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Tuesday, 31 January 2017

Oil in the red on a background of the US production growth

Oil prices fell during morning trading on Tuesday amid rising of drilling activity in the US.
By 6.27 GMT, futures for Brent oil fell by 0.11 percent to $55.17 per barrel.
Futures for WTI US crude at the same time traded at a mark of $52.49, 0.27 percent lower than the previous close.
North Sea oil fell from January's peak by more than 5.6 per cent, WTI - around 3 per cent.
The number of drilling rigs in the United States rose for the week ended 27 January, by 15 units to 566 showed Friday data of oilfield services company Baker Hughes. This is the highest value since November 2015.
Analysts believe that the increase in drilling activity and, as a consequence, production in the US can neutralize the effect of OPEC agreements and non-OPEC countries to cut production.
Brent futures for March delivery today traded at a premium above $2.7 per barrel for WTI, reflecting the balance of alignment between supply and demand on the world market due to OPEC's pact and the excess of the market in US crude because of the continuing growth in the number of drilling rigs.

The dollar fell after Trump fired Attorney General

The dollar has fallen in price on Tuesday during the Asian trading session, after yesterday the US president Donald Trump fired the Acting Attorney General Sally Yates, who ordered the Ministry of Justice lawyers not to embed Trump's ban on immigration, and the Bank of Japan left policy unchanged, as expected, but raised its forecast about growth.
Trump has appointed Dana Boente, Attorney for the Eastern District of Virginia, to the position of Yates, the White House press secretary Sean Spicer wrote on Twitter.
USD/JPY was trading at 113.56, down by 0.18%, while AUD/USD rose by 0.13% to 0.7565. The US Dollar Index, which shows the strength of the dollar against the trade-weighted basket of six major currencies, fell by 0.08% to 100.34.


Thursday, 26 January 2017

Dow Jones ran over the barrier of 20 000

On Wednesday, Dow Jones Industrial Average crossed and closed above the psychological level at 20,000 for the first time, while the S&P 500 and Nasdaq Composite also went to record levels after the disclosure of upbeat corporate earnings of giants such as Boeing Co.
Dow Jones Industrial Average surged 0.8% to a price of 20,068.51 as Boeing Co. and Caterpillar Inc. contributed to solid gains.
S&P 500 recorded a growth of 0.8 percent to a record price of 2 298.37, eight of 11 major sectors finished with increases. Financial and industrial shares led the winners, while telecommunications and real estate were among the laggards.
Nasdaq Composite ended with a rise of 1% to a price of 5 656.34 points. Since the beginning of the year until now, Nasdaq surpasses other indexes, gaining 5.1 percent.

Wednesday, 25 January 2017

UOB sees range for the yen

USD/JPY consolidates and this will continue over the next 1-3 weeks, according to currency strategists at UOB Group.
While the couple is moving to the top of last Friday at 115.45, it is not expected to rise above that level, analysts say. The dollar reached a peak of 115.61, but quickly fell from the top, reaching a minimum, they added.
At the same time, positive expectations weakened slightly, but it is too early to expect a sustained rebound. The bank switched to a neutral stance and expressed the view that the recovery of the US dollar may move to 115.45/50, but it quickly came back.
Inability to break up is not surprising, so that the bank continued to maintain a neutral position and expect the dollar to trade in a wide range.

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Tuesday, 24 January 2017

Scotiabank doesn't believe in the further rise in EUR/USD

Yesterday the EUR/USD managed to break firmly above 1.07 dollars, which held back the growth of the pair last week. However, analysts of the bank in no hurry to move into the camp of the bulls since, in their opinion, the dynamics of the couple reflects only the adjustment of the positioning of market participants, rather than a fundamental change in the outlook for the US currency.
Mario Draghi's speech last week clearly wore a soft character, while the Federal Reserve expressed growing confidence in the stability of economic growth.
The differential in yields on short-term US and European bonds narrowed somewhat, but remained in the range of the last few weeks, so the prospects for further growth of the single currency seems questionable, say analysts. They remain bearish in terms of the couple and believe that current levels do not correspond to fundamentals.

The Nikkei fell due Trump policy

Japanese stocks fell on Tuesday, as the protectionist stance of US President Donald Trump on trade has excited investors, while the bonds of the banks showed the worst dynamics due to falling profitability of US and global government bonds.
Nikkei fell by 0.6 percent to 18.787,99 points, the broader Topix index slowed by 0.6 percent, ending trading at 1.506,33 points.
Banking shares have lost 2.3 percent, showing the worst dynamics among the sub-indices on the Tokyo Stock Exchange. Shares of exporters also declined due to the strengthening of the yen, which is close to a two-month peaks.