Driving Forces of the Dollar

By: Daniel Guttman / February 22, 2018

As the US dollar continues to rise in value, commodity markets are taking notice. According to Thomson Reuters, the dollar continues to firm as minutes of the Federal Reserve’s January meeting indicated that voting members, as well as the wider group of policy makers, were more confident on the economic outlook, which is reflected as an expectation of at least three interest rate hikes this year.

According the PVM, “Rising bond yields helped the US dollar strengthen. Its index against six major currencies hit its highest level in a week and it finished at 1.2282 against the euro, more than 2% stronger than the weakest level last Friday. Yet, front-month WTI only fell 11 cents/bbl to close at $61.68/bbl and Brent gained 17 cents/bbl and settled at $65.42/bbl although they both started to weaken this morning.”

DOLLAR INDEX CHART.png

 

Due to the President’s Day holiday, the release of the API and EIA statistics are delayed by one day.

According to the API statistics that were released last night:

  • US crude stocks declined by 907,000 barrels
  • Gasoline stocks were up by 1.5 million barrels
  • Distillate inventories were down by 3.6 million barrels

As today’s trading session gets underway it will be interesting to see what direction the market will take after the EIA stats are released. As of 7:30 this morning WTI crude, HO, and RBOB are all trending lower.


Categories: Daily Market Update


Daniel Guttman

Written by

Daniel Guttman

With a background in wholesale and commercial sales as well as pipeline scheduling, Daniel is currently the Manager, Business Development in the Card Access Fuels department. He is tasked to find new and innovative solutions to increase sales opportunities for the sales team while managing and evaluating internal department processes. He assists with day to day personnel management, customer data analysis, as well as the daily Pacific Pride inventory and pricing direction.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


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