![]() Saudi Arabia said, not surprisingly, that it would extend its unilateral 1mb/d production into August, while Russia said it would reduce oil exports and production by 500kb/d in August. Crude oil initially popped only to fall back after US ISM manufacturing dropped further into contraction. Instead, the market continues to focus on macro-economic developments, especially the continued inversion of the US yield, reaching a two-decade high, pointing to an incoming recession. Saudi Arabia and Russia’s attempt to boost prices fell flat on Monday with time spreads not pointing to any tightness at this time. Crude oil: reverses the post Saudi-cut gains on ISM disappointment Taking the AUDUSD back toward 0.6650 after it teased higher before the meeting. The RBA this morning decided to keep rate unchanged, but kept the door open for further tightening (more below). USDJPY stayed above 144 with threat of a coordinated intervention. Still, the weak ISM print wasn’t enough to change expectations for Fed hike in July (85% chance), which keeps the focus on labor market data from JOLTs and June Nonfarm Payrolls this week. The US dollar chopped around without convictions, bottoming out yesterday after the release of a weak ISM Manufacturing survey (more below). The VIX Index remain below 14 and the US 10-year yield remains bid but still below 3.9%. S&P 500 futures managed to extend their recent gains yesterday getting closer to the 4,500 level again underscoring the strong sentiment in equities betting on no recession and inflation will eventually come closer to the policy target. ![]() What is our trading focus? US equities (US500.I and USNAS100.I): Cash markets are closed due to Independence Day holiday ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |