As Dollar Retreats

(Reuters) - Gold prices retreated towards $1,650 an ounce in Europe on Wednesday after a downbeat reading of euro zone manufacturing activity contrasted with stronger data from the United States, pushing the euro lower versus the dollar. Spot gold was down 0.4 percent at $1,654.49 an ounce at 05:15 a.m. EDT (0915 GMT), while gold futures for June delivery were down $6.70 an ounce at $1,655.70. The precious metal traded in its tightest monthly spread since last June in April and remains firmly within the $1,620-1,670 range, awaiting fresh impetus from the wider financial markets and economic indicators. Jobs data at 1215 GMT will be closely watched as a precursor to a key non-farm payrolls report on Friday. A weak report would lift expectations for more monetary stimulus. "With economic ...

(Reuters) - World stocks fell and gold prices dropped 2 percent on Tuesday as minutes from the latest U.S. central bank meeting showed policymakers may be less willing to launch further economic stimulus. The dollar rose 1 percent against the yen, while safe-haven bonds slid. Federal Reserve policymakers, in their March meeting minutes, noted recent signs of slightly stronger growth but remained cautious about a broad pick-up in U.S. economic activity. Still, the minutes suggested the appetite for another dose of stimulus via quantitative easing, so-called QE3, has eased. The MSCI world equity index .MIWD00000PUS dropped 0.4 percent, while the benchmark S&P 500 had its worst day in a week. "There have been signs of strength in manufacturing and employment. That has the Fed taking a ...

Asian shares fell for the second straight day on Thursday as concerns about growth prospects in the world's two largest economies, the United States and China, prompted investors to trim their risk exposure ahead of the end of the quarter. European equity markets were expected to track Asian markets lower, with financial spreadbetters predicting major European markets .FTSE .FCHI .GDAXI to open down 0.1 to 0.3 percent. U.S. stock futures were steady. .EU .L .N Commodity-linked assets were hurt, with crude oil extending losses and dragging oil-related Chinese shares lower, while weakness in Chinese markets weighed on the Australian dollar due to worries of lower demand from Australia's single largest export market. But a weaker Aussie lent some support to shares, making Australian ...

The US dollar largely maintained its recent gains against the euro throughout yesterday's trading session, as a batch of positive US data continued to boost confidence in the American economic recovery. The EUR/USD spent much of the day trading around the 1.3050 level, after dropping as low as 1.3002 during Asian trading. As we begin to close out the week, traders will want to pay attention to two US indicators set to be released today. The Core CPI, set to be released at 12:30 GMT, and the Prelim UoM Consumer Sentiment figure, scheduled for 13:55 GMT, are both considered valid indicators of economic health and could help the dollar extend its gains. Economic News USD - USD Retreats Slightly vs. Yen After breaking the psychologically significant 84.00 level during Asian trading ...

(Reuters) - Gold prices snapped three days of losses to rise in Europe on Wednesday, helped by a recovery in the euro versus the dollar, which eased negative currency effects on the precious metal, and by demand for physical gold at lower prices from Asia. Spot gold was up 0.5 percent at $1,681.75 an ounce at 1025 GMT, while U.S. gold futures for April delivery were up $10.90 an ounce at $1,683.00. The metal is down more than 6 percent since late February, having dropped sharply from the year's highs after U.S. Federal Reserve chairman Ben Bernanke held off signaling a further round of U.S. monetary easing in a key speech. "Open interest has fallen dramatically over the last week, indicating that many if not most of the longs that were initiated above $1,700 during the last month have ...

Following significant euro movements throughout last week's trading session, analysts are once again forecasting volatility for the common-currency in the coming days. In addition to several debt auctions out of the euro-zone and a meeting of euro-zone leaders to give final approval to the Greek bailout package, the US Non-Farm Employment Change figure is set to generate heavy market activity this week. Today, the US ISM Non-Manufacturing PMI should provide traders with a valid indicator of US economic health. A better than expected figure may boost the greenback. Economic News USD - Dollar Sees Major Gains to Close out Week The US dollar moved up against virtually all of its main currency rivals last week, as poor fundamental news out of both the euro-zone and Japan sent investors to ...

The euro had a bullish day yesterday, after news was released that Greece had reached an austerity deal led to a spike in risk taking. The EUR/USD spent much of the day at or above the 1.3300 level after dropping to 1.3220 a day earlier. Today, traders will want to continue monitoring any announcements out of the euro-zone as they are likely to give clues as to where the markets will be heading. In addition, trade balance reports from both the US and Canada are likely to generate market volatility. Economic News USD - USD Retreats vs. Riskier Currencies, Sees Gains against JPY The US dollar saw a mixed trading day yesterday, as positive news boosted risk taking in the marketplace which led to gains for currencies like the euro and British pound. News that the Bank of England will ...

(Reuters) - The euro rose to a two-month high against the dollar on Wednesday, supported by optimism Greek leaders are close to agreeing on reforms needed to secure a second bailout and avoid a messy default despite slow progress in talks. Greek leaders will meet again on Wednesday in a bid to strike a deal on painful austerity steps in return for another international rescue package, following a string of delays in negotiations. Analysts said the euro could test $1.33 and push as high as $1.35 if a deal is finalized. But it was seen as unlikely to sell off sharply even if talks drag on for another day, given sizeable euro short positions that investors are reluctant to add to before knowing the outcome of negotiations. The single currency was last up 0.1 percent at $1.3275, having hit ...

(Reuters) - Gold prices steadied in Europe on Monday as a retreat in the dollar took some early selling pressure off the metal, with trading cautious ahead of a meeting between the French and German leaders on the euro zone economy later in the day. Spot gold was little changed at $1,617.29 an ounce at 1110 GMT versus $1,616.98 late in New York on Friday, up from an earlier low of $1,604.44. U.S. gold futures for February delivery were up $1 an ounce at $1,617.90. While confidence in gold's ability to revisit last year's record high above $1,920 an ounce was shaken by a 10 percent price drop in December, rock-bottom interest rates and concerns over debt levels and growth remain supportive, analysts said. "It's hard to point to any negative factors for gold," said Saxo Bank senior ...