News | Oil below $100.50 on Greece's awaited agreement |
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Analysis | Caution still dominate markets as Greece did not yet reach an agreement with bondholders over the size of the losses to avoid a messy default, which keeps demand on the higher yielding assets limited, increasing demand on the safe haven US dollar which is trading around 88.30 from the lowest at 79.99. The euro is falling, trading around 1.2915, while the European and U.S. equities turned lower, on profit talking operations ahead of the weekend and as Greece remains on Focus. Meanwhile General Electric reported quarterly earnings that beat expectations, yet markets are muted to it. As the dollar is gaining momentum downside pressures were imposed on commodities, therefore gold is trading with losses around the $1649.70 level, while crude oil is trading around $101.30 from the opening today at $101.09 and the highest at $102.04, Brent however is down 0.56% trading at $110.95. Data today included UK’s retail sales coming almost in line with expectations, Canada’s CPI expected, and the US existing home sales expected to expand in Dec., while Italy’s Prime Minister Mario Monti’s Cabinet will meet to pass a plan to boost economic growth. The downside pressures imposed by the strong USD and the renewed optimism about the euro zone's future were stronger than the fears over Iran, where new sanctions are expected to be placed early next week, which will increase worries that Tehran might close Strait of Hormuz, disturbing oil supplies. |
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