Oil Jumps most in 6 years, Good US data, Fed Rate Hike back on agenda?

[Raam]

RELIEF RALLY: Oil Jumps most in 6 years, Good US data, Fed Rate Hike back on agenda?

QUOTE: Don't walk behind me; I may not lead. Don't walk in front of me; I may not follow. Just walk beside me

MARKET PULSE The USD headed for its first weekly advance against the euro in 1M USD appreciated 1.2 % during the past week to $1.1263 vs. EUR U.S. data: 2Q GDP 3.7% vs estimated 3.2% U.S. personal consumption 3.1% in line with estimates U.S. weekly jobless claims 271k vs estimated274k U.S. pending home sales 0.5% vs estimated 1.0%, y/y U.S. GDP shows divide between rebound in growth and incomes Fed's Jackson Hole symposium kicks off Kansas City Fed President George: " Too soon to tell if market volatility will affect the U.S" Today: Euro-zone economic confidence, U.K. GDP and German inflation data France's Macron pledges to make labor market more flexible Ukraine wins debt relief as Russia refuses to join agreement Inflation vanishes in Japan for 3rd time this year as oil drops China expands debt swap quota to 3.2 trillion CNY ($500b) Relief rally spreads across markets as oil jumps most in 6 years Today: China industrial profits & Japan jobless and CPI China FM Lou : China will struggle to meet 2015 fiscal revenue target IMF could contribute a 5th to Greek bailou: ESM's Regling Greece's Thanou sworn in as caretaker PM ahead of elections (First female PM) EU's Moscovici sees 2015 euro region growth around 1.5% India -July key industries output data expected, prior was +3.0% y/y WTI heads for biggest wkly advance since April after rising most in 6Y Saudi King to visit Obama as Congress ponders Iran nuclear deal Total CEO:"Crude prices to stay low for 'some time'" Venezuela pushes for emergency meeting on falling oil price No change in oil products imports policy: Libya Tripoli NOC Iran Oil Minister: Iran seeks return as OPEC No. 2 Today Baker Hughes U.S. rig count for Aug 28, prior 885 Crude inventories in U.S, fell by 5.45 M barrels to 450.8 M Crude remain about 90 M barrels above the5-year seasonal average INR MARKETS INR flat at 66.10 down 0.3% so far this week-3rd weekly decline 1Mvolatility slips 30 bps to 7.9450%; 12M average at 6.7320% INR 1M forwards drop 0.1% to 66.46 USD/INR Pivot point at 66.0175 USD/INR support at 65.8900, 65.7350 & 65.4525 USD/INR resistance at 66.1725, 66.3000 & 66.5825 USD/INR 14-day RSI at 70, hovering at overbought threshold FACTORS Note on monetary policy committee ready-Junior FM Sinha Global investors sold net $366.7 m of Indian stocks on Aug.26 India's leading stock index Sensex rose 2% yesterday India -July key industries output data expected, prior was +3.0% y/y Soc Gen raises USD/INR forecasts by 1 INR (USD/INR at 65.50 in 4Q) INR was set to drop for a 3rd week on USD month-end demand INR slumped 3.4 % in 3W after the fallout of CNY USD Spot Index rose 0.4 % on stronger-than-expected U.S growth FOREIGN EXCHANGE MARKETS USD on its first weekly advance against the EUR in more than a month USD/JPY -0.06% at 120.96 (range 120.93-121.31) EUR/USD +0.17% at 1.1265 (range 1.1232-1.1265) AUD/USD +0.18% at 0.7179 (range 0.7164-0.7206) USD/CAD -0.14% at 1.3181 (range 1.3167-1.3206) GBP/USD +0.22% at 1.5437 (range 1.5401-1.5442) USD/CHF -0.14% at 0.9649 (range 0.9647-0.9667) U.S. Treasuries gain, with 10-year yield down 1 bp at 2.177% FACTORS The USD headed for its first weekly advance against the euro in 1M USD appreciated 1.2 % during the past week to $1.1263 U.S. data: 2Q GDP 3.7% vs estimated 3.2% U.S. personal consumption 3.1% in line with estimates U.S. weekly jobless claims 271k vs estimated274k U.S. pending home sales 0.5% vs estimated 1.0%, y/y U.S. GDP shows divide between rebound in growth and incomes Fed's Jackson Hole symposium kicks off Kansas City Fed President George: " Too soon to tell if market volatility will affect the U.S" Today: Euro-zone economic confidence, U.K. GDP and German inflation data France's Macron pledges to make labor market more flexible Ukraine wins debt relief as Russia refuses to join agreement Inflation vanishes in Japan for 3rd time this year as oil drops China expands debt swap quota to 3.2 trillion CNY ($500b) Relief rally spreads across markets as oil jumps most in 6 years Today: China industrial profits & Japan jobless and CPI China FM Lou : China will struggle to meet 2015 fiscal revenue target IMF could contribute a 5th to Greek bailou: ESM's Regling Greece's Thanou sworn in as caretaker PM ahead of elections (First female PM) EU's Moscovici sees 2015 euro region growth around 1.5% GOLD MARKETS Gold fell 2.7 % this week, the first weekly loss in 3 weeks Gold spot flat at $1,126.27 in Asian hours Gold futures Dec added 0.3 % to $1,126 a 2.9 % weekly decline Silver spot climbed 0.4 % to $14.5530 FACTORS Gold headed for the biggest weekly decline in a month A report showed the U.S. economy grew stronger than expected in Q2 ANZ:"The stronger USD and improving sentiment saw support for gold wane," CRUDE OIL MARKETS WTI rises as much as 2.1%, extending wkly advance Brent Oct rose 89 cents, or 1.9 %, to $48.45 Brent Oct up 6.5 % this week most since April Brent traded at a premium of $5 to WTI, vs. $5.01 on Aug. 21 WTI Oct up 90 cents to $43.46, opened at $43.41 in Asia WTI rose $3.96 to $42.56 on Thu WTI prices have climbed 7.3 % this week. Volume of all futures traded was double the 100-day average FACTORS WTI heads for biggest wkly advance since April after rising most in 6Y Saudi King to visit Obama as Congress ponders Iran nuclear deal Total CEO:"Crude prices to stay low for 'some time'" Venezuela pushes for emergency meeting on falling oil price No change in oil products imports policy: Libya Tripoli NOC Iran Oil Minister: Iran seeks return as OPEC No. 2 Today Baker Hughes U.S. rig count for Aug 28, prior 885 Crude inventories in U.S, fell by 5.45 M barrels to 450.8 M Crude remain about 90 M barrels above the5-year seasonal average