By Mexgroup.com

Dollar Steadies After Edging Back from 10-Week Peak. The dollar steadied on Tuesday after edging away from a 10-week high overnight, taking support from underlying expectations that improved prospects for the U.S. economy would prompt the Federal Reserve to raise interest rates later this year. The dollar index was a shade higher at 93.720 after dipping about 0.15 percent overnight.

Kiwi Falls Against Other Majors after German Data. Signs of risk aversion were seen in the New York session as equities dipped and bitcoin surged, leaving the higher-yielding Kiwi to suffer the brunt of the losses. Political concerns ebbed in Spain and the UK and figures showed stronger-than-expected German production pushed the New Zealand dollar to a low of US$0.7055, to 1.6640 against the euro and to 1.8600 against the pound.

Sterling Maintains Lead as Worries of UK Political Turmoil Subside. U.K. Prime Minister May had a brief meeting with business leaders and assured them that they can count on a two-year transition period, and that the U.K. will retain access to the single market on current terms. Sterling had a stellar performance in the earlier session and was able to squeeze out a few more gains before pausing from its climb as profits were locked in. Pound rallied to a high of 1.3188 before retreating to 1.3129.

Gold Rises on Geopolitical Risks. Investors moved towards safer investments as the US dollar saw a mixed performance after Russian media reported that North Korea is planning in the upcoming period to test long-range missile attacks that can reach the west cost of the US. Gold prices rose for three consecutive days and last closed at $1,284.9 per ounce.

Oil Prices Climb After OPEC Signals Possible Deal Extension. Oil prices rose slightly on comments by OPEC’s secretary general that indicated further possible extension of a production agreement beyond March 2018 and possible cuts in crude production. Crude settled at $49.58, up 29 cents on the day, while Brent rose 17 cents to settle at $55.79 per barrel. Oil production platforms in the Gulf of Mexico also started returning to service after Hurricane Nate forced the shutdown of more than 90 percent of crude output in the area. The prospective restarts kept price gains in check.

By MEX Group Team

The post U.K. PM May Assured Businesses of Two-year Transition Period; Oil Gains on Possible Production Cuts 10-10-2017 appeared first on mexgroupblog.