Dollar range-bound as investors await Fed rate decision; yen trades with weak bias

The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day. “The dollar is likely to benefit as we still expect the Fed to maintain its hawkish stance. The dollar strengthened 0.14 versus the yen to trade at 113.66 on Wednesday. The euro traded at $1.1429 on Thursday. The New Zealand dollar traded flat at $0.6776, with little reaction to


The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day. “The dollar is likely to benefit as we still expect the Fed to maintain its hawkish stance. The dollar strengthened 0.14 versus the yen to trade at 113.66 on Wednesday. The euro traded at $1.1429 on Thursday. The New Zealand dollar traded flat at $0.6776, with little reaction to
Dollar range-bound as investors await Fed rate decision; yen trades with weak bias Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-08
Keywords: news, cnbc, companies, dollar, euro, traded, rates, bias, currency, versus, fed, decision, weak, bank, trades, rangebound, rate, investors, yen, trade


Dollar range-bound as investors await Fed rate decision; yen trades with weak bias

The dollar traded in a narrow range on Thursday as markets settled after U.S. midterm election results came in as expected, leaving investors free to focus on a Federal Reserve’s policy decision later in the global day.

The central bank’s Federal Open Market Committee (FOMC) is expected to maintain the hawkish language seen in recent policy statements, while keeping interest rates unchanged this time.

The Fed has raised rates three times this year as the U.S. economy boomed and inflation started to pick up, and it has signaled a rate rise in December, with two more hikes by mid-2019.

“The dollar is likely to benefit as we still expect the Fed to maintain its hawkish stance. The U.S. economy needs rising rates as wage pressures are building and there is a risk of an overheating of the economy,” said Sim Moh Siong, currency strategist at Bank of Singapore.

The prospect of further Fed tightening helped the dollar recover against the euro and yen, having lost ground after the mid-term elections resulted in a split Congress, with Democrats winning control of the House of Representatives and Republicans cementing their majority in the Senate.

Expectations that the Washington will descend into gridlock has reduced President Donald Trump’s chances of pushing through a fiscal stimulus package.

The dollar index, a gauge of its value versus six major peers traded at 96.22 on Thursday, gaining 0.23 percent.

The dollar strengthened 0.14 versus the yen to trade at 113.66 on Wednesday. The dollar has gained around 1.9 percent over the Japanese currency over the last nine trading sessions due to the diverging monetary policies of the U.S. Fed and the Bank of Japan (BoJ).

While the Fed is on track to raise interest rates the Bank of Japan will press on with ultra loose monetary policy because of low growth and inflation.

The widening interest rate differential between U.S. and Japanese bonds has made the dollar a more attractive bet than the yen, which is often a funding currency for carry trades.

The euro traded at $1.1429 on Thursday. The single currency had touched an intra-day high of $1.15 on Wednesday, due to dollar weakness rather than any substantial improvement in the euro zone’s economic fundamentals.

The standoff between the EU and Rome over Italy’s budget deficit and concerns over Europe’s slowing economic growth have handicapped the euro, which has lost 4 percent versus the dollar over the last six months.

Elsewhere in the currency market, the pound traded flat at $1.3124 in early Asian trade after gaining 3.36 percent versus the dollar in the last six trading sessions, as traders bet a Brexit agreement was close.

The New Zealand dollar traded flat at $0.6776, with little reaction to its central bank keeping rates on hold at 1.75 percent on Thursday.

The Australian dollar built on its gains of the previous three trading sessions versus the greenback to trade at $0.7283, to gain 0.1 percent versus. The Aussie was cheered by stronger than expected trade data out of China, its largest trade partner.


Company: cnbc, Activity: cnbc, Date: 2018-11-08
Keywords: news, cnbc, companies, dollar, euro, traded, rates, bias, currency, versus, fed, decision, weak, bank, trades, rangebound, rate, investors, yen, trade


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Oil range-bound as disruptions offset by rising US output

As a result of the production restraint and disruptions, oil inventories are falling globally. “OECD industry inventories declined by 40 million barrels in October to 2.92 billion barrels while global inventories decreased by 61 million barrels to 5,48 billion barrels. This clearly indicates that the market in 4Q17 is in material (1 million barrels per day) supply deficit,” said researchers at Bernstein Energy. Threatening to undermine the OPEC-led efforts to tighten the market is rising U.S. cr


As a result of the production restraint and disruptions, oil inventories are falling globally. “OECD industry inventories declined by 40 million barrels in October to 2.92 billion barrels while global inventories decreased by 61 million barrels to 5,48 billion barrels. This clearly indicates that the market in 4Q17 is in material (1 million barrels per day) supply deficit,” said researchers at Bernstein Energy. Threatening to undermine the OPEC-led efforts to tighten the market is rising U.S. cr
Oil range-bound as disruptions offset by rising US output Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-12-18  Authors: nick oxford, getty images
Keywords: news, games, cnbc, companies, bpd, offset, average, crude, output, barrels, 2018, supply, production, rangebound, oil, inventories, billion, million, rising, disruptions


Oil range-bound as disruptions offset by rising US output

RBC’s Helima Croft: US shale production is going to come back in 2018 6 Hours Ago | 03:08

Despite this, they said crude was generally receiving support from the ongoing Forties pipeline system outage in the North Sea, which provides crude underpinning Brent futures, as well as by voluntary supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers including Russia.

As a result of the production restraint and disruptions, oil inventories are falling globally.

“OECD industry inventories declined by 40 million barrels in October to 2.92 billion barrels while global inventories decreased by 61 million barrels to 5,48 billion barrels. This clearly indicates that the market in 4Q17 is in material (1 million barrels per day) supply deficit,” said researchers at Bernstein Energy.

“Global inventories now stand at less than 56 days (of demand), which is inline with the long-term average … With OPEC’s decision to extend cuts, we expect that OECD inventories will reach the 5-year trailing average (2.83 billion barrels) by 3Q18 and long-term average (2.7 billion barrels) by year-end 2018,” Bernstein added.

Threatening to undermine the OPEC-led efforts to tighten the market is rising U.S. crude production, which has soared by 16 percent since mid-2016 to 9.8 million bpd.

This means U.S. output is fast approaching that of top producers Russia and Saudi Arabia, which are currently pumping around 11 and 10 million bpd respectively.

U.S. shale production alone, which excludes large offshore facilities in them, Gulf of Mexico, is expected to rise by 94,000 bpd in January, marking a 13th consecutive month of increases, the U.S. Energy Information Administration said late on Monday.

Overall, the EIA said it expected U.S. production to hit a record 10.02 million bpd in 2018, on par with Saudi Arabia and not far off top producer Russia, which pumps around 11 million bpd.


Company: cnbc, Activity: cnbc, Date: 2017-12-18  Authors: nick oxford, getty images
Keywords: news, games, cnbc, companies, bpd, offset, average, crude, output, barrels, 2018, supply, production, rangebound, oil, inventories, billion, million, rising, disruptions


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The energy play that could thrive in a range-bound oil market

Thummel, a managing director and portfolio manager at the firm, sees energy infrastructure plays thriving in this environment. “They’re agnostic to the oil price. According to Thummel, they’re pretty much insulated from oil price volatility. “Stable oil prices are the key because that’s what keeps the sector intact and in place to move higher,” he added. His top energy pick is Cheniere Energy, which has a large footprint in the development of liquefied natural gas.


Thummel, a managing director and portfolio manager at the firm, sees energy infrastructure plays thriving in this environment. “They’re agnostic to the oil price. According to Thummel, they’re pretty much insulated from oil price volatility. “Stable oil prices are the key because that’s what keeps the sector intact and in place to move higher,” he added. His top energy pick is Cheniere Energy, which has a large footprint in the development of liquefied natural gas.
The energy play that could thrive in a range-bound oil market Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2017-10-24  Authors: stephanie landsman, lindsey janies, bloomberg, getty images, simon dawson, chris rank, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, games, cnbc, companies, natural, trading, portfolio, shares, market, energy, sees, oil, thummel, play, price, manager, rangebound, thrive


The energy play that could thrive in a range-bound oil market

Where one portfolio manager sees the best opportunities in energy 8 Hours Ago | 01:49

Even if oil has trouble breaking out of a $45 to $55 a barrel trading range over the next several months, one portfolio manager argues there’s still money to be made in energy — a group that has been lagging the broader market.

Tortoise Capital Advisors’ Robert Thummel believes investors just need to know where to look.

Thummel, a managing director and portfolio manager at the firm, sees energy infrastructure plays thriving in this environment.

“They’re agnostic to the oil price. It doesn’t matter if oil is $55 or if it’s $60 or if it’s $50. These companies are simply charging a fee to transport product through their pipelines,” Thummel said Monday on CNBC’s “Trading Nation.”

According to Thummel, they’re pretty much insulated from oil price volatility.

“Stable oil prices are the key because that’s what keeps the sector intact and in place to move higher,” he added.

His top energy pick is Cheniere Energy, which has a large footprint in the development of liquefied natural gas.

Thummel bought Cheniere’s stock in 2015 as it was struggling. He’s still finding reasons to be bullish on it even with shares down about 3 percent in the last two years.

“Cheniere plays a pivotal role in helping the U.S. export more liquefied natural gas. They own a lot of infrastructure on the Gulf Coast that liquefies U.S.-produced natural gas, loads it onto a ship and then exports it to countries throughout the world,” Thummel said.

And, he may be onto something. Cheniere shares have rallied 7 percent in the past two months.


Company: cnbc, Activity: cnbc, Date: 2017-10-24  Authors: stephanie landsman, lindsey janies, bloomberg, getty images, simon dawson, chris rank, kcna, thomas barwick getty images, source, lawrence mcdonald
Keywords: news, games, cnbc, companies, natural, trading, portfolio, shares, market, energy, sees, oil, thummel, play, price, manager, rangebound, thrive


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