Articles by Roger Baettig
- Nat Gas steady ahead of EIA inventory report
May 16 2013 7:49 AM
Nat Gas futures remain in a short term upward move with the spot contract now remaining above the key $4/mmbtu for the third day in a row. As I have been discussing in detail in the newsletter I view the current move above the $4/mmbtu to be primarily technically driven as the current fundamentals have not changed and are neutral at best. The spot contract is now in a $4 to $4.16/mmbtu trading range. Whether or not the market is going to be able to remain in this range and even move above it will be very dependent on what is in store with the upcoming summer cooling season (yet to get underway).
- Brent Nears $103 on Falling Stockpiles
May 16 2013 7:44 AM
Brent crude oil slid toward $103 on Thursday following an unexpected drop in US factory output. The data added to uncertainty about future demand and brought Brent prices down to $103.14 at 9:20 GMT on Thursday morning. A steep drop in US factory output caused concern among investors who worried about the state of the global economy. Many attributed the lack of demand for exports to the ongoing eurozone recession and sluggish growth in China.
- Eurozone GDP Puts Euro Under Pressure
May 16 2013 7:40 AM
The euro remained under pressure on Thursday after weak GDP data was released Wednesday. The figures indicated that the European Central Bank's prediction of growth in the second half of 2013 is looking less and less likely. With poor data on the table, the ECB is likely to remind markets of their plan to cut deposit rates if need be.
- Is the Fed is sticking to its policy or stuck in it?
May 16 2013 7:27 AM
You can find now the optimism of having a closer ending of the Fed’s QE at the price of gold which is traded below 1400$ no per ounce after it had been well buoyed following the credit crisis because of that policy which is still underpinning the assets prices in US and you can see that also at the current unprecedented prices in US equities market which pushed up the risk appetite in Europe and Asia too while the treasuries are still also well-supported watching markedly falling of its yields since the worries about the US labor market has increased with the release of March labor report which suggested continued support by the Fed to it and this stance has not changed even after April report which came better than expected.
- Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD
May 15 2013 1:28 PM
• Euros falls to a 6-week low due to a contraction in GDP • Sterling strengthens after the release of the Quarterly Inflation Report by the BoE • USD climbs despite mixed US data output
- Gold Prices Continue to Fall
May 15 2013 12:24 PM
Gold is still in trouble as it continues to fall. This morning gold prices are down $12.61 to $1,413.60 an ounce sparking investors to worry that the downward trend will continue.
- South Africa Imports $1 Billion of Unwrought Gold to Meet Global Demand
May 15 2013 8:47 AM
On Tuesday 14th May, workers at Lonmin PLC, the world’s No. 3 platinum producer in South Africa began a wildcat strike. This caused immediate disruption of all mine production and led to concerns that South Africa was yet again to endure violence and disruption in its mining industry.
- Nat Gas futures still above $4/mmbtu level
May 15 2013 8:31 AM
For the first time in well over a week the spot Nat Gas contract was able to settle above the key $4/mmbtu technical resistance area. The market has been in the midst of a short covering rally since trading began on Monday. The majority of the upside move and breaching of the $4/mmbtu is mostly driven by a technical move as the overall fundamentals have not changed all that much over the last week or so. Technically the spot futures contract is now in a new higher trading range of $4/mmbtu on the support side and $4.16/mmbtu as the upper resistance level. I am still of the view that the market will need fundamentals support to sustain a move to the upside from current levels.
- Frances falls into recession
May 15 2013 8:27 AM
The growing market concern over the weakening oil fundamental picture is continuing to pressure oil prices with the complex declining for the fourth trading session in a row. The fact that the US dollar index was also strong yesterday contributed to the selling in the oil pits. The rally in equity markets… normally a positive driver for oil prices… was largely ignored with the strong US dollar and prospects for weaker demand turning out to be the main negative price drivers for the complex.
- Brent Slips as Supply Outpaces Demand
May 15 2013 8:20 AM
Brent crude oil slid toward $102 on Wednesday as rising supply and waning demand kept a lid on prices. The commodity traded at $102.22 at 7:47 GMT on Wednesday morning. The Wall Street Journal reported that a figures from the International Energy Agency on Tuesday showed that output from the Organization of Petroleum Exporting Countries increased to 30.7 million barrels per day from 200,000 bpd. According to the IEA, that exceeds the world's needs by about 1.8 million barrels.
- ZEW Results Weigh on Euro
May 15 2013 8:16 AM
The euro tumbled on Wednesday morning on disappointing figures from Germany and pessimistic forecasts for the region's economic data, due on later in the day. The common currency neared a one month low as it fell below $1.29 and traded at $2.2894 on Wednesday morning.
- Daily Summary on USD, EUR, JPY, GBP, AUD, CAD and NZD
May 14 2013 1:26 PM
• JPY hits new highs after plunging to its lowest level in over 4 years • USD remains strong with the fall of import prices • AUD remains under pressure with the release of the RBA’s budget plan