Oil Hits New 5-Month Lows

U.S. 10-year Treasury bond yields moved back towards 5-month
lows today, as prices rose ahead of September 11’s fifth-year anniversary.
Prices have been on the rise over the summer as the Fed initiated a rate pause,
spurring speculation that the Fed is done with its tightening cycle.
Inflationary data this week pointed to a growing economy, which could lead the
Fed to raise rates in the middle of the month.

The dollar advanced against the yen and the euro today, amid
speculation that the Fed will increase rates on September 20th, their next
meeting. The dollar showed weakness against the yen and euro after the
June meeting, when the Fed paused rate hikes. The ECB looks to raise rates
at least once before the year is out, and Japan has wavered in its position
about the need to contain inflation. Economic reports in the U.S. this
week showed that investors may have been hasty to assume a broad economic
slowdown, which has boosted the dollar during this week. The dollar gained
the most against the euro this week since June.

Crude oil continued to fall, losing 1.5% to close at $66.31,
new 5-month highs. Oil has been falling due to ample inventories and a
cooling geopolitical scene. Crude reached a record $78.40 in July, as
Israel waged war against Hizbollah in Lebanon, prompting fears that Iran could
remove its oil supply from the global market. However, with no major
hurricanes, no major fighting and plenty of oil to go around, crude looks to
keep dropping for the time being. Natural gas also fell, down 1.3%, as
moderate weather curbs demand for the energy commodity.

Gold fell 1.2% as oil continued to fall and demand levels
remained low for the precious metal. With the dollar on the rise and
energy concerns abating, demand for the safe-haven future has fallen to 2-month
lows. Silver fell 3% today while copper fell 2.5% on a slow housing

Softs traded mixed today. Cocoa fell 0.7% and coffee
fell 1%, while orange juice rose 0.4% and sugar rose 2.3%.

Grains traded mixed today, with corn up 0.4%, wheat down
nearly 1%, soy down 0.3% and oats up 1%.

Meats traded mixed, with cattle down 0.5% and porkbellies up


A round of foreign economic reports were released
Check them