U.S. gold futures rose 0.7% to $1,773.30.

The economic symposium starts on Thursday and of particular interest is Fed Chair Jerome Powell's speech on Friday.

 

 

ENERGY

 

 

Oil prices ease on possible Iran oil exports, rising interest rates

 

 

Oil prices eased on Thursday in volatile trade as investors braced for the possible return to global markets of sanctioned Iranian oil exports and on worries that rising U.S. interest rates would weaken fuel demand.

The prospect that the OPEC+ producer group could curb oil supplies limited the decline in oil prices.

Brent crude lost 2 cents to trade at $101.19 a barrel by 1:16 p.m. EDT (1741 GMT). U.S. West Texas Intermediate crude fell 35 cents to $94.56 a barrel.

 

 

 

STOCKS

 

 

S&P 500 rises as Wall Street seeks cues from the Federal Reserve at Jackson Hole

 

 

The S&P 500 rose Thursday as traders searched for clues out of the Federal Reserve’s annual Jackson Hole symposium.

The broader market index gained 0.73%, and the Nasdaq Composite advanced 1.09%. The Dow Jones Industrial Average gained 93 points, or 0.28%.

Materials, communication services and financials outperformed in the S&P 500. Investors pivoted away from consumer staples and utilities.

Snowflake jumped 20% after posting a beat on revenue. Salesforce fell more than 5% after the company provided a disappointing forecast for fiscal 2023.

 

 

Nasdaq rallies, fueled by Nvidia and Amazon

 

 

The Nasdaq rallied on Thursday, lifted by gains in Nvidia and other technology-related stocks as investors focused on the Federal Reserve's Jackson Hole conference for clues about the central bank's policy outlook.

Fed Chair Jerome Powell is due to give a speech on Friday that investors will dissect for indications of how aggressively the Fed may move to raise interest rates as it battles decades-high inflation.

The yield on the closely watched 10-year Treasury note faded after recently hitting a two-month high. Declining interest rates tend to benefit technology stocks trading at high valuations.

 

 

ANALYSIS

 

 

AUD/USD: Australia/US terms of trade still supporting the aussie – SocGen 

 

 

“We warned at the end of July that August is often a tough month for AUD, and a good month for the dollar. In the event, AUD is only marginally weaker against the dollar than it was at the end of July, and it has done better than the yen (which is unusual for the time of year). However, our desire to get long AUD for the Autumn/|Winter is intact and AUD/USD is still below 0.70.”

“Australia’s terms of trade out-performance vs the US persists. The more the Chinese authorities do to stabilize the economy with fiscal measures, and the less they use a weaker currency to help, the better for the AUD.” 

“We’re long-term bulls, vs the USD, but also against the European currencies.”

 

 

CHART

 

 

GBPJPY Near Term: Downside favored

 

 

Technical View: Short position below 162.05. Target 160.3. Conversely, break above 162.05, to open 162.68.

Comments: The pair is expected to resume descend after correction.

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar


Footnotes
https://www.reuters.com/markets/europe/sterling-rises-05-dollar-takes-breather-2022-08-25/
https://www.reuters.com/artiSterling rises 0.5% as dollar takes a breather | Reuterscle/global-precious/precious-gold-rises-as-dollar-dips-jackson-hole-meet-on-radar-idUSL4N30129E
https://www.reuters.com/business/energy/oil-prices-rise-possible-opec-supply-cuts-2022-08-25/
https://www.cnbc.com/2022/08/24/us-stock-futures-flat-after-dow-sp-500-break-three-day-slide-.html
https://www.reuters.com/markets/europe/futures-rise-investors-await-data-jackson-hole-2022-08-25/
https://www.fxstreet.com/news/aud-usd-australia-us-terms-of-trade-still-supporting-the-aussie-socgen-202208251208
https://www.fxstreet.com/news/aud-usd-australia-us-terms-of-trade-still-supporting-the-aussie-socgen-202208251208
 

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