Crude Oil Futures Tumble, Producers Meet To Discuss Compliance Levels

Crude oil prices declines on Monday, reversing lower after having closed higher in two previous sessions. The commodity was under pressure due partly to the fact that investors took profit after a sharp jump in price last Friday while a meeting between OPEC and non-OPEC members contributed to providing some downside.

U.S. West Texas Intermediate crude futures dropped nearly 1.9% to trade at $47.26 a barrel on the New York Mercantile Exchange in North American trading session on Monday. The Organization of the Petroleum Exporting Countries (OPEC) was due to hold a technical meeting with non-cartel members in Vienna to discuss compliance levels with the cartel’s production cut deal.

According to the International Energy Agency’s latest monthly report, OPEC compliance with the agreement fell to 75% in July – the lowest level since the beginning of this year. As stated by a recent report from OPEC, the cartel’s crude production increased last month due to an unexpected rise in production in Libya and Nigeria, two member countries were exempt from the compliance deal.

Trade suggestion

Sell Stop at 47.26, Take profit at 46.00, Stop loss at 47.70

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Jackson Hole Summit In The Spotlight, U.K. Q2 GDP Data Awaited

U.S. shares closed lower on Friday. The Dow Jones Industrial Average dropped 0.35 percent, to close at 21,674.51 and to end the week 0.8 percent lower. The S&P 500 and the Nasdaq Composite lost 0.18 percent and 0.09 percent after the close on Friday. For the week, the S&P 500 shed 0.7 percent while the Nasdaq fell 0.6 percent.

While doubts about U.S. President Donald Trump’s ability to deliver his economic agenda are growing, terrorist attack in Barcelona on Thursday, which left 13 people dead and more than 100 injured, contributed to shake investors’ confidence.

U.S. President Donald Trump on Thursday did not only decry the removal of pro-slavery Civil War Confederacy monuments in Charlottesville, Virginia, but also unleashed attacks on two Republican U.S. senators, Jeff Flake and Lindsey Graham.

The dollar was hit hard as a spate of unfortunate events mounted concerns over Trump’s ability to work with lawmakers in his own party to win passage of his stimulus plans, such as tax cuts and infrastructure spending.

In the week ahead, investors will pay attention to an annual meeting of top central bankers and economists hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming. The meeting is set to take place from Thursday to Saturday and is expected to provide fresh policy signals from the world’s most powerful central banks as Fed chair Yellen and ECB Governor Mario Draghi are due to deliver speeches.

U.S. housing data will be in the spotlight as the Commerce Department is to publish a report on new home sales for July on Wednesday. The report is expected to show an advance of 0.5% to 610,000, following a gain of 0.8% in June.

After that, the National Association of Realtors is to release data on existing home sales for July on Thursday. Analysts forecast an increase of 0.9% to 5.57 million, following a slump of 1.8% a month earlier.

In addition to housing-related data, this week’s calendar also features reports on flash Markit manufacturing and service sector activity surveys due on Wednesday, initial jobless claims on Thursday and durable goods orders on Friday.

Turning to the Euro, the single currency was higher at the close on Friday, adding 0.32% to trade at $1.1760. The euro zone is to publish preliminary data on manufacturing and service sector activity for August on Wednesday, amid expectations for a modest decline.

Meanwhile, the Office for National Statistics is to produce a second estimate on U.K. economic growth for the second quarter at on Thursday. The data is expected to confirm the preliminary figure that indicated economy grew 0.3% in the three months ended June 30 and advanced at the rate of 1.7% on a year-over-year basis.

The greenback fell to four month lows against the Japanese currency on Friday, closing at 109.18 in late trade and down 0.36%. Japan’s Statistics Bureau will publish July inflation figures on Thursday amid expectations calling for the headline figure to rise 0.5% year-on-year and extend the rally to the seventh straight month of annual increases.

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gold

Gold Looks Set to Strike $1,300 Level As Precious Metals Draw Haven Demand

Gold futures prices jumped sharply on Friday, trading at the highest level since early-November 2016 as demand for safe-haven assets increased. A selloff in global equities bolstered the precious metal’s price, helping gold to advance for its third straight trading day.

Gold for September delivery climbed more than 0.7 percent to trade at $1296.40 an ounce – the highest level since November 04th. The precious metal looks set for a weekly gain of about 0.5%.

While doubts about U.S. President Donald Trump’s ability to deliver his economic agenda are growing, terrorist attack in Barcelona on Thursday, which left 13 people dead and more than 100 injured, contributed to shake investors’ confidence.

U.S. President Donald Trump on Thursday did not only decry the removal of pro-slavery Civil War Confederacy monuments in Charlottesville, Virginia, but also unleashed attacks on two Republican U.S. senators, Jeff Flake and Lindsey Graham.

The dollar was hit hard as a spate of unfortunate events mounted concerns over Trump’s ability to work with lawmakers in his own party to win passage of his stimulus plans, such as tax cuts and infrastructure spending. A softer greenback caused purchasing assets priced in the currency such as gold more attractive to buyers holding other currencies.

Trade suggestion

Buy Stop at 1297.00, Take profit at 1305.00, Stop loss at 1293.00

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us-japan-1

Japanese Yen Extends Gains Versus Dollar Due to Global Share Sell-off

Japanese Yen extended its upbeat moves versus the dollar for the third day in a row as Asian stock investors joined a global retreat from riskier assets on Friday. While doubts about U.S. President Donald Trump’s ability to deliver his economic agenda are growing, terrorist attack in Barcelona on Thursday contributed to shake investors’ confidence.

The currency pair USDJPY lost more than 0.2 percent on Friday following a drop of 0.6 percent on Thursday, looking set to pair earlier weekly gains. Tracing downticks in U.S. stocks on Wall Street in the previous session, the MSCI Asia Pacific Index declined 0.7 percent while Japanese equities, which were dragged down by a strengthening yen, also traded lower. Japan’s Topix index fell 1.1 percent.

A terror attack on Thursday in Barcelona, which left 13 people dead and more than 100 injured, was a reminder that geopolitical risks remain a threat. The driver was reported to ram a van into pedestrians in the section of Las Ramblas – Barcelona’s most iconic avenue- before jumping out of the van and fleeing the scene. Police in Spain are still hunting the suspected terrorist.

Political turmoil in the U.S. was another caused that created uncertainty for investors to pullback and capitalize on their gains. U.S. President Donald Trump on Thursday did not only decry the removal of pro-slavery Civil War Confederacy monuments in Charlottesville, Virginia, but also unleashed attacks on two Republican U.S. senators, Jeff Flake and Lindsey Graham. A spate of unfortunate events mounted concerns over Trump’s ability to work with lawmakers in his own party to win passage of his stimulus plans, such as tax cuts and infrastructure spending.

Trade suggestion

Sell Stop at 109.300, Take profit at 108.900, Stop loss at 109.500

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Wal-Mart Shares Edge Lower As Sam’s Club Sales Fail to Hit Forecasts

Shares of Wal-Mart Stores Inc. dropped more than 2% in pre-market trading on Thursday after the retailing corporation reported second-quarter earnings and sales that topped Street expectations, but Sam’s Club sales fell below expectations.

Wal-Mart shares lost 2.84% to trade at $78.68 per shares after the retailer posted net income of $2.90 billion, or 96 cents per share for the three-month period to July, down from $3.78 billion, or $1.21 per share, for the same period last year.

Revenue was reported to reach $123.4 billion, up from $120.9 billion recorded one year ago and ahead of the $122.8 billion expected by analysts. Same-store sales soared 1.8%, with traffic growing 1.3% for the quarter.  Online sales, which added 70 basis points to comparable sales, were said to grow 60 percent, decelerating from the 63-percent growth rate in the previous quarter.

Sam’s Club sales rose to $14.9 billion last quarter from $14.5 billion last year, but failed to reach analysts’ forecast for a rise to $14.8 billion.

Trade suggestion

Sell Stop at 78.65, Take profit at 78.00, Stop loss at 79.00

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Cisco Shares Tick Down After Fiscal Q1 Revenue Downgraded

Shares of Cisco Systems Inc. dropped in after-hours trading on Wednesday after the technology conglomerate forecast another drop in revenue in the next quarter.

Cisco shares plunged by 2.5 percent to trade at $31.53 a share after having closed the regular session up 0.8%. Cisco reported earnings of $2.4 billion, or 48 cents a share, in the fiscal fourth quarter, slightly lower than $2.8 billion, or 56 cents a share, in the year-ago period.

Adjusted for one-time items, the networking company earned $3.1 billion, or 61 cents a share, in line with expectations calling for adjusted earnings of 61 cents a share. Revenue was reported to fall 4% to $12.1 billion in the quarter, from $12.6 billion a year ago.

Cisco anticipates that fiscal first-quarter revenue to fall between 3% and 1% year-over-year, which would send adjusted per-share earnings to the range between 59 cents and 61 cents for the quarter.

Trade suggestion

Sell Stop at 31.50, Take profit at 31.00, Stop loss at 31.70

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Crude Oil Futures Trade Lower As Weekly U.S. Production Jumps To Two-year Highs

Crude oil futures reversed lower on Wednesday after the Energy Information Administration reported that domestic production jumped to the highest weekly level in over two years.

U.S. West Texas Intermediate crude for September delivery shed more than 0.5 percent to trade at $47.26 a barrel on the New York Mercantile Exchange. The Energy Information Administration on Wednesday released data that showed supplies of crude oil fell by 8.9 million barrels in the week ended Aug. 11.

The reading did not only remark a seventh-straight weekly decline in U.S. crude supplies but was also more than double than the drop of 3.6 million barrels expected by analysts.

However, the report pointed to a rise of 79,000 barrels a day in total crude-oil production to 9.502 million barrels a day last week. According to EIA figures, that was the highest weekly output figure since mid-July 2015.

Trade suggestion

Sell Stop at 47.25, Take profit at 46.70, Stop loss at 47.50

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FED

ECB President Mario Draghi Disappoints, EURUSD Extends Losses

The euro lost ground broadly versus its peers on Wednesday after Reuters reported that European Central Bank’s President Mario Draghi would not deliver any new policy messages at the U.S. Federal Reserve’s Jackson Hole conference.

The single currency fell for the third day in a row versus its American counterpart. The pair EURUSD edged 0.32 percent lower to trade at $1.16900.

The report published by Reuters on Wednesday poured cold water on any hopes for the ECB’s Governor to announce plans to scale back its monetary stimulus program at the U.S. Federal Reserve symposium next week. The source reported that Draghi would focus on fostering a dynamic global economy, which is the theme of the conference due to be held on August 25th, and therefore, may keep any policy discussion until the fall.

Trade suggestion

Sell Stop at 1.16800, Take profit at 1.16300, Stop loss at 1.17050

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Sterling

British Pound Declines Further After U.S. July Retail Sales Data Smash Expectations

British Pound tumbled against its American counterpart on Tuesday after U.K. inflation came in softer than expected while U.S. retail sales data beat expectations.

The currency pair GBPUSD dropped nearly 0.89% to plunge to $1.28500 – the lowest level since July 12th. The Office for National Statistics reported that British inflation remained unchanged at 2.6% in July which missed analysts’ expectation calling for a 2.7% reading. Inflation had risen to a four-year high of 2.9% in May but cooled to a rate of 2.6% in the next two months.

Meanwhile, U.S. Census Bureau released July data that showed retail sales rise 0.6% on the month, compared with 0.4% expected. Core retail sales were reported to advance by 0.5% on a monthly basis, also topping forecast for a rise of 0.3%.

Trade suggestion

Sell Stop at 1.28450, Take profit at 1.28000, Stop loss at 1.28650

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us-japan-1

Global Shares Advance, Diverting Flows Away From Haven Assets, Yen Inches Lower

Japanese Yen extended losses versus its American counterpart to a third consecutive trading session on Tuesday as global shares continued to advance, sapping investors’ appetite for safe-haven assets like the Yen.

The currency pair USDJPY surged more than 0.5 percent on Tuesday to 110.19 yen per dollar following a rise of 0.4 percent on Monday. As the prospect of war between the U.S. and North Korea receded, Asian shares traded higher, tracing gains on Wall Street overnight.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 percent while Japan’s Topix index surged 1.2 percent. Stock indexes from Hong Kong to Sydney were also on a rise with Hong Kong’s Hang Seng index adding 0.4 percent and Australia’s S&P/ASX 200 Index gaining 0.7 percent.

A report from Korean Central News Agency (KCNA) on Tuesday showed that Kim Jong Un praised the military for drawing up a “careful plan” to fire missiles toward Guam but also decided not to launch a threatened missile attack on Guam, saying that saying he would watch the U.S.’s conduct “a little more.”

Futures on the S&P 500 advanced by 0.3 percent in Asian morning session after the underlying gauge closed 1 percent higher on Monday.

Trade suggestion

Buy Stop at 110.250, Take profit at 110.900, Stop loss at 110.000

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