- Oil rises after US pull out of Iran nuclear deal
- DOE draw also contributes to the gains
- NOK and SEK both moving higher
- USD pulls back after PPI falls more than expected
A notable increase in geopolitical risk has sent the price of crude higher today with Oil moving above the $77 mark and Oil.WTI breaching $71. The big development happened last night when US president Trump announced that they would withdraw from the Iranian nuclear deal and reimpose sanctions on Tehran.
Almost overlooked in yesterday’s gains was the late release of a lower than expected API inventory reading which showed a fall of 1.9M barrels in the past week. Today’s more widely followed DOE release has also provided more good news for oil bulls with a 2.2M drop and shortly after the release the markets recorded fresh highs.
Scandinavian currencies are enjoying a decent gain today with the NOK benefiting from the rise in Oil as well as some domestic based data which showed inflation rise more than forecast. The SEK is also making good headway after the release of its own inflation report, although the findings were largely in line with forecasts.
Inflationary pressures in the US have cooled according to the latest data with the PPI for April falling more than forecast. In Y/Y terms the gauge fell to 2.6% from 3.0% previously - well below the 2.8% expected. Stripping out the food and energy components to arrive at a "core" reading the release was even lower at 2.3% Y/Y from 2.4% prior. The USDIDX was drifting lower and made a new low for the day shortly after the release, but if truth be told the buck was already drifting before the data hit.
This week has not gone well for cryptocurrency traders so far, of course for those who have been betting on price rises, as major virtual currencies keep moving south. However, today the markets have found a little traction with small gains seen in all 5 markets and Bitcoin trading around 9250 on the European close.
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