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Oil slides 4% on Russian oil price cap talks, U.S. gasoline build

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HEADLINES

 

 

  • Dollar down as U.S. data weighs; traders await Fed minutes
  • Gold muted as market eyes Fed minutes
  • Oil slides 4% on Russian oil price cap talks, U.S. gasoline build
  • Growth stocks boost Wall Street ahead of Fed minutes
  • Treasury yields slip as traders await Fed minutes
  • NZD/USD: Break above 0.6203/05 to expose the 200 DMA at 0.6302 – Credit Suisse
  • EURUSD Short Term: Upside favored

 

 

Dollar down as U.S. data weighs; traders await Fed minutes

 

 

The U.S. dollar fell across the board on Wednesday, after data showed U.S. business activity weakened further in November and as traders remained on edge ahead of the impending release of minutes from the Federal Reserve's November meeting.

After a headlong rush this year to raise interest rates, the Fed switched this month to a more nuanced approach that was seen as a compromise between officials most concerned about high inflation and others worried that more large rises in borrowing costs might crater the economy or stress key markets.

The euro rose 0.6% against the dollar to $1.0362, on pace for a second straight session of gains.

 

 

COMMODITIES

 

 

Gold muted as market eyes Fed minutes

 

 

Gold prices were steady on Wednesday with investors eyeing the release of minutes from the U.S. Federal Reserve’s November policy meeting for guidance on the central bank’s rate hike trajectory.

Spot gold rose 0.1% to $1,741.75 per ounce by 10:25 a.m. ET (1525 GMT), while U.S. gold futures were unchanged at $1,739.80.

Also helping gold, the dollar was down 0.6%, making gold cheaper for holders of foreign currencies, while benchmark treasury yields were also lower for the day.

In other metals, silver rose 0.8% to $21.25 per ounce, platinum fell 0.9% to $982.08 while palladium gained 0.7% to $1,873.44.

 

 

ENERGY

 

 

Oil slides 4% on Russian oil price cap talks, U.S. gasoline build

 

 

Oil prices fell more than 4% on Wednesday as the Group of Seven (G7) nations looked at a price cap on Russian oil above where it is currently trading and as gasoline inventories in the United States built by more than analysts' expected.

Brent futures for January delivery fell $3.80 to $84.56 a barrel, a 4.4% loss, by 12:19 p.m. ET (17:19 GMT). U.S. crude fell $3.73, or 4.6%, to $77.22 per barrel.

Both contracts had risen by over $1/bbl earlier in the session.

U.S. gasoline stocks rose by 3.1 million barrels, according to the Energy Information Administration. Analysts had estimated a build of 383,000 barrels.

 

 

STOCKS

 

 

Growth stocks boost Wall Street ahead of Fed minutes

 

 

Wall Street's main indexes rose on Wednesday as growth stocks gained after a mixed bag of economic data led to a drop in Treasury yields, while investors awaited minutes from the Federal Reserve's latest policy meeting.

Heavyweight stocks including Apple Inc (AAPL.O) Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O) and Meta Platforms Inc (META.O) rose between 0.4% and 0.7%.

Tesla Inc (TSLA.O) jumped 5.2%, outperforming its peers, after Citigroup upgraded the electric-vehicle maker's stock to "neutral" from a "sell" rating.

The S&P index recorded 20 new 52-week highs and no new low, while the Nasdaq recorded 53 new highs and 73 new lows.

 

 

Treasury yields slip as traders await Fed minutes

 

 

Treasury yields ticked down on Wednesday as investors looked to the release of U.S. Federal Reserve meeting minutes, which could provide clues about future monetary policy.

The benchmark 10-year Treasury yield was trading at around 3.733% at around 12:30 p.m. ET, down 2.5 basis points. The yield on the 2-year Treasury was down by 2.3 basis points at 4.494%.

Yields and prices move in opposite directions and one basis point equals 0.01%.

 

 

ANALYSIS

 

 

NZD/USD: Break above 0.6203/05 to expose the 200 DMA at 0.6302 – Credit Suisse 

 

 

“We continue to expect an eventual break above the last week’s highs at 0.6203/05, above which would open the door to the 200 DMA at 0.6302. Should a convincing break above here be achieved, this would suggest further medium-term strength, with the next firm resistance seen at the August highs at 0.6456/68.” 

“Immediate support remains seen at the 13-Day Exponential Moving Average and recent lows at 0.6069/60, but we look for support at 0.6000/5983 to try to prevent any sharper move lower to avoid a lengthier consolidation.”

 

 

CHART

 

 

EURUSD Short Term: Upside favored

 

 

Technical View: Long position above 1.0323. Target 1.0383. Conversely, break below 1.0323, to open 1.0297.

Comments: The pair breaks above the resistance.

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar


Footnotes
https://www.reuters.com/markets/currencies/dollar-tentative-investors-await-fed-minutes-2022-11-23/
https://www.reuters.com/article/global-precious/precious-gold-muted-as-market-eyes-fed-minutes-idUSL4N32J2FG
https://www.reuters.com/business/energy/oil-prices-climb-big-drop-us-crude-stocks-russia-supply-uncertainty-2022-11-23/
https://www.reuters.com/markets/us/futures-flat-with-fed-minutes-focus-2022-11-23/
https://www.cnbc.com/2022/11/23/treasury-yields-as-traders-await-fed-minutes-key-economic-data.html
https://www.fxstreet.com/news/nzd-usd-break-above-06203-05-to-expose-the-200dma-at-06302-credit-suisse-202211231441
 

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