Oil continues its gains despite the increase in US inventories
Oil prices rose during trading today, Wednesday, continuing their gains, in light of optimism about Chinese demand, despite the increase in US inventories.

The government agency revealed that oil stocks in America increased by 2.4 million barrels to 455.1 million barrels, while expectations indicated an increase of two million barrels.

Gasoline stocks rose by five million barrels to 239.6 million barrels, while distillate stocks rose by about 2.9 million barrels to 120.5 million barrels.

In terms of transactions, US NYMEX crude futures for March delivery rose by 20:34 GMT, by 1.7%, to $78.4 a barrel.

Brent crude futures for April delivery rose 1.7% to $85.1 a barrel.

What's next for oil prices?

It is expected that oil prices will continue to rise in the coming period, especially after expectations made by the International Energy Agency, led by its director, Fatih Birol, who predicted that China’s reopening of its economy would revive demand, and therefore, producers would be forced to reconsider their production policies.

Gold is rising for the fourth consecutive day based on the decline in the US dollar
Gold prices rose in the European market on Thursday, to continue their gains for the fourth day in a row, with recovery operations continuing from the lowest level in five weeks, and based on the decline in US dollar levels against a basket of global currencies.

In contrast to corrections and profit-taking, US currency levels are declining, following less hawkish statements by Federal Reserve Chairman Jerome Powell at the Economic Club in Washington, which slightly reduced the pricing of futures contracts for the possibility of raising interest rates next March.

Gold prices today

Gold metal prices rose by more than 0.5% to $1,885.46, from the opening level of trading at $1,975.58, and recorded the lowest level at $1,972.04.

Yesterday, gold prices increased by 0.1%, the third consecutive daily gain, with recovery operations continuing from the lowest level in five weeks, at $1,860.17 an ounce.

U.S. dollar

On Thursday, the dollar index fell by about 0.5%, moving away from its highest level in a month at 103.96 points, reflecting the decline in the levels of the US currency against a basket of major and minor currencies, which is in favor of the rise in the prices of gold and other metals priced in US dollars.

Federal Reserve Chairman Jerome Powell reiterated at the Economic Club of Washington on Tuesday that inflation is beginning to decline, but he warned that last week's jobs report shows why the battle against inflation will take so long, and that interest rates may need to move higher than expected.

Federal interest

Based on Powell's comments and other comments by some Federal Reserve officials, the futures contract pricing for the possibility of raising US interest rates by 25 basis points in next March decreased from about 94% to 90%.

In order to re-price those contracts, traders are awaiting next week the release of key inflation data in the United States during January, which, if it shows a slowdown in prices for the seventh month in a row, will lower the pricing of contracts above.

SPDR Fund

Gold holdings of the SPDR Gold Trust, the largest global index fund backed by gold, increased yesterday by about 0.28 metric tons, in the second consecutive daily increase, bringing the total to 921.1 metric tons, which is the highest level since last October 28.

Will gold prices rise above the $1,900 mark again?

It is not excluded that gold prices will rise above the $1,900 barrier, especially if the decline in the dollar and US bond yields continues, following the less aggressive statements of Federal Reserve Chairman Jerome Powell.

The dollar is heading lower amid corporate earnings flow
The dollar declined against most of the major currencies during trading today, Wednesday, amid the continued issuance of corporate business results and the evaluation of the statements of Federal Reserve Chairman Jerome Powell.

In the same statements he made yesterday, Powell confirmed that the jobs report was stronger than expectations for January.

He reported that the message from the Monetary Policy Committee at last week's meeting is that the slowdown in inflation has already begun, but there is still a long way to go.

In this regard, the head of the Federal Reserve believes that the US central bank may be forced to make more interest-raising decisions

The Federal Reserve announced in a decision on Wednesday that it will raise the interest rate by 25 basis points to 4.75% from 4.50%.

The Fed's slowdown in the rate hike came in light of the emergence of signs of slowing inflationary pressures in the US economy

In the past few hours, the results of the business of Uber Technologies were released, through which it recorded strong revenues

In terms of trading, the dollar index fell by 19:09 GMT by 0.1% to 103.3 points, recording the highest level at 103.4 points and the lowest level at 103.00 points.

The euro rises before the economic outlook report in Europe
The euro rose in the European market on Thursday against a basket of global currencies, as part of the recovery process from its lowest level in four weeks against the US dollar, on its way to achieving its first gain in the last six days, before the quarterly report of the European Commission, which includes economic expectations in the eurozone. for two years.

The strong expectations will help the single currency to continue its recovery, and enhance the possibility of the European Central Bank continuing to raise interest rates at a significant pace, after the expected increase in next March by about 50 basis points.

Euro exchange rate today

The euro rose against the dollar by about 0.4% to $1.0750, from the opening price of trading at $1.0710, and recorded the lowest level today at $1.0706.

The euro ended yesterday's trading down by 0.15% against the dollar, its fifth daily loss in a row, and recorded the previous day its lowest level in four weeks at $1.0669 due to European interest speculation.

European interest

The meeting of the European Central Bank last week increased speculation about the bank's halt in raising European interest rates at a large pace, after the increase he referred to in March next by about 50 basis points.

The ECB has been firm in stressing that interest rates will certainly rise further at the March meeting and are likely to rise again in the following months, albeit in as yet unspecified increments.

Economic forecasts

By 10:00 GMT, the European Commission publishes its quarterly economic outlook report, which includes forecasts for growth and inflation in Europe over the years 2023 and 2024.

A strong economic outlook in the eurozone could allow the European Central Bank to raise interest rates more aggressively as it tackles high inflation in the old continent.

The sterling and the franc are at the top of the list of the most valuable currencies for these reasons!

The pound sterling recorded clear gains during the currency market trading today, Wednesday, to top the list of winning currencies by an estimated rate of 1.89%, benefiting from some positive developments that boosted the demand for sterling compared to some other major currencies, led by the mini-ministerial reshuffle in Britain.

British Prime Minister Rishi Sunak has made minor cabinet reshuffles, including dismantling two ministries, to better fit his pledges to stimulate the economy and improve the Conservative Party's popularity ahead of elections expected next year. Sunak also established a new Ministry of Energy Security, as the British Prime Minister is trying to steer the economy through a long period of inflation that exceeded 10% and stagnation, a situation that was exacerbated by the increase in the cost of energy, and these amendments reinforced optimism in the markets about the British economy and the government's ability to deal with Difficult conditions, which led to sterling gains against other currencies.