Demand for safe-haven assets such as precious metals has eased as geopolitical tensions between the US and N. Korea have somewhat calmed down. Gold slipped to record its steepest one day drop in nearly 6 weeks. The drop-in price was triggered by unexpected stronger economic data from the US retail and Manufacturing sector.
Crude Oil markets are weighed by general oversupply but also API oil inventory data for last week showed a 9.2 million barrel decline in crude inventories, gasoline inventories showed a small increase. Projections for the EIA’s US crude oil inventories print at 1630 CET show an expected consensus of -3.0 million barrels, -3.5 million less from last week’s -6.5 million barrel reduction. WTI trades around 47.8 USD/barrel, up 0.5% on NYMEX and up 0.61% near 51.1 USD/barrel for Brent on ICE.
UK Data for the change in the price businesses and the government pay for labour, including bonuses, is projected to show positive figures and continue to advance by +1.8% (1030 CET). A slow down could suggest consumer spending will suffer in future months. Today’s update on the jobless rate for July is expected to provide some upbeat news. Economists expect that unemployment will hold at 4.5% for a second month, marking the lowest level since 1975.
The US dollar was steady in Asian trade, and held its gains after upbeat retail sales figures left the door ajar for another Fed rate hike this year. EUR/USD trades just 0.10 percent higher at the start of Europe’s session at 1.1750. USD/JPY rallied to a session high of 110.91 as stocks push higher at the start of the day.
