Oil prices fall on strong dollar, Brent near one-month low- 5 Feb 2018

Gold Dips In Asia As Dollar Direction Eyed With Steeper Yield Curve.  

Gold prices eased in Asia on Monday despite a stronger reading on the consumer- demand side in China as sentiment on the dollar is weighed with a steeper yield curve. The UK is to release data on service sector activity. Later Monday, ECB head Mario Draghi is to testify on the central bank’s Annual Report for 2016 before the European Parliament. Investors will also be looking to political wrangling in Washington over the country’s finances ahead of the Feb. 8 spending deadline and the debt ceiling issue. In what is set to be a relatively light week on the economic calendar, central bank meetings in the UK, Australia and New Zealand will also be in focus. Last week, gold prices fell on Friday as the dollar strengthened after the latest U.S. jobs report showed that the economy added more jobs than forecast in January and wage growth accelerated. 

Copper dropped as the dollar rose after U.S. jobs growth surged in January and wages rose, recording their largest annual gain in more than 8-1/2 years.  

Copper on MCX settled down -0.43% at 452.75 as the dollar rose after U.S. jobs growth surged in January and wages rose, recording their largest annual gain in more than 8-1/2 years. Three-month LME copper shed 1 percent to finish at $7,045 a tonne, retreating from the highest in a week at $7,188.50. Growth in China’s manufacturing sector remained elevated in January, a private survey showed, though it contrasted with an official survey pointing to a slight loss of momentum. Asia’s factories got off to a strong start in 2018, with manufacturing activity in many countries hitting multi-year highs as global demand for hi-tech products remained strong. Glencore said copper output in 2018 should rise to nearly 1.5 million tonnes as its Katanga mine in Democratic Republic of Congo ramps up to add roughly 150,000 tonnes. Copper has the smallest speculative long position of the LME complex at 4.3 percent of open interest. 

Oil prices fall on strong dollar, Brent near one-month low.  

Oil prices on Monday extended declines from the end of last week amid a wider market sell off and a stronger dollar, with Brent crude falling to its lowest in nearly a month. Other markets dropped as investors were spooked by Friday's payrolls report from the United States, which showed wages growing at their fastest pace in more than 8-1/2 years, fuelling inflation expectations."Oil is caught up in this general risk-off move, not helped at the margins by a little bit of strength in the U.S. dollar," said Ric Spooner, chief market analyst at CMC Markets in Sydney. Asian shares were down the most in more than a year on Monday as fears of resurgent inflation battered bonds. Wall Street dropped last week from record highs as inflation concerns sparked speculation that central banks globally might be forced to tighten policy more aggressively. The three major U.S. indexes capped their worst weekly losses in two years, after closing at record highs the previous week. 

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