PSCb2broker

Oil languishes below $80 as recession fears outweigh tighter supply......................................................
Oil hovered near a one-year low on Wednesday as increasing concerns over U.S. economic health and the Federal Reserve largely offset positive supply-side signals from a bigger-than-expected draw in crude inventories.

A growing number of Wall Street banks warned of a potential recession in 2023, especially if interest rates keep rising and if inflation proves to be stickier than expected.

Strong U.S. economic data this week suggested that upward pressure on inflation is likely to persist in the near-term, a trend that could invite even more hawkish moves by the Federal Reserve.

Brent oil futures fell 0.3% to $79.51 a barrel, while West Texas Intermediate crude futures sank 0.1% to $74.16 a barrel in early Asian trade. Both contracts plummeted to a one-year low on Tuesday.

While the Fed is expected to hike rates by a relatively smaller 50 basis points next week, it has warned that rates could peak at much higher levels if inflation continues to trend higher. Rising U.S. interest rates weighed heavily on oil markets this year as liquidity dried up and as traders feared slowing demand due to tighter monetary conditions.

Oil markets largely looked past industry data indicating a bigger-than-expected draw in U.S. oil inventories last week. While crude stockpiles fell, a sustained increase in product inventories, particularly gasoline, indicated that retail demand for fuel remained weak in the world’s largest oil consumer.

Government data due later in the day is expected to show U.S. inventories shrank by 3.3 million barrels last week, compared to a bumper 12.6 million barrel drawdown seen in the last week of November.

Focus this week is also on U.S. producer inflation data for November, which is set to provide more cues on the path of inflation in the country. Any signs that inflation remained high through the past month are likely to trigger more volatility in crude markets.

The dollar extended its recovery into a second session, also adding to the pressure on oil.

Crude markets started the week on a soft note after the Organization of Petroleum Exporting Countries and allies kept production steady during their last meeting for the year.

But crude supplies could still tighten further if Russia cuts production in response to new Western curbs and a price cap on its oil exports.

More signs of an economic reopening in China, the world’s largest crude importer, could also benefit markets with the prospect of improving demand. Several Chinese cities have scaled back anti-COVID measures in response to growing public ire against the government’s economically disruptive zero-COVID policy. ............................................................
Availability: 🇰🇭🇻🇳🇹🇭
⭐️Open your broker today, Contact Us⭐️
🏢18/F Canadia Bank Tower, No. 315, Ang Doung St, Phnom Penh
📱Telegram: https://t.me/pscb2broker
☎️Hotline: +855 60 907 000
📧Email: [email protected]
💻Website: https://pscb2broker.com

Asia FX edges higher, but hawkish Fedspeak limits gains.............................................................
PSCb2broker is a special company — with a unique story. It all started with just a handful of us developing specialized financial market trading software in a small room..............................................................

Asian currencies rose slightly on Friday as they recovered from a series of bruising sessions, with sentiment remaining constrained after hawkish signals from the Federal Reserve drummed up fears of more rate-hike action by the central bank.

China’s yuan was among the best performers in the region, rising 0.4%. But the currency was set to lose about 0.3% this week as concerns over rising COVID-19 cases and softening economic growth weighed.

The Japanese yen rose 0.2% as data showed consumer inflation surged to a 40-year high in October. The reading, which heralds increasing pressure on the Japanese economy, drove speculation that the Bank of Japan may be forced into eventually tightening monetary policy.

The bank has maintained ultra-low interest rates for the better part of a decade, and has so far given no indication that it plans to raise them. But this has also caused a sharp decline in the yen this year, as rising interest rates in other countries saw traders sell the yen in favor of better yields.

The dollar index and dollar index futures traded flat on Friday, but were set to gain slightly for the week after hawkish signals from the Fed saw markets reassess their expectations of more interest rate hikes.

St. Louis Fed President James Bullard said on Thursday that even under a dovish assumption of monetary policy, the Fed still needs to keep raising interest rates given that rate hikes this year have only had a limited effect on inflation.

Bullard said interest rates need to rise to at least 5% to 5.25% from current levels of near 4% to be able to sufficiently curb inflation. While data this month showed U.S. inflation softened more than expected in October, Bullard noted that this could easily change in the next month.

His comments boosted the dollar in overnight trade, and also supported U.S. Treasury yields. This spurred losses across most Asian currencies on Thursday.

While markets are still pricing in a relatively smaller 50 basis point hike by the Fed in December, Bullard’s comments tie in with signals from Fed Chair Jerome Powell that rates could peak at higher levels than initially thought.

In Southeast Asia, the Philippine peso rose 0.3%, supported by a bumper 75 basis point rate hike by the central bank. The bank also forecast more hawkish moves to curb inflation and to match the Fed’s pace of rate hikes.

Losses in the Indonesian rupiah were also limited after the country’s central bank hiked rates on Thursday and signaled more action against inflation.............................................................
Availability: 🇰🇭🇻🇳🇹🇭
⭐️Open your broker today, Contact Us⭐️
🏢18/F Canadia Bank Tower, No. 315, Ang Doung St, Phnom Penh
📱Telegram: https://t.me/pscb2broker
☎️Hotline: +855 60 907 000
📧Email: [email protected]
💻Website: https://pscb2broker.com

MetaTrader 5 Web: Mobile trading from any iPhones and Android devices.............................................................
PSCb2broker is a special company — with a unique story. It all started with just a handful of us developing specialized financial market trading software in a small room..............................................................
The new MetaTrader 5 web terminal is available on all Apple and Android devices. Regardless of iPhone versions and browsers, traders can fully manage their trading accounts using a mobile device. Furthermore, there is no need to download a mobile app from the Apple App Store or Google Play.

The new MetaTrader 5 Web provides a fully featured trading terminal from which users can:

Work with demo and live accounts
Receive any financial symbol quotes
Execute trading operations in any financial marketsAnalyze symbol quotes using more than 30 indicatorsUse Economic Calendar data for fundamental analysisAll these features are available from any mobile browser. The .popular night theme is also supported.

The new MetaTrader 5 Web Terminal has become faster and more efficient. The application has not just been optimized — it has been redeveloped from scratch. The new core has enabled faster response to commands and greater operational stability. The web terminal is safe to use since all transmitted information is securely encrypted..............................................................
Availability: 🇰🇭🇻🇳🇹🇭
⭐️Open your broker today, Contact Us⭐️
🏢18/F Canadia Bank Tower, No. 315, Ang Doung St, Phnom Penh
📱Telegram: https://t.me/pscb2broker
☎️Hotline: +855 60 907 000
📧Email: [email protected]
💻Website: https://pscb2broker.com