Markets saw a surprise unexpected decline in case of crude inventories as reported by the American Petroleum Institute and if department of energy does confirm that in the evening you might see some more buying happening in case of crude prices. USD 47 to USD 50 per bbl is an immediate range.
There is buying back in case of Japanese Yen and US Dollar on speculation that the stress in US will signal more bank losses so markets at this point are awaiting clarity on US banks and also automaker Chrysler and that is what is holding the market here.
Commodity currencies like Australian dollar, New Zealand dollar, there has been a bit of sell off there, on trade outlook and slower inflation but the Asian currencies have had a good day especially in case of Korean won and rupee which have seen a bit of gains not so much for ringgit and Thai Baht which have seen a sell off. Our own Indian rupee also has seen first day of gains after those five days of losses in the market.
But important data coming out in the evening, you have the UK labour statistics coming also the US mortgage market index and Geithner speech also in the evening is one event that the market would want to hear on too.
In case of commodities it is crude which has come back off five week lows at this point in time. The May contract expiry saw a low of USD 43.83 cents per barrel as well but the June contract that you are watching at this point is above USD 48 per barrel. Markets have seen a surprise unexpected decline in case of crude inventories as reported by the American Petroleum Institute and if department of energy does confirm that in the evening you might see some more buying happening in case of crude prices. USD 47 to USD 50 per bbl is an immediate range on that but apart from that if you look at the demand that continues to be an issue the Chinese imports have declined 5.5%, Japanese imports down 18%, South Korea down 15% so not too much of a demand coming in and supplies still on the higher side.
