Author: marsxxzaa

See the original post:
Gold gains on bleak U.S. data, but en route for 2% weekly fall

See the rest here: 
Gold gains on lackluster U.S. data, Brexit deal doubts

Commodities rebounded, sending equities higher, whilst Treasuries softened. Energy prices led the rally as the DOE/EIA showed that US shale output fell for a 5th consecutive month and as refinery outage lifted gasoline and diesel higher.

The rest is here:
Crude Oil Jumped for the First Time in Four Days

Headlines were dominated by the ECB’s indication of further easing in June. The sent the euro to as low as 1.3839, following an initial rally to a 2.5 year high of 1.3993. On commodities, crude oil prices softened with the front-month WTI contract losing -0.51% while the Brent crude contract was down -0.08%. Gold declined for a third consecutive day with the benchmark Comex contract slipping -0.09% during the day.

Read the original post:
ECB Members Ready to Act in June

PGM prices have remained firm, staying at the highest levels in 2 months. However, we see some risks to palladium’s outlook as the net length in the NYMEX non-commercial contracts has already risen to a record level while China’s latest 5-year clean air plan might weigh on demand for vehicles.

Read the original here: 
China’s New Plan to Combat Pollution Might Weigh on Palladium Price

Did you know that UK sterling has lost more than one third of its value against major world currencies in the past 40 years and the Great British pound is now set to take another hammering lower if Carney, the Bank of England’s new superman get’s his own way in 2013.

Latest UK Sterling Exchange Rates

As of 08:44 GMT this morning, one UK pound sterling bought 1.14930 euro and against the US dollar a pound exchanged $1.50890.

UK Inflation Numbers

The Bank of England Governor Mark Carney has been saved the embarrassment of explaining to Chancellor George Osborne how rising inflation rose to just 2.9 percent, instead of exceeding the 3.0 percent level as originally expected. Rising fuel and clothing costs in the UK led to a spike in consumer price inflation from 2.7 percent in May to 2.9 percent in June, according to the latest figures published today from the Office of National Statistics.

Carney, BOE and QE

However it remains to be seen the stance Carney will have on further QE for the British economy for the second half of 2013. More QE is going to further erode the value of UK sterling against currencies including the US dollar and euro, which will in turn push up inflation in Britain.

The previous governor Sir Mervyn King found himself outvoted six to three in the last five months of the reign against extending QE by £25bn to £400bn.

Carney has already revealed his dovishness when he hinted at a forward guidance policy on interest rates earlier this month – a strategy he has used before when governor of the Bank of Canada.

But while he has hinted at favouring more QE to help the UK reach “escape velocity”, the recent slew of good data coming from the UK may have prevented Carney from voting in this direction – for now at least.

View original post here:
UK pound sterling takes another hammering against major currencies

The ICE US Dollar Index has stabilised back around 83 early this morning following big losses on Thursday which saw the US dollar crashing lower after the US Fed’s Bernanke comments that QE in America will continue for the short term foreseeable future.

Latest US Dollar Index Rate

The ICE US Dollar Index, which tracks the dollar against a basket of major world currencies was trading at 83.165, 09:06 GMT this morning on the ICE Futures Exchange. The contract stood as high as 84.781 early on Wednesday.

Bernanke Comments

The Fed chairman spoke just three hours after the central bank released minutes of the June 18 & 19 gathering showing that about half of the 19 participants in the Federal Open Market Committee wanted to halt $85 billion in monthly QE program by year end. At the same time, the minutes showed many Fed officials wanted to see more signs employment is improving before backing a trim to QE.

In his speech in Boston on Wednesday Bernanke said this: “There will not be an automatic increase in interest rate when unemployment hits 6.5 percent. And, given the weak labour market and low inflation, it may well be sometime after we hit 6.5 percent before rates reach any significant level.” the Fed chief added.

The truth is the US Fed seems to be terrified by the gigantic losses that will materialise in its books, should long term interest rates keep rising. That may be the reason for Bernanke’s recent volte face. He is digging himself into a deeper and deeper hole and we will see if he can get out safely.

So what’s next in store for the US dollar? Many traders and investors after left wondering…

Read more from the original source:
US Dollar Index crashes back to 83 after Bernanke’s QE comments