Summary:
- DOE build keeps crude oil under pressure
- USD little changed as ADP beats forecasts
- Larger than expected drop in ISM; Gold retest support
- UK manufacturing begins Q3 on weaker foot
- Another Nobel Prize winner critcises Crypto
The weekly inventory data from the US has offered little support for crude bulls, with oil remaining under pressure after a large outside day on Tuesday. The DOE crude oil inventories showed a build of 3.8M, marking a marked increase from the -6.1M last time out. The consensus forecast of -2.6M also called for another drawdown, but the immediate reaction has been a bit mixed - possibly because the build was smaller than last night’s API print of +5.6M.
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Create account Try a demo Download mobile app Download mobile appExpectations for this Friday’s NFP report have been pushed a little higher after the most recent private payrolls came in better than forecast. The ADP employment change showed 219k jobs had been added in the month of July, comfortably higher than the 186k expected. The prior reading was revised higher by 4k to 181k for good measure, with the beat ending a run of consecutive disappointments for this indicator.
The second economic release of note from the US this afternoon has shown a slightly disappointing outcome as far as the manufacturing sector is concerned, with the ISM reading falling to its second lowest level in a year. The ISM manufacturing PMI for July fell to 58.1 from 60.2 beforehand, with the reading coming in below the 59.4 expected.
UK manufacturing PMI fell short of the median estimate in July coming in at 54 points against the expected 54.2. It means a fall from 54.4 points registered in June and signals no long-lasting improvement on the horizon. Nevertheless, neither the British currency nor the FTSE100 (UK100) have responded notably to the reading.
There’s been a bit of mixed day so far for cryptocurrencies, with Ripple and Dash gaining while the other 3 markets decline. Krugman, who won the Nobel Prize in economics, claimed in his New York Times article that Bitcoin, just like other cryptocurrencies, erases 300 years of monetary system legacy. Economist stated that cryptocurrencies have no tether to reality, so the collapse of this market is likely.
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