Natural Gas Prices Fell
Natural Gas prices fell below $8.0 mark amid prospects of weakening air-conditioning demand due to less hot weather and after EIA reported a bigger-than-expected gas storage build last week. Data showed US utilities added 41 billion cubic feet of gas to storage during the week ended July 29th, well above expectations of 29 bcf. Also, Freeport LNG, a key export terminal in Texas, agreed with regulators to restart as soon as October. Meanwhile, demand from Europe continues to support prices as the key Nord Stream 1 pipeline from Russia to Germany is currently running at 20% capacity. The first resistance to be tested is $8.11 and first support on a decline is $7.02 Level.
The dollar index held steady above 106 on Tuesday, hovering near recent highs, as traders looked ahead to US inflation data later in the week that could offer more clues on the Federal Reserve’s rate hike path. Economists are expecting the annual inflation rate to have eased to 8.7% from 9.1% in June, and a significant downward surprise could ease some pressure on the Fed and drive the dollar lower. A New York Federal Reserve survey released Monday pointed to a sharp decline in American consumers’ inflation expectations for the coming year and the next three years. Meanwhile, data last week showed that the US economy unexpectedly added 528,000 jobs in July, more than double the 250,000 jobs economists predicted, raising bets that the Fed will deliver another 75 basis point rate hike in September.