Forexpros –
Forexpros – Crude oil futures declined marginally in Asian trade Wednesday, after the release of data showing a better than expected performance from the U.S. service sector.
On the New York Mercantile Exchange light, sweet crude futures for October delivery traded at USD86.34 a barrel during early Asian trade, falling 0.06%, after hitting a daily high of USD86.59.
Earlier Tuesday, the U.S. Institute of Supply Management reported its non-manufacturing purchasing manager’s index rose by 0.6 in August to 53.3 from 52.7 the previous month.
Economists had forecast the index to fall to 51.0 for the month.
An ISM manufacturing index above 50.0 indicates expansion in the non-manufacturing sector, while below 50.0 is a sign of general contraction.
U.S. service sector activity accounts for 75% of all U.S. economic activity, and is a key determinant to gauging future energy demand from the world’s largest oil consumer.
Earlier Tuesday, the Swiss National Bank set a floor for EUR/CHF at 1.20 in an effort to lessen the negative effects a strong currency would have on exports.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose to a daily high of 76.11 before falling 0.20% to 75.92.
Dollar-denominated futures contracts tend to fall when the dollar rises as oil future purchases become more expensive for investors who hold other currencies.
On the ICE Futures Exchange Brent oil futures for October delivery fell 0.21% to trade at USD112.97.
Due to the U.S. Labor Day holiday, the American Petroleum Institute and the Department of Energy’s Energy Information Administration delayed by a day their reports on energy inventories.
The API is scheduled to release its numbers later Wednesday, while the EIA is slated to release its data on Thursday.
Forexpros
