Author: FX
Russia is planning to fix the differential for its main crude export — urals — to minus $20 from brent. Currently brent is trading at $86 so that would put it at $66.Crucially, $66 is well-above the $60 price cap set by Europe and G7 nations. So far that price cap doesn’t appear to be a problem but it could if/when crude prices rally. The move by Russia may indicate some annoyance at wide differentials to its crude and customers asking for deep discounts. Fixing it, I suspect, is an aim to secure longer-term sales agreements and prices that are…
Lubo Ivanko/iStock Editorial via Getty Images Thomson Reuters (NYSE:TRI) is 3.7% higher Friday – on pace to break a five-session losing streak – after an upgrade to Sector Outperform at Scotiabank. Shares had fallen 2% Thursday in the wake of an earnings report where it beat profit expectations but cut its 2023 revenue forecast. Scotiabank’s reaction to the report is mostly neutral, saying it showed continued momentum in the company’s “big three” segments that led to beating expectations for earnings per share and EBITDA. And while the company trimmed its free cash flow guidance for 2023, that’s related to recent…
Share: GBP/USD briefly dropped below the 1.20 level earlier this week. Economists at Rabobank expect the pair to see further dips below 1.20 in the coming months. EUR/GBP seen at 0.90 around the middle of the year “We expect to see further dips below GBP/USD 1.20 in the coming months.” “While EUR/GBP has dropped back from its recent highs, it remains in an ascending channel, and we retain our forecast for a move to 0.90 around the middle of the year.” “On March 15, Chancellor Hunt is due to present his spring budget. Hunt has provided reassurances to…
EURUSD falls below the support @1.0711.Stay below is bearishThe EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be The EUR/USD is…
Share: Silver has dropped back again this year. But strategists at Commerzbank expect increasing Gold prices to lift Silver too. Supply deficit likely to shrink on Silver market “Global demand is likely to decrease as compared with its record high last year. Growing supply is anticipated at the same time: mining production is expected to reach its highest level since 2016 and the supply of scrap Silver to post the highest level in a decade.” “As these two effects combined will probably mean that the supply deficit this year will not be even half as high as it…
Share: Strategists at Rabobank analyze the path of Brent Crude Oil for the next months. In their view, a slump in prices is unlikely to last. Brent will appreciate and average $90 for Q3 and Q4 2023 “Brent prices could see the $60s very briefly in a financial sell-off caused by an official recession. This is unlikely to last, as we believe that there are multiple levels of support in the $70s and our expectations are that Brent will appreciate and average $90 for Q3 and Q4 2023.” “On the products side, we expect ULSD to average $3.01/gal…
CONSUMER SENTIMENT KEY POINTS:February consumer sentiment climbs to 66.4 from 64.9 previously, topping market expectations of 65.00The improvement in confidence levels suggests that Americans are more optimistic about the economic outlook, a good sign for household spendingElsewhere in the report, one-year inflation expectations rises to 4.2%, while the five-year ahead measure remains unchanged at 3.9% Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter Most Read: US Dollar Price Forecast – DXY Nestles Beneath Dynamic ResistanceA popular gauge of U.S. consumer attitudes extended it recovery in February,…
S&P index erases early declinesThe S&P index has erased earlier declines and trades modestly higher. The index is currently up five points or 0.13% at 4086.68. The high price reached 4090.58. Recall that the swing highs from December stall that 4100.51 and 4100.96. Those levels will be eyed for a short-term bullish clues. Get above and stay above would be more positive for the index.The price dip yesterday and again today took the price of the S&P index below its 100 hour moving average Moving average A moving average is a statistical tool that is used to smooth out short-term…
Share: Emerging markets have continued to lag so far in 2023. But economists at UBS now see a much more favorable backdrop for emerging markets. Emerging markets well-positioned to be early beneficiaries of the three inflection points “Emerging markets are closely linked to the fortunes of the Chinese economy, which should rebound as the country opens up.” “Easing financial conditions and a weaker US Dollar have historically been linked with strong emerging market performance.” “Valuations are appealing on a relative basis and corporate fundamentals are turning the corner.” Source link
Share: The Mexican central bank (Banxico) surprisingly opted to raise its policy rate by 50 bps. The MXN reacted sharply appreciating. However, the Peso could still come under pressure if Banxico does not remain hawkish, economists at Commerzbank report. Banxico maintains pace and sends MXN soaring “Banxico surprised with a 50 bps rate hike to now 11%, sending the MXN soaring.” “Banxico is proving to be an inflation fighter after the departure of central bank member Gerardo Esquivel, who was considered a big dove, which should in principle help the Peso.” “The big question now is where the…