In this article, we have covered the highlights of global market news about the Price of Natural Gas, Dollar, Crude Oil Prices and Gold Price.
Futures for natural gas: Further increases seem to be unfavorable
On Thursday, open interest in natural gas futures markets decreased by around 3.2 thousand contracts, which was the opposite of the previous increase when advanced prints from CME Group were included. After three days of daily increases, volume followed suit and decreased by roughly ten thousand contracts.
In the future, Natural Gas may try to consolidate some of its operations. On Thursday, the price of natural gas temporarily climbed over the $8.00 per MMBtu level for a short period; nevertheless, the commodity finished the trading session with slight losses and settled in the center of its daily range. This decline came at a time when open interest and volume were both on the down, highlighting the need for some consolidation in advance of a possible corrective decline in the near term.
The dollar gains traction as the atmosphere deteriorates ahead of PMI data.
Even though the European Central Bank (ECB) decided to raise its key rates by 50 basis points, the euro gained strength due to this move. However, the euro lost its positive momentum early on Friday due to the unfavorable shift seen in risk sentiment. During today’s European trading session, the US Dollar Index is moving closer to 107.00, while futures prices for US stock indexes are falling between 0.3 percent and 0.8 percent. On Friday, S&P Global will publish the results of its flash Manufacturing and Services PMI surveys for the United States, Germany, the euro region, and the United Kingdom. Data on Retail Sales for May will be included on the economic agenda for Canada.
In addition to the increase in dosage rate by a factor of two, the European Central Bank (ECB) presented its brand-new anti-fragmentation instrument, known as the Transmission Protection Instrument (TPI). The bank also gave up providing forward advice by announcing that all of its meetings would be broadcast live and that they would evaluate the data before making any decisions. During the press conference, Christine Lagarde, President of the European Central Bank, abstained from providing critical facts on the TPI. In the meanwhile, Italian President Sergio Mattarella has just dissolved the Italian parliament, which will result in early elections taking place on September 25.
Crude Oil Futures: Expectations Call for Further Decline
According to the flash data provided by CME Group for the crude oil futures markets on Thursday, market participants added more than 11,000 contracts to their open interest holdings. On the other side, volume fell for the second session in a row, this time by around 27.9 thousand contracts less than it did in the previous session.
The price of WTI may go back up to $96.50. On Thursday, the price of a barrel of WTI crude oil saw its second decline in a row due to an increase in open positions. In contrast to this, the commodity might continue its downward trend, with the immediate objective being the 200-day simple moving average, which is now $94.67, and the low for July being $96.46. (July 14).
Gold futures: Potential upside seems to be restricted.
According to preliminary readings from CME Group, open interest in gold futures markets decreased by around 9.6 thousand contracts on Thursday. In contrast, volume increased for the second trading session in a row, this time by around 87.4 thousand contracts.
Around $1,680, gold seems to have some support. The slight increase in the price of an ounce of troy gold that occurred on Thursday was driven by rising open interest; nevertheless, this leaves the possibilities for even further upside to be considerably decreased. On the positive side, there is strong support in the $1,680, which is also where the bottom for 2021 converges.
Please click here for the News Updates from July 21, 2022.