Daily Forex Spot
Highlights
FX return analysis
Gold hurtling towards 2013 lows
Fundamental focus: UK and Europe
BOJ to stand pat
Clarity needed from the Fed
FX return analysis
The USD was the star performer last week, gaining against all of its G10 counterparts. The dollar index broke above 84.10 - a key resistance level - to the highest level since mid-2010. Interestingly, the dollar pushed higher even though there were some soft economic data points from the US last week including weaker inflation and initial jobless claims. The key driver of the stronger buck appears to have been some hawkish comments from Fed speakers. San Francisco Fed speaker John Williams and Charles Plosser both said that QE could end by 2014. Although Williams and Plosser are not voting members of the Fed this year, their ...
It's another key day for US economic data. As debate heats up about the timing of a possible exit of QE3, economic data is becoming even more important. Today's highlights include inflation, initial jobless claims, housing starts and Philadelphia Fed survey. Inflation and labour market data are critical inputs for QE3, while the recovery in the housing market is necessary for economic momentum to continue and the Philly Fed is worth watching as it is one of the first May data releases.
Market expectations:
Inflation: headline prices expected to fall to 1.3% due to weak gasoline prices, and core prices to fall a notch to 1.8% - a 2 year low. This is below the Fed's target of 2%.
Initial jobless claims: expected to rise to 330k, up slightly from last week's 323k, but still close to a 5-year ...
Gold Prices edged higher on Tuesday trading session after falling in the previous session, buoyed by a softer U.S. dollar. Yet gains may be capped as holdings in gold-backed exchange traded funds are expected to further drop after hitting its lowest since July 2011 on Friday.
As of (09:32 GMT+3), spot gold inched up 0.49 percent or 7.10 points to trade at $1,441.00, after opening at $1,430.87, having earlier hit a high of $1,445.19, and a low of $1,429.88.
Among other commodities, silver and platinum tracked gold’s gains. Reports showed that China`s demand for platinum rose about 16 percent as lower prices drew buyers’ interest in the metal.
- Silver rose 0.10% to trade around 23.77
- Platinum gained 0.87% to 1,496.30
-Palladium inched 0.63% higher to 723.05
Precious-gold plunged on ...
Gold prices dropped on Monday, setting the longest drop since April 4, as holdings in gold-back exchange traded funds slumped to the lowest since July 2011.
Spot Gold dropped around 1 percent to $1433.32 per ounce, after it earlier hit a low of $1425.80. Gold futures dropped to $1432.10 per ounce, from an opening at $1447.80. As of 11:40 New York Time
Speculators held 67,374 so-called short contracts on May 7, 6.4 percent more than the week before, according to data from the U.S. Commodity Futures Trading Commission released on May 10. The net-long position dropped 10 percent to 49,260 futures and options.
Also, Money and hedge fund managers withdrew $1.27 billion from gold and precious-metals funds in the week ended May 8, according to Cameron Brandt, the director of research for ...
Title:
The Week Ahead : 11/05/2013
Highlights
FX return analysis
Fundamental Focus: Europe
Another leg lower for JPY as Japanese investors seek yield
What recent US data means for the buck
FX return analysis
It was a wild ride for FX markets at the end of last week. The dollar surged, the yen slumped and some G10 crosses breached key technical levels. Volatility also picked up, 1-month implied volatility in JPY jumped from 11.98% on 2nd May, to 12.95% on 10th May. Other currencies that were notably more volatile last week versus the dollar include NZD and the AUD.
The dollar has been by far the strongest performer in the G10 over the past month, while the Aussie has overtaken the yen as the weakest performer versus the USD over the past month. The yen jumped ahead of the CHF, NZD and SEK, who all performed worse than the ...
Morning Briefing : Draghi shows ECB dtermination, Euro slips
What's new :
Asia: Equity indices mixed, while the US counterparts closed in positive yesterday
ECB: cuts refinancing rates and marginal lending rates
US: Payrolls data eyed for USD moves
Overnight rates and Indices:
EUR/USD 1.3056 1.3113 0.23 %
USD/CHF 0.9327 0.9353 0.13 %
GBP/USD 1.552 1.5546 0 %
USD/JPY 97.9 98.11 -0.12 %
EUR/CHF 1.2209 1.22323 -0.10 %
EUR/JPY 127.87 128.55 -0.35 %
Dow Jones 14700.95 14834.63 0.88 %
Nasdaq 2877.26 2916.30 1.31 %
S&P 500 1582.77 1598.60 0.94 %
Nikkei 225 13637.96 13780.48 -0.76 %
Shanghai 2179.05 2222.81 1.45 %
Gold spot 1465.93 1478.08 0.72 %
Crude Oil 93.66 93.99 -0.30 %
...
Gold rose on Thursday after the European Central Bank (ECB) cut its interest rate for the first time in 10 months and President Mario Draghi said the central bank is technically ready for negative deposit rates.
Spot Gold was at $1468.02 per ounce as of 11:38 New York Time, from an opening of $1457.28. Gold’s recent bounce has tested major resistance areas in recent days, particularly around the 1478.00 level; however, trading is limited in the range between 1448 and the 1480.
Lower interest rates favour gold as they encourage investors to put money into non-interest-bearing assets like the metal.
The metal had shed more than 1 percent in the previous session -- its biggest daily drop since bullion`s historic decline in mid-April -- to a low of $1,439.74, the weakest since April 25.
...
Gold prices fell Tuesday as traders turned to more risky assets like equities after the outflow from the biggest exchange-traded fund (ETF) increased, and a rise in the U.S. dollar weighed on the metal.
Spot gold fell to $1415.87 per ounce after opening at $1424.71, having earlier hit a low of $1404.90 and a high of $1432.65 per ounce. As of 12:18 New York time
U.S. gold futures for June delivery were down 0.9 percent to $1,408.30.
U.S. stock markets rallied Tuesday in the wake of storng earnings results from major corporates.
Holdings of SPDR Gold Trust, the world`s largest gold-backed exchange-traded fund, plummeted 1.6 percent to the lowest level since November 2009 at 35.51 million ounces. That followed daily falls of less than 1 percent in the past week.
The U.S. dollar rose ...
It's been a week of big moves, and yesterday was the euro's turn to impress. EURUSD has jumped 100 pips after dipping below 1.3050 post the gold sell off on Monday. What has been interesting is that if the gold/ commodity sell off is on the back of growth and deflation fears then the euro's resilience has been impressive. On a purely fundamental basis there is a good case to call the euro lower, for example in the last 24 hours we have seen very weak data out of Germany including the weakest ZEW since the start of the year and a 17% plunge in new car registrations for March, which was worse than the overall level for the currency bloc. However, FX markets often don't move on the back of growth alone, and in an era of QE yield differentials can drive the market in a different direction from ...