• MTS Economic News_20170809

    9 Aug 2017 | Economic News

·         The yen firmed slightly against the dollar early on Wednesday after North Korea said it is considering plans for a missile strike on the U.S. Pacific territory of Guam.

The dollar weakened slightly against the yen, which is often sought in times of geopolitical tension. The U.S. currency was down 0.15 percent at 110.140 yen, edging towards a seven-week low of 109.850 set last week.

The euro stood little changed at $1.1762. The common currency had lost about 0.4 percent overnight after news U.S. job openings surged to a record in June reinforced Friday's robust payrolls data and supported the greenback.

The dollar index, which tracks the greenback against a basket of six major rivals, was nearly flat on the day at 93.657 .DXY, remaining above last week's 15-month low of 92.548.

The yield on the benchmark 10-year U.S. Treasury note US10YT=RR fell to 2.254 percent from its U.S. close of 2.282 percent on Tuesday.

·         The White House faces a dearth of options to peacefully rein in an aggressive Pyongyang after the rogue nation warned late on Tuesday that it is seriously considering striking Guam.

 In a statement carried by the state-run KCNA news agency, the North Korean army said it was "carefully examining an operational plan" for targeting the U.S. island territory with "enveloping fire" using the medium-to-long-range Hwasong-12 ballistic rocket.

The threat comes on the heels of a sharp warning from President Donald Trump earlier in the day. Pyongyang "will be met with fire, fury, and frankly, power, the likes of which this world has never seen before," Trump had said following a Washington Post report that claimed the pariah state was capable of a miniaturized nuclear weapon.


·         U.S. job openings jumped to a record high in June, outpacing hiring, the latest indication that companies are having trouble finding qualified workers.


The monthly Job Openings and Labor Turnover Survey, or JOLTS, released by the Labor Department on Tuesday also underscored labor market strength that will likely encourage the Federal Reserve to continue tightening monetary policy despite benign inflation and concerns about consumer spending.


·         Oil prices slipped on Tuesday, pulling back from recent gains as exports from key OPEC producers rose and despite news of lower crude shipments from Saudi Arabia.

Benchmark Brent crude LCOc1 settled down 23 cents a barrel at $52.14 a barrel. U.S. light crude CLc1 ended down 22 cents at $49.17 a barrel.

·         The U.S. Energy Information Administration said on Tuesday it expects U.S. crude oil production in 2018 to rise by less than previously expected.

The agency forecast that 2018 crude oil output will rise by 560,000 barrels per day to 9.91 million bpd. Last month, it expected a 570,000 bpd year-over-year increase to 9.9 million bpd.

For 2017, it forecast a rise of 500,000 bpd to 9.35 million bpd. Last month, it expected a 460,000 bpd increase to9.33 million bpd, according to the EIA's monthly short-term energy outlook.

Meanwhile, the agency forecast that U.S. oil demand for 2017 is set to grow by 340,000 bpd compared with a310,000 bpd previously. For 2018, oil demand is expected to rise by 330,000 bpd vs 360,000 bpd previously.

Reference: Reuters, CNBC

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