Oil prices mixed.
Oil prices were subdued on Monday as expectations of higher OPEC+ output and recovering Gulf crude exports offset lingering geopolitical uncertainty surrounding the Strait of Hormuz.
The latest move reflects competing forces in the oil market. While recovering Gulf exports and higher OPEC+ output continue to point to a better-supplied market, mixed signals from Washington and Tehran over future arrangements for the Strait of Hormuz have kept risk-appetite in check. ANZ said Brent’s futures curve remains in a bearish contango structure, where prompt prices trade below longer-dated futures, signalling expectations of near-term oversupply.
OPEC+ agreed over the weekend to increase production targets by 188,000 barrels per day from August, extending its phased rollback of voluntary output cuts. While much of the additional production has yet to reach the market, the decision reinforces expectations that supply will continue to recover as conditions in the Persian Gulf normalize.
Bitcoin climbs above $63k.
Bitcoin climbed above $63,000 in Asian trading on Monday, extending last week’s rally as softer-than-expected U.S. economic data tempered expectations of a near-term Federal Reserve interest rate hike, while renewed inflows into spot ETFs improved investor sentiment.
The world’s largest cryptocurrency last traded 0.8% higher at $63,227.5 by 01:18 ET (05:18 GMT), after reaching a two-week high of near $64,000 in the previous session.
Bitcoin jumped roughly 5% last week, rebounding from a 21-month low below $58,000 touched earlier in the week.
Bitcoin rebounds on reduced Fed hike fears
Market sentiment improved after weaker-than-expected U.S. June payrolls data reinforced expectations that the Federal Reserve is unlikely to raise interest rates this year.
Investors also drew comfort from comments by Federal Reserve Chair Kevin Warsh, who said inflation had continued to moderate and reaffirmed that policymakers would remain data-dependent, prompting markets to further pare back expectations of additional monetary tightening.
Dollar firms after weekly loss.
The dollar firmed on Monday, recovering from last week’s losses as investors continued to fret over U.S. interest rates, while the Japanese yen remained weak and on intervention watch.
Focus this week is on the minutes of the Federal Reserve’s June meeting for more cues on interest rates and the central bank’s communication under new Chair Kevin Warsh.
Among other major currencies, the euro and pound fell 0.1% apiece in early trade.
Dollar rises after weekly losses; Fed minutes in focus
The dollar index rose nearly 0.2%, recovering from a 0.5% drop last week.
The greenback was pressured chiefly by softer-than-expected nonfarm payrolls data for June, which raised questions over just how much headroom the Fed has to hike rates.
Still, losses in the dollar were limited by continued uncertainty over a hawkish Fed, especially as the central bank’s June meeting showed policymakers growing increasingly in favor of higher rates amid sticky inflation.
The minutes of the central bank’s June meeting are due this week, although it remained unclear just how much insight they will provide, given that new Fed Chair Kevin Warsh called for an overhaul of the central bank’s communication with the public.
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