Impact of crude oil in the US fades after an eight-day growth

Shares of Australian companies rose by 1.65%. The increase is quite impressive, if we recall the fall of 2.3% during the previous two sessions. Seoul’s markets were shocked: North Korea tested the intercontinental ballistic missile. The Australian dollar rose 0.1% and traded at $ 0.7666 on the eve of the meeting of the Reserve Bank of Australia. It is expected that the RBA will keep the interest rate unchanged, at 1.5%. The US dollar rose after the June index of activity in the industrial sector came out better than expected. Another positive factor for the US currency is a positive and stable increase in government spending on construction projects in May.

Against this backdrop, the yield on US bonds rose to a maximum of 9 years. The US markets are closed today due to the July 4 holiday. The euro did not change much, while the pound sterling skyrocketed. Nevertheless, the British currency failed to restore Monday’s losses, amounting to 0.7%, against the backdrop of the disappointing performance of the country’s manufacturing sector.

In the commodity market, oil fell in price early in trading this morning, completing the rapid eight-day growth. The reason for the fall in the cost of raw materials can be considered likely growth in oil production in the US. Most traders preferred to close their active positions on the eve of July 4 – the US Independence Day. From the point of view of technical analysis, Brent crude met resistance around $ 50. WTI futures traded 0.5% lower, that is, one barrel of oil fell 25 cents, and at the beginning of trading the price was $ 49.41 per barrel. Some analysts suggest that production and production in the US produced a small but significant push in the oil market. Ultimately, this will have a definite effect on the efforts of OPEC in the fight against the excessive supply of raw materials. OPEC countries announced a reduction in production and 1.2 million barrels per day in January 2017 – March 2018. Nevertheless, this statement is contrary to the growth in production in Nigeria and Libya.

Today will be the index of business activity in the construction sector in the UK, which is published monthly. This indicator indicates the state of the country’s economy, as it reflects the opinion of more than 170 purchasing managers interviewed about the business climate in Britain. The respondents assessed the conditions of doing business on such aspects as: employment, production, new orders, prices, supplies from suppliers and stocks. As a rule, higher than expected index index positively affects the rate of the British pound. And on the contrary: a lower figure could lead to a drop in the pound sterling.