Menu
Brokers
MT4 Forex Brokers
MT5 Forex brokers
PayPal Brokers
Skrill Brokers
Oil Trading Brokers
Gold Trading Brokers
Web Browser Platform
Brokers with CFD Trading
ECN Brokers
Bitcoin FX Brokers
PAMM Forex Brokers
With Cent Accounts
With High Leverage
Cryptocurrency Brokers
Forums
All threads
New threads
New posts
Trending
Search forums
What's new
New threads
New posts
Latest activity
Log in
Register
Search
Search titles only
By:
Search titles only
By:
Menu
Install the app
Install
Reply to thread
Forums
Forex Discussions
Technical Analysis
Daily Market Outlook By PYX Markets
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Message
[QUOTE="PYX Markets London, post: 111177, member: 38730"] [b]Daily Market Outlook 6th October [/b] [img]https://scontent-amt2-1.xx.fbcdn.net/v/t1.0-9/13938553_118457278597764_4706199327588223406_n.jpg?oh=4cb4000aa052d5b9cf8c6e211c4ac665&oe=581DD5BC[/img] Asian shares firmed on Thursday thanks to stronger U.S. economic data, while growing prospects of a near-term U.S. rate hike and possible tapering of stimulus in Europe hit gold and lifted the dollar to one-month highs versus the yen. U.S. services sector activity recovered sharply in September from six-year low hit in August, following similarly upbeat news from U.S. factories on Monday. Growing optimism on the U.S. economy boosted bets that the U.S. Federal Reserve will raise interest rates in December. A strong U.S. payrolls report on Friday could cement expectations of a rate hike. The median forecast of economists polled by Reuters is for non-farm payroll to rise 175,000. The rise in bond yields partly stemmed from speculation the European Central Bank may eventually taper its bond buying after Bloomberg reported on Tuesday the bank would probably wind down the monthly 80-billion euro ($90 billion) scheme. The specter of tighter monetary policy in the U.S. and Europe hit precious metals hard. The dollar stuck to narrow ranges against its major rivals in Asian trade on Thursday, ahead of this week's nonfarm payrolls report that could reinforce expectations that the U.S. Federal Reserve will hike interest rates by December. Underpinning the dollar, Chicago Fed President Charles Evans said he would be "fine" with raising U.S. interest rates by year-end if U.S. economic data remained firm. On the economic data front on Wednesday, upbeat U.S. services sector activity offset a weaker-than-expected print on private-sector job growth ahead of Friday's jobs report. The monthly employment figures are expected to show 175,000 jobs were added in September, according to the median estimate of 100 economists polled by Reuters. Market participants will also look for any upward revision to August's weaker-than-expected gain of 151,000 jobs. A strong U.S. payrolls report on Friday could see the market price in a 70 percent chance of a December hike, according to Chris Weston, chief market strategist at IG in Melbourne. Evidence that the so-called natural rate of interest has fallen to low levels could mean the economy is stuck in a low-growth rut that could prove hard to escape, Federal Reserve Vice Chair Stanley Fischer said on Wednesday. Speaking to a central banking seminar in New York, the Fed's second-in-command said he was concerned that the changes in world savings and investment patterns that may have driven down the natural rate could "prove to be quite persistent...We could be stuck in a new longer-run equilibrium characterized by sluggish growth." As a result, he said, central bankers may face a future where the short-term interest rates set by policymakers never get far above zero, and the unconventional tools used during the financial crisis become a "recurrent" fact of life. "Ultralow interest rates may reflect more than just cyclical forces," Fischer said, but "be yet another indication that the economy's growth potential may have dimmed considerably." Fischer's remarks did not address current Fed policy or interest rate plans. Fischer said the "silver lining" was the possibility that better policy could lift the natural rate along with U.S. potential. It would take more than monetary policy, however, and would require "some combination of improved public infrastructure, better education, more improvement for private investment, and more effective regulation." Oil futures dipped on Thursday after Saudi Arabia trimmed the price of its flagship crude to Asia, but were still near more than three-month highs following a drop in U.S. crude inventories. Both contracts hit their highest levels since June on Wednesday after the U.S. Energy Information Administration (EIA) said crude stockpiles fell 3 million barrels last week to 499.74 million barrels. Despite the drawdowns, stocks were still close to all-time highs. Traders pointed to profit taking following recent price rises and said Thursday's fall also reflected weaker physical crude after top exporter Saudi Arabia cut the price of its Arab Light crude to Asian customers for November in a sign that the global fuel supply overhang persists. Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore, said that at around $50 a barrel for WTI, U.S. shale drillers, who have spent much of the year cutting back unprofitable production amid low prices, may start bringing back mothballed rigs. Overall, however, most analysts said that the market was well supported at current levels, especially because of a planned output cut by the Organization of the Petroleum Exporting Countries (OPEC). There were also risks of forced supply disruptions, especially in North Africa, Nigeria, and Venezuela Barring such a disuption, most analysts did not expect prices to shoot up much further as production will remain high even with an OPEC cut, and plenty of fuel remains in stock. "Resilient production in the U.S. and Russia will postpone crude market rebalancing and keep the market in surplus into 2017," BMI Research said in a note to clients, even cutting its price forecast for next year. "With an insufficient demand response to counteract strong supply, the result is a downward revision of our 2017 Brent forecast to $55 per barrel from $57 per barrel," BMI said. [/QUOTE]
Insert quotes…
Verification
Post reply
Top
Bottom
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…