Kiwi stabilizes after release of economic data
The New Zealand dollar stabilized on Thursday after the release of data and the policy decisions of the central bank.
Earlier government data showed retail sales rose 0.5% in the first quarter, while analysts expected a 0.3% drop.
Core sales rose 0.4%, while analysts expected no change.
The Reserve Bank of New Zealand recently decided to hold interest rates unchanged at 5.5%.
On trading, NZD/USD stabilized at 0.6098 as of 21:04 GMT.
Sterling
The pound fell 0.2% against the US dollar as of 21:05 GMT to 1.2692.
The UK manufacturing PMI rallied to 51.3 from 49.5 in the previous reading.
On the other hand, the services PMI slid to 52.9 from 54.7 in the previous reading.
The US Dollar
The dollar index rose 0.1% as of 20:43 GMT to 105.07, with a session-high at 105.1, and a low at 104.6.
Earlier US data showed unemployment claims fell to 215 thousand last week from 223 thousand.
The US manufacturing PMI rose to 50.9 in May from 50.
The services PMI jumped to 54.8 this month, while analysts expected a drop to 51.2.
NASDAQ continues to mark record highs
Most US stock indices rose today as markets process the Federal Reserve’s meeting minutes in addition to recent data.
The latest Federal Reserve’s meeting minutes were more bullish than expected, showing that many officials are still dismissive of any steps towards policy easing.
They focused on ongoing inflationary risks, including geopolitical events, and pointed to the pressure undergone by low-income consumers due to higher prices.
As for data, US unemployment claims fell to 215 thousand last week from 223 thousand, below estimates of 220 thousand.
On trading, Dow Jones fell 0.7%, or 301 points as of 17:45 GMT to 39,371, while S&P 500 rose 0.2%, or 8 points to 5315, as NASDAQ added 0.7%, or 119 points to 16,920.
Oil prices add over 1.5% following strong manufacturing data
Global oil prices rose over 1.5% in American trade on Thursday, on track for the first profit in four days following strong European, UK, and US manufacturing data.
Such data underpinned hopes of increasing global demand on fuel, and overshadowed negative US crude inventory data.
Prices
US crude rose 1.8% to $78.63 a barrel, with a session-low at $76.86.
Brent rallied 1.6% today to $82.93 a barrel, with a session-low at $81.23.
US crude lost 1.2% on Wednesday, while Brent shed 1.1%, the third decline in a row amid concerns about weak US demand.
Strong Industrial Data
Recent data showed the European manufacturing sector rebounded in May, with the British industrial sector rushing into growth territory this month, alongside similar growth in the US manufacturing sector.
Such data is a clear sign of improving global GDP growth in the second quarter of the year, in turn boosting fuel demand.
US Stocks
The Energy Information Administration reported a buildup of 1.8 million barrels in US crude stocks last week to 458.8 million barrels, while analysts expected a drop of 2.4 million barrels.
US gasoline stocks fell by 0.9 million barrels to 226.8 million barrels, while distillate stocks rose by 0.4 million barrels to 116.7 million barrels.
US Output
The EIA reported no change in US crude stocks at 13.1 million barrels last week for the tenth week in a row.
Prices Outlook
Commodities’ analysts at UBS said in a memo that oil prices have strived to advance this month as investors remain cautious in regards to ongoing restrictive monetary policies.
The analysts also pointed to persistent concerns about the increasing global crude inventories after a mild winter in parts of the northern hemisphere.
The bank’s analysts expect the oil market to undergo a deficit, with Brent likely rising to $91 a barrel in the next few months.
Dollar backs off one-week high ahead of major US data
Dollar fell in European trade on Thursday against a basket of major rivals away from one-week high, on track for the first loss in six days on profit-taking.
The latest Federal Reserve’s meeting minutes were more bullish than expected, showing that many officials are still dismissive of any steps towards policy easing.
Now investors await important US data on major economic sectors, in addition to unemployment claims data.
The Index
The dollar index fell 0.2% to 104.72, with a session-high at 104.96.
The index closed Wednesday up 0.3%, the fifth profit in a row, marking a week high at 104.97.
Fed’s Minutes
The minutes showed that Fed officials are concerned about the suitable timing of a rate cut, with several members expressing concerns about consumers using riskier financing methods to cover costs due to inflation.
Fed officials pointed to the persistent risks of inflation, with factors including geopolitical events, and they focused on the impact on consumers, especially low-income workers.
The Fed recently announced a decision to maintain interest rates unchanged at below 5.5% at the May meeting.
US Rates
Following the release of the minutes, the odds of a July Fed interest rate cut fell to 16%, while the odds of a September rate cut fell to 57%.
According to the Fedwatch tool, investors now only expect one interest rate cut by the Federal Reserve this year.
Important Data
Later today, US unemployment claims data will be released, expected to have fallen slightly to 220 thousand in the week ending May 17 from 222 thousand.
The US manufacturing PMI is expected up slightly to 50.1 in May, while the services PMI is expected at 51.2, barely down from 51.3 in April.