It was reported today 8 August 2013 that prices of fuel in the West Texas Intermediate have experienced a number of shifts over the past two days. Trading dropped slightly on crude and gasoline as prices fell below average before the Energy Information Administration releases its report tomorrow regarding the current levels of stockpiles, which many experts believe will show a continued decline as was witnessed last month. Before then, the industry backed American Petroleum Institute is due to issue their report today.
Traders have also voiced concern over the fact that the conflict ridden Libya is still delivering way below capacity due to the closure of many of its facilities by protesters. Should the Libyan production remain at low levels, it may drive up prices as the US enters the summer driving season of August.
Analysts believe that the release of the two reports mentioned above will likely have an effect on the fluctuating market. Traders are advised to proceed with caution.
Euro Inches Towards High as the Aussie Enjoys a Reprieve
Following recent difficulties, it was reported today 8 August 2013 that the Euro had neared its greatest high in seven weeks of trading. The news comes as a report detailing Germany’s Factory Orders is set to be released, expected by many to show gains and an enhanced recovery for the European manufacturing powerhouse. Additionally, new analysis on the Italian economy has hinted that their downturn may be evening out at this point, providing welcome news to the Eurozone.
For its part, the Aussie showed two days gains following statements by the Reserve Bank Governor, Glenn Stevens, who indicated that the central bank may not go as far as previously expected in efforts for a reduction to benchmark borrowing costs.
Analysts assess that the Euro may enjoy a continued rise should the German report come in as expected. If this is the case, traders should watch for fluctuations in its trading. Additionally, while the Aussie may have made gains, traders should continue to proceed with caution on this currency in its pairings against its rivals.
Bank of Japan to Issue Rates and Statement
The central Japanese bank is expected to come out tomorrow 9 August 2013 with their monthly statement on monetary policy, in addition to announcing their decision on interest rates. Analysts remind readers that the Japanese are currently seeking to raise their levels of inflation in hopes of growing their economy. At this time, there do not appear to be any substantial estimations by experts on how the Bank of Japan will decide to act.
In the meantime, the Yen is reported to have suffered losses yesterday in trading against the US dollar and other rival currencies, but as of the writing of this report, is said to be making modest gains.
Analysts note that as with the vast majority of economic reports, the statement and rate decision can be expected to affect the value of the Yen in its trading. Traders should look for fluctuations following the release of the report.