USD/JPY today

The yen strengthened the most and gained versus most of its 31 major peers as the Bank of Japan said it will increase the length of maturity of government bonds it buys.

Also, Investing.com posted that : 

The U.S. dollar dropped against the yen on Tuesday, pulling away from close to three-week highs as traders locked in profits from the greenback’s recent rally most other major currencies.

Trading volumes were expected to remain light ahead of the New Year’s holiday.

USD/JPY hit 119.19 during European early afternoon trade, the pair’s lowest since December 19; the pair subsequently consolidated at 119.51, retreating 0.94%.

The pair was likely to find support at 118.23, the low of December 18 and resistance at 120.83, the high of December 23.

The dollar remained broadly supported after final data last week showed that U.S. gross domestic product rose 5.0% in the third quarter, exceeding expectations for a growth rate of 4.3% and up from 3.9% in the three months to June.

The strong data fuelled further optimism over the strength of the U.S. economic recovery and added to expectations for the Federal Reserve to raise interest rates next year.

Oil rises to $60 per barrel

The Brent crude oil rose up this morning after the news from Libya that shows the fighting kept its largest ports, Es Sider and Ras Lanuf, shut.

Bloomberg posted today that :

Oil fell amid speculation that an escalating conflict in Libya won’t curb supply enough to shrink a global surplus that’s driven crude into a bear market.

West Texas Intermediate and Brent futures erased early gains. Fires have been extinguished at three of six tanks at Es Sider, Libya’s largest oil port, which were set ablaze after an attack by militants, said National Oil Corp. spokesman Mohamed Elharari. Algerian Energy Minister Youcef Yousfi called on OPEC to cut output to boost prices, the Associated Press reported.

Futures plunged 46 percent this year, set for the biggest annual drop since 2008, as the Organization of Petroleum Exporting Countries resisted supply cuts to defend market share in response to the highest U.S. output in three decades. Libya pumped 580,000 barrels a day in November, down from about 1.59 million at the end of 2010, data compiled by Bloomberg show. Trading was below average amid Christmas and New Year holidays.

Also, Reuters posted today that:

Brent crude oil rose to around $60 per barrel on Monday, supported by concerns about disruption to output from Libya, but a global supply glut kept prices nearly 50 percent off their peak for the year.

Libya is producing a scant 128,000 barrels of oil a day from fields connected to the far eastern port of Hariga, an oil official said, as fighting kept its largest ports, Es Sider and Ras Lanuf, shut.

The OPEC member nation has struggled with port blockades and protests, slashing output from the 1.6 million barrels a day it produced prior to the 2011 ousting of leader Muammar Gaddafi.

A fire sparked by a rocket attack last week on storage tanks at the port of Es Sider marked an escalation in damage to the country’s oil infrastructure.

“There’s tension in Libya, but liquidity is very thin so not much is needed to move oil prices,” said Hans van Cleef, senior energy economist at ABN Amro in Amsterdam.

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The Oil future price still low.

The end of 2014 is close and the oil price is still a round 60$ and it is the lowest at this year but also the assume price for 2015 is going to be some where close to 80$ for Brent Oil.

This is what came today in Bloomberg report as follow:

Saudi Arabia’s 2015 budget is probably assuming an oil price of $80 a barrel, and will be seen as a sign of confidence in the market, according to a former economic adviser to the country’s government.

The assumption is down from $103 a barrel for this year, John Sfakianakis, who used to be chief economic adviser to Saudi Arabia’s Ministry of Finance, said by phone after the budget was announced yesterday. The world’s biggest crude exporter set 2015 spending at 860 billion riyals ($229 billion) with revenue falling to 715 billion riyals from 1.046 trillion riyals in 2014, the Finance Ministry said. Oil, which has slumped 47 percent this year to $60.23 a barrel in London, accounted for 89 percent of its 2014 revenue.

Brent crude tumbled into a bear market this year as the U.S. pumped the most oil in more than three decades, leading the United Arab Emirates Energy Minister Suhail Al Mazrouei to urge producers from outside the Organization of Petroleum Exporting Countries to trim output. Iraq, the second-biggest producer in OPEC, said this week its 2015 budget is based on $60 oil.

And to read more, click here.

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Gold Future price, Down Again.

Gold future today back to trade under 1200$ while the US dollar strengthen with the improvement of the US economy at the end of this year.

Bloomberg.com, Also posted today that :

Gold futures traded below $1,200 an ounce as investors weighed the slump in oil prices and the dollar’s outlook. Volatility in the metal was close to the highest since January.

The gauge of 60-day historical volatility approached 18.1, a level on Dec. 16 that was the highest since Jan. 10. Aggregate trading was 55 percent lower than the average in the past 100 days for this time, according to data compiled by Bloomberg.

In November, gold touched $1,130.40, a four-year low. Last week, holdings in exchange-traded products backed by the metal dropped to the lowest since 2009 as the dollar surged to a five-year high against a basket of 10 currencies on the outlook for higher U.S. interest rates. The drop in energy prices reduced demand for an inflation hedge.

“The overall environment is very negative for gold,” Phil Streible, a senior commodity broker at R.J. O’Brien & Associates in Chicago, said in a telephone interview. “The market will remain volatile as trading will be very thin for the next two weeks.”

Gold futures for February delivery fell 0.1 percent to $1,195 at 10:38 a.m. on the Comex in New York. Through Dec. 19, the price dropped 14 percent from this year’s high of $1,392.60 on March 17.

In the week ended Dec. 16, money managers’ net-long position in Comex futures and options fell for the first time in five weeks, government data showed on Dec. 19.

So we conclude that the Gold price is in critical point as the Oil, what is going on with the world economy in the end of 2014 and where the prices moves ?

To read more, please click here

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Is the slump in the oil prices is temporary?

The oil prices at the end of 2014 was the lowest since 2009, And OPEC did not make any action to save the situation despite of some of it’s members they are not satisfied and saw that as a negative reaction against the price,But in the other side, some of the OPEC members said that it’s temporary.

Bloomberg.com posted today that “Oil Surges From Five-Year Low as OPEC Comments Add Volatility” as a headline, and also added that :
Crude prices surged from the lowest closing levels since May 2009 as comments from Saudi Arabia’s oil minister yesterday added to the most volatile market in three years.

West Texas Intermediate climbed 4.5 percent in New York, the biggest gain since August 2012. Both WTI and Brent rose more than 5 percent during the session. A measure of expected WTI futures movements and a gauge of options value was at the highest level since October 2011, data compiled by Bloomberg show.

While Ali Al-Naimi, Saudi Arabia’s oil minister, said yesterday that a slump in prices was temporary, he also said it would be “difficult, if not impossible” for OPEC to curb its oil production amid a glut, the Saudi Press Agency reported. Prices rose immediately after his remarks, before ending the day at the lowest in five years. The nation accounted for about 13 percent of global oil output last year, BP Plc estimates.

To read more, please click here.

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The GBP/USD rose to 1.5676 today.

Another successful day for the pound against the US dollar as it rose through the day from 1.5548 clearly in the 4 hours chart to 1.5676 by the end of the day.

Climbing from the lowest level in more than a year, after a report showed U.K. retail sales increased more in November than economists predicted.

Sterling strengthened the most versus the euro in 10 months as theOffice for National Statistics said the volume of sales including auto fuel increased 1.6 percent, the most this year. Economists forecast a 0.4 percent gain, according to the median estimate in a Bloomberg News survey. Minutes of the Bank of England’s December meeting, released yesterday, showed policy makers voted 7-2 to keep interest rates at a record low. U.K. government bonds fell.

“The market was taken by surprise,” said Jane Foley, senior foreign-exchange strategist at Rabobank International in London. “Retail sales were extremely strong. However, markets aren’t anticipating a rate rise until 2016 and even strong data isn’t enough to change that.”

The pound climbed 0.4 percent to $1.5642 at 4:06 p.m. London time after falling to $1.5541 yesterday, the lowest level since September 2013. The U.K. currency appreciated 1 percent to 78.44 pence per euro, the biggest advance since Feb. 12.

Sterling has gained 5.4 percent in the past year, the best performer after the dollar among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The greenback surged 11 percent, while the euro fell 1.6 percent.

To read more, click here.

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OPEC drops the bomb, No Change.

`I have no single comment on this, and i want you to see and feel the moment that the United Arab Emirates’ energy minister,Suhail Al-Mazrouei said.

“OPEC isn’t planning to change its Nov. 27 decision to keep the group’s collective output target unchanged at 30 million barrels a day” 

Also, OPEC will stand by its decision not to cut output even if oil prices fall as low as $40 a barrel and will wait at least three months before considering an emergency meeting.

While, some of the OPEC members considering this case as a big crisis but others are not and say “We are not going to change our minds because the prices went to $60 or to $40,” Also “We’re not targeting a price; the market will stabilize itself.” He said current conditions don’t justify an extraordinary OPEC meeting. “We need to wait for at least a quarter” to consider an urgent session. 

OPEC’s 12 members pumped 30.56 million barrels a day in November, exceeding their target for a sixth consecutive month, data compiled by Bloomberg show. Saudi Arabia, Iraq and Kuwait this month deepened discounts on shipments to Asia, feeding speculation that they’re fighting for market share amid a glut fed by surging U.S. shale production. The Organization of Petroleum Exporting Countries supplies about 40 percent of the world’s oil.

barrel of oil

This winter, Oil price going down as temperature.

Oil price today drop below 60$ after a barrel for the first time since July 2009 as Saudi Arabia questioned the need to cut output, signaling its priority is defending market share.

West Texas Intermediate crude slid 1.6 percent in New York. The market will correct itself, according to Saudi Arabian Oil Minister Ali Al-Naimi. Global demand for crude from the Organization of Petroleum Exporting Countries will drop next year by about 300,000 barrels a day to 28.9 million, the least since 2003, the group predicted yesterday.

Oil’s collapse into a bear market has been exacerbated as Saudi Arabia, Iraq and Kuwait, OPEC’s three largest members, offered the deepest discounts on exports to Asia in at least six years. The group decided against reducing its output quota at a meeting last month, letting prices drop to a level that may slow U.S. production that’s surged to the highest level in more than three decades.

So, are the OPEC going to take real action to stop that tragedy in the market ?

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