Foreign Exchange Market Update

April 24, 2024

United States (U.S.): Crude Oil Inventories Unexpectedly Pull Back Sharply; Durable Goods Orders Surge More Than Expected in March

Crude oil inventories in the U.S. unexpectedly pulled back sharply in the week ended April 19, according to a report released by the Energy Information Administration. The EIA said crude oil inventories plunged by 6.4 million barrels last week after jumping by 2.7 million barrels the previous week. Economists had expected crude oil inventories to increase by 1.6 million barrels. At 453.6 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year. The report also said gasoline inventories edged by 0.6 million barrels last week and are about 4% below the five-year average for this time of year. Meanwhile, distillate fuel inventories, which include heating oil and diesel, increased by 1.6 million barrels last week, but are about 7% below the five-year average for this time of year. 04/24/2024 - 10:52:00 (RTTNews)

With orders for transportation equipment showing a substantial increase, the Commerce Department released a report on Wednesday showing new orders for U.S. manufactured durable goods surged by more than expected. The report said durable goods orders soared by 2.6% in March after climbing by a downwardly revised 0.7% in February. Economists had expected durable goods orders to spike by 2.3% compared to the 1.3% jump that had been reported the previous month. Excluding the surge in orders for transportation equipment, durable goods orders crept up by 0.2% in March after inching up by 0.1% in February. Ex-transportation orders were expected to rise by 0.3%. 04/24/2024 - 08:38:00 (RTTNews)

United Kingdom (U.K.): Manufacturers' Sentiment Improves in April: CBI

British Pound traded at 1.2439 against USD at 9:00 am PST.

Confidence among British manufacturers improved in April and their output expectations hit the strongest in six months, the latest quarterly Industrial Trends Survey results from the Confederation of British Industry showed. The business sentiment indicator rose to +9% in the quarter to April from -3% in January. Export optimism for the year ahead also advanced in April, with the index rising to +6% from -20%.

Further, the survey showed that new orders dropped at a slower pace in April. The corresponding index posted -6% compared to -13% in January. A net 8% of manufacturers expect orders to return to growth over the next three months. A net 3% of respondents said output volumes increased in the quarter to April, up from -10% in three months to March. A balance of 11% said volumes will rise over the coming quarter. Average cost growth remained elevated compared to historical norms. The indicator measuring average costs per unit of output posted 39% compared to 43% in January. A net 42% expects cost growth to rise in the quarter to July. Further, manufacturers plan to raise investment over the year ahead. The index improved to +15% in the quarter to April, the strongest since January 2022.

Germany: Ifo Business Confidence Near 1-Year High

Germany's business sentiment strengthened for the third month to a near one-year high in April on a notable improvement in confidence among service providers. The business confidence index climbed to 89.4 in April from a revised 87.9 in March, monthly survey results from the ifo Institute showed on Wednesday. This was the highest score since May 2023, when the reading was 91.4. Economists had forecast the index to rise less markedly to 88.9. Companies were more satisfied with their current situation and their expectations brightened further. The current situation index advanced to a five-month high of 88.9 from 88.1 in March, while the reading was forecast to rise moderately to 88.7. Likewise, the expectations indicator posted 89.9, up from 87.7 the previous month. The score was also above the expected level of 88.9. 04/24/2024 - 08:50:00 (RTTNews)