It is expected that the U.S. central bank will increase interest rates this year, however there is still speculation as to when and if this rate change will be imposed.
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USA crude rose 0.1 percent to $46.85 a barrel, with their surge slowing after a Reuters report that suggested Saudi Arabia was cranking its crude output to new record highs, even as OPEC talked of ways to ease a global glut.
“Most also saw relatively low risk that a further gradual strengthening of the labor market would generate an unwanted increase in inflationary pressures”, the minutes said. It is down 1.5 per cent for the week.
The minutes released Wednesday closely parallel the message the Fed sent in a statement it released after its July meeting.
The dollar sank below the 100 yen mark, falling to 99.94 yen from 100.28.
While policymakers agree that more economic data is needed before raising rates, some expect a hike will be needed soon, according to the minutes from the US central bank’s July 26-27 policy meeting. Dow e-minis 1YMc1 were down 10 points, or 0.05 percent, with 15,322 contracts changing hands.
While traders have nearly completely ruled out a hike in September, they have priced in a 41.7 percent chance for a move in December – down from 45.1 percent on Wednesday, according to CME Group’s FedWatch tool. It jumped 62 cents the previous session.
Global benchmark Brent crude pulled back 0.1 percent to $50.84, after climbing as much as 2.4 percent to an eight-week high of $51.05 on Thursday.
Gold prices rose Thursday, but gains were limited in the wake of another sharp decline in the United States dollar, casting doubts about the ability of precious metals to set new highs. The Brexit vote also fueled interest in gold, but the price eased after the Conservative Party in United Kingdom moved quickly to appoint a new Prime Minister following the resignation of David Cameron, who supported the Remain camp.
The Malaysian ringgit tacked on 0.5 percent against the US unit, while the Indonesian rupiah was up 0.3 percent and the Thai baht rose 0.2 percent.
Cisco fell 1.3 percent to $30.72 after technology news site CRN reported the company is laying off employees.
Silver was down 0.5 per cent at $19.63 an ounce. Morgan Stanley strategists Matthew Hornbach and Guneet Dhingra said in a research note today that the probability of a December rate hike will fall to 30% in coming weeks as inflation remains subdued, with no major uptick in sight.
In addition to a sagging dollar, crude oil has been boosted as the world’s largest producers prepared to discuss a possible freeze in production levels.
US crude settled at $48.22, up 3.06 percent after touching a session high of $48.38, the highest since July 5. Seoul’s Kospi added 0.9 percent to 2,017.94 and Sydney’s S&P-ASX 200 advanced 0.4 percent to 5,497.40.
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Benchmark copper on the London Metal Exchange was flat at US$4,8907 a ton after rising 0.7 percent overnight.
