You're listening to Markets Desk, your midday read on what's moving markets and why.
Crude oil is bouncing back sharply today, with WTI climbing over one percent after hitting a three-and-a-half month low earlier this week. The catalyst is a meaningful drawdown in domestic US supply inventories, pulling buyers off the sidelines and triggering technical buying pressure that had been building.
Shifting to the currency markets, the dollar index is edging higher after better-than-expected retail sales and pending home sales data out of Washington gave traders a reason to cover short positions ahead of the Federal Reserve's rate decision today. The data suggests the consumer isn't rolling over quite yet, and that's giving the greenback a modest but real bid.
Meanwhile in soft commodities, arabica and robusta coffee futures are both pushing to fresh five-week highs as persistent rainfall across Brazil threatens to delay the harvest. Brazil remains the world's dominant arabica producer, and any disruption to harvest timing tightens the near-term supply picture fast, which is exactly what traders are pricing in right now.
That's the tape. Markets Desk, signing off the floor.
