Investing.com - Gold futures surged in the early part of Thursday’s Asian session as the Federal Reserve surprised markets by opting not to alter its USD85 billion-per-month bond-buying program known as quantitative easing.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery soared 4.28% to USD1,363.60 per troy ounce in Asian trading Thursday. The December contract settled lower by 0.14% at USD1,307.60 per ounce on Wednesday.
Gold futures were likely to find support at USD1,334.60, the high from Sept. 15 and resistance at USD1,375.
Many investors felt the Fed would announce plans to trim the amount of bonds it buys each month to spur recovery, a stimulus tool known as quantitative easing that drives down long-term interest rates and weakens the dollar to spur recovery, a recipe for rising gold prices. However, the Fed surprised markets by saying tapering of its easing efforts is tied to economic data and not the calendar.
That could be taken as a sign that the central bank does not yet feel the U.S. economy, the world’s largest, is far enough along in the recovery cycle to withdraw stimulus measures.
The Fed also appears to be betting that by keeping easing in place, the U.S. economy will be able to continue adding jobs and with the specter of tapering gone, mortgage rates will fall and stimulate housing demand, an integral part of U.S. GDP.
In U.S. economic news out Wednesday, the Commerce Department said single-family housing starts jumped 7% last month to an annual rate of 628,000 units, the highest level in six months. New construction for apartments and condominiums fell 11.1%. Permits for single-family homes rose 3% to the highest level since May 2008.
Elsewhere, Comex silver for December delivery surged 6.46% to USD22.958 per ounce while copper for December delivery rose 0.16% to USD3.322 an ounce.
Thursday, September 19, 2013
Tuesday, September 17, 2013
Gold prices fall as markets brace for gradual end to Fed stimulus
Investing.com - Gold prices fell on Tuesday as investors bet the Federal Reserve will conclude a two-day meeting on Wednesday announcing plans to taper its USD85 billion monthly bond-buying program.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,309.10 during U.S. afternoon hours, down 0.66%.
Gold prices hit a session low of USD1,306.10 a troy ounce and high of USD1,323.40 a troy ounce.
Gold futures were likely to find support at USD1,303.20 a troy ounce, Monday's low, and resistance at USD1,393.80, the high from Sept. 8.
The December contract settled up 0.70% at USD1,317.80 a troy ounce on Monday.
Gold prices fell as many investors felt the Fed will announce plans to trim the amount of bonds it buys each month to spur recovery, a stimulus tool known as quantitative easing that drives down long-term interest rates and weakens the dollar to spur recovery, a recipe for rising gold prices.
Losses were limited, however, as investors also bet the Federal Reserve will dismantle the stimulus program gradually.
Few, if any, expect the Federal Reserve to hike interest rates any time soon.
Elsewhere, soft pricing data out of the U.S. curbed gold's losses as well.
The U.S. consumer price index rose by 0.1% in August, missing expectations for a 0.1% gain.
The core consumer price index, which is stripped of volatile food and energy prices, rose 0.1% in August, in line with forecasts.
Elsewhere on the Comex, silver for December delivery was down 1.00% at USD21.788 a troy ounce, while copper for December delivery was up 0.02% and trading at USD3.223 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,309.10 during U.S. afternoon hours, down 0.66%.
Gold prices hit a session low of USD1,306.10 a troy ounce and high of USD1,323.40 a troy ounce.
Gold futures were likely to find support at USD1,303.20 a troy ounce, Monday's low, and resistance at USD1,393.80, the high from Sept. 8.
The December contract settled up 0.70% at USD1,317.80 a troy ounce on Monday.
Gold prices fell as many investors felt the Fed will announce plans to trim the amount of bonds it buys each month to spur recovery, a stimulus tool known as quantitative easing that drives down long-term interest rates and weakens the dollar to spur recovery, a recipe for rising gold prices.
Losses were limited, however, as investors also bet the Federal Reserve will dismantle the stimulus program gradually.
Few, if any, expect the Federal Reserve to hike interest rates any time soon.
Elsewhere, soft pricing data out of the U.S. curbed gold's losses as well.
The U.S. consumer price index rose by 0.1% in August, missing expectations for a 0.1% gain.
The core consumer price index, which is stripped of volatile food and energy prices, rose 0.1% in August, in line with forecasts.
Elsewhere on the Comex, silver for December delivery was down 1.00% at USD21.788 a troy ounce, while copper for December delivery was up 0.02% and trading at USD3.223 a pound.
Monday, September 16, 2013
Gold rallies after Summers Withdraws from Fed consideration
Investing.com - Gold futures soared in the early part of Monday’s session on news that former U.S. Treasury Secretary Larry Summers has withdrawn from consideration to be the next chairman of the Federal Reserve.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery jumped 1.59% to USD1,329.40 per ounce in Asian trading Monday. The December contract settled lower by 1.65% at USD1,308.60 per troy ounce on Friday.
Last week, gold futures slid 4.7% in the worst weekly loss since June as traders sold the yellow metal in anticipation that the Fed will make an official announcement of tapering to its USD85 billion-per-month quantitative easing program when it concludes a two-day meeting on Thursday Sept. 18.
Gold got some relief Friday after the Commerce Department said U.S. retail sales rose 0.2% in in August, below expectations for a 0.4% increase.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
Gold rallied in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware he would have difficulty being confirmed by the Senate even if nominated.
"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," said the President in a statement released by the White House on Sunday.
Elsewhere, Comex silver for December delivery soared 2.23% to USD22.205 per ounce while copper for December delivery inched down 0.01% to USD3.221 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery jumped 1.59% to USD1,329.40 per ounce in Asian trading Monday. The December contract settled lower by 1.65% at USD1,308.60 per troy ounce on Friday.
Last week, gold futures slid 4.7% in the worst weekly loss since June as traders sold the yellow metal in anticipation that the Fed will make an official announcement of tapering to its USD85 billion-per-month quantitative easing program when it concludes a two-day meeting on Thursday Sept. 18.
Gold got some relief Friday after the Commerce Department said U.S. retail sales rose 0.2% in in August, below expectations for a 0.4% increase.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
Gold rallied in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware he would have difficulty being confirmed by the Senate even if nominated.
"Earlier today, I spoke with Larry Summers and accepted his decision to withdraw his name from consideration for Chairman of the Federal Reserve. Larry was a critical member of my team as we faced down the worst economic crisis since the Great Depression, and it was in no small part because of his expertise, wisdom, and leadership that we wrestled the economy back to growth and made the kind of progress we are seeing today," said the President in a statement released by the White House on Sunday.
Elsewhere, Comex silver for December delivery soared 2.23% to USD22.205 per ounce while copper for December delivery inched down 0.01% to USD3.221 per ounce.
Dollar broadly lower, Fed in focus
Investing.com - The dollar was lower against the other major currencies on Monday, following news that former U.S. Treasury Secretary Lawrence Summers bowed out of the race to become the next chairman of the Federal Reserve.
During U.S. morning trade, the dollar was down against the yen, withUSD/JPY shedding 0.52% to trade at 98.84.
The dollar weakened across the board after Summers’ withdrew from the running to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday, amid doubts over whether the bank will start unwinding its USD85 billion-a-month bond buying program.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
This was offset by a report showing that U.S. industrial production rose 0.4% in August, in line with expectations after remaining flat in July.
Elsewhere, the euro was close to three-week highs against the dollar, with EUR/USD advancing 0.45% to 1.3356.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
The pound advanced to eight-month highs against the dollar, withGBP/USD climbing 0.40% to 1.5941.
The dollar was also lower against the Swiss franc, with USD/CHF falling 0.48% to 0.9251.
Elsewhere, the greenback was sharply lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD jumping 1.07% to 0.9344, NZD/USD gaining 0.60% to trade at 0.8182 and USD/CAD down 0.33% to 1.0320.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.47% to 81.29.
During U.S. morning trade, the dollar was down against the yen, withUSD/JPY shedding 0.52% to trade at 98.84.
The dollar weakened across the board after Summers’ withdrew from the running to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday, amid doubts over whether the bank will start unwinding its USD85 billion-a-month bond buying program.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
This was offset by a report showing that U.S. industrial production rose 0.4% in August, in line with expectations after remaining flat in July.
Elsewhere, the euro was close to three-week highs against the dollar, with EUR/USD advancing 0.45% to 1.3356.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
The pound advanced to eight-month highs against the dollar, withGBP/USD climbing 0.40% to 1.5941.
The dollar was also lower against the Swiss franc, with USD/CHF falling 0.48% to 0.9251.
Elsewhere, the greenback was sharply lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD jumping 1.07% to 0.9344, NZD/USD gaining 0.60% to trade at 0.8182 and USD/CAD down 0.33% to 1.0320.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.47% to 81.29.
I wont' give up in Forex
even I loss money in forex but at lease i learned something through it , such reading news and becoming a fundamental persons. before I jump into forex , I never care about economy , politics and environments. what i did care was to find a good job after graduate.
But it has change my personal view about anything, learning did not stop after graduate or becoming VIP in current company but it continue in our life time.
But it has change my personal view about anything, learning did not stop after graduate or becoming VIP in current company but it continue in our life time.
Forex - EUR/USD near 3-week highs in risk-on trade
Investing.com - The euro was trading close to three-week highs against the dollar on Monday after former U.S. Treasury Secretary Larry Summers withdrew from the contest to be the next head of the Federal Reserve.
EUR/USD hit 1.3382 during European afternoon trade, the highest since August 28; the pair subsequently consolidated at 1.3356, advancing 0.45%.
The pair was likely to find support at 1.3253, Friday’s low and resistance at 1.3400.
Risk appetite sharpened after Summers’ pulled out of the race to succeed Ben Bernanke as the next Fed chairman. Markets had viewed Summers’ as being likely to roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also focusing on the outcome of the upcoming Fed policy meeting, which concludes on Wednesday, after a recent series of lukewarm U.S. data raised doubts over whether the central bank will start to taper its USD85 billion-a-month bond buying program this month.
Meanwhile, European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”.
The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
The single currency was slightly higher against the pound, withEUR/GBP easing up 0.115 to 0.8382 and edged lower against the yen, with EUR/JPY dipping 0.03% to 132.05.
The U.S. was to publish the Empire state manufacturing index as well as data on industrial production and the capacity utilization rate later in the trading day.
EUR/USD hit 1.3382 during European afternoon trade, the highest since August 28; the pair subsequently consolidated at 1.3356, advancing 0.45%.
The pair was likely to find support at 1.3253, Friday’s low and resistance at 1.3400.
Risk appetite sharpened after Summers’ pulled out of the race to succeed Ben Bernanke as the next Fed chairman. Markets had viewed Summers’ as being likely to roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also focusing on the outcome of the upcoming Fed policy meeting, which concludes on Wednesday, after a recent series of lukewarm U.S. data raised doubts over whether the central bank will start to taper its USD85 billion-a-month bond buying program this month.
Meanwhile, European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”.
The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
The single currency was slightly higher against the pound, withEUR/GBP easing up 0.115 to 0.8382 and edged lower against the yen, with EUR/JPY dipping 0.03% to 132.05.
The U.S. was to publish the Empire state manufacturing index as well as data on industrial production and the capacity utilization rate later in the trading day.
European stocks remain higher despite Draghi comments; Dax jumps 1.28%
Investing.com - European stocks remained higher on Monday, despite downbeat comments by European Central Bank President Mario Draghi as news that Lawrence Summers withdrew from the contest to succeed Ben Bernanke as the next chairman of the Federal Reserve supported sentiment.
During European afternoon trade, the EURO STOXX 50 advanced 0.88%, France’s CAC 40 gained 0.89%, while Germany’s DAX 30 jumped 1.08%.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
But european stocks remained supported after Lawrence pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale jumped 0.96% and 1.45%, while Germany's Deutsche Bank advanced 1.04%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA added 0.24% and 0.29% respectively, while Italy's Intesa Sanpaolo and Unicredit rose 0.37% and 1.28%.
Elsewhere, Royal KPN gained 1.15% following reports it will record a tax-book loss of EUR3.7 billion for the planned sale of its German wireless unit to Spain’s Telefonica, reducing the taxes it will have to pay on future earnings.
Also in the upside, Swedish clothing retailer Hennes & Mauritz said sales at stores open for at least a year rose 4% on the year in August, sending shares up 3.63%.
In London, FTSE 100 climbed 0.92%, as U.K. lenders continued to track their European counterparts higher.
Shares in HSBC Holdings advamced 0.69% and Barclays jumped 1.74%, while the Royal Bank of Scotland and Lloyds Banking surged 1.59% and 2.11% respectively.
Meanwhile, mining stocks were mixed, with Glencore Xstrata gaining 1.11% and Rio Tinto up 1.21%, while Polymetal and Fresnillo saw shares dive 6.36% and 13.15%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 1.09% jump, S&P 500 futures signaled a 1.11% rally, while the Nasdaq 100 futures indicated a 1.05% gain.
Later in the day, the U.S. was to release reports on retail sales and producer price inflation, as well as preliminary data from the University of Michigan on consumer sentiment.
During European afternoon trade, the EURO STOXX 50 advanced 0.88%, France’s CAC 40 gained 0.89%, while Germany’s DAX 30 jumped 1.08%.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
But european stocks remained supported after Lawrence pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Financial stocks remained broadly higher, as French lenders BNP Paribas and Societe Generale jumped 0.96% and 1.45%, while Germany's Deutsche Bank advanced 1.04%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA added 0.24% and 0.29% respectively, while Italy's Intesa Sanpaolo and Unicredit rose 0.37% and 1.28%.
Elsewhere, Royal KPN gained 1.15% following reports it will record a tax-book loss of EUR3.7 billion for the planned sale of its German wireless unit to Spain’s Telefonica, reducing the taxes it will have to pay on future earnings.
Also in the upside, Swedish clothing retailer Hennes & Mauritz said sales at stores open for at least a year rose 4% on the year in August, sending shares up 3.63%.
In London, FTSE 100 climbed 0.92%, as U.K. lenders continued to track their European counterparts higher.
Shares in HSBC Holdings advamced 0.69% and Barclays jumped 1.74%, while the Royal Bank of Scotland and Lloyds Banking surged 1.59% and 2.11% respectively.
Meanwhile, mining stocks were mixed, with Glencore Xstrata gaining 1.11% and Rio Tinto up 1.21%, while Polymetal and Fresnillo saw shares dive 6.36% and 13.15%.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 1.09% jump, S&P 500 futures signaled a 1.11% rally, while the Nasdaq 100 futures indicated a 1.05% gain.
Later in the day, the U.S. was to release reports on retail sales and producer price inflation, as well as preliminary data from the University of Michigan on consumer sentiment.
Gold Continuing Lower Following Bearish Confirmation
Gold traded lower today despite an earlier rally brought about by the weakening of the USD across the board. This shouldn’t come as a surprise as the US-Russian agreement on Syria was expected to drive Gold prices lower just as Crude Oil was pressed lower earlier this morning. If anything, the less than impressive rally this morning for Gold at least makes it less bearish than Crude Oil, and gives a ray of hope for bulls still thinking that we may see yet another push towards 1,400 eventually.
However, this hope appears to have vanished when prices dipped, eventually trading below last Friday’s US close during early European hours. The decline does not appear to be fundamentally driven as there wasn’t any major news that could have driven prices lower. The only significant scheduled news back then was the ECB's (Draghi’s) speech, but even that should have been a mild positive for prices as the ECB President affirmed that interest rates will remain low in the near future.
It seems that the current decline was brought about by technical bears who were accumulating throughout the hours when bulls failed to push beyond the 1,330+ ceiling and the camel's back eventually broke, sending us close to 1,300 currently.
By trading below last Friday’s close, bears open up a Channel Top as a possible bearish target. As the current Channel Top level is below Friday’s low, it is possible that further bearish acceleration may happen, especially since this would mean that the key 1,300 round figure will be broken as well. Stochastic readings are below 50.0, suggesting that a short-term bullish pullback may be possible should we trade close to 1,300, but as long as price does not break the 1,320 soft ceiling of last Friday, the current bear trend will not be invalidated and we could yet see further bearish movement towards 1,200 eventually.
The Weekly Chart shows a slight bearish extension following last week’s confirmation of the rejection from the Channel Bottom. Stochastic readings affirm the bearishness, suggesting that we could see further bearish movement deep into the 1,200 region with the possibility of even breaking the 1,200 barrier as the Channel Top is just around the corner, allowing bears to react in the same way short-term bearish momentum would with regard to 1,300.
Fundamentally, there are signs that institutional traders/investors are no longer as bullish as before. The latest COT data shows a decline of almost 10,000 contracts in Net Long Non-Commerical Positions. If we see further erosion of long positions from this past Friday’s data, we could see even quicker acceleration next week as this would act as a confirmation that institutions are indeed selling from the sub-1,400 move that led us here today. The only saving grace for Gold would be the FOMC event on Wednesday. If the FOMC surprises markets with a non-action (e.g. no tapering announcement), we could potentially see Gold being bid in the short-term.
However, this hope appears to have vanished when prices dipped, eventually trading below last Friday’s US close during early European hours. The decline does not appear to be fundamentally driven as there wasn’t any major news that could have driven prices lower. The only significant scheduled news back then was the ECB's (Draghi’s) speech, but even that should have been a mild positive for prices as the ECB President affirmed that interest rates will remain low in the near future.
It seems that the current decline was brought about by technical bears who were accumulating throughout the hours when bulls failed to push beyond the 1,330+ ceiling and the camel's back eventually broke, sending us close to 1,300 currently.
By trading below last Friday’s close, bears open up a Channel Top as a possible bearish target. As the current Channel Top level is below Friday’s low, it is possible that further bearish acceleration may happen, especially since this would mean that the key 1,300 round figure will be broken as well. Stochastic readings are below 50.0, suggesting that a short-term bullish pullback may be possible should we trade close to 1,300, but as long as price does not break the 1,320 soft ceiling of last Friday, the current bear trend will not be invalidated and we could yet see further bearish movement towards 1,200 eventually.
The Weekly Chart shows a slight bearish extension following last week’s confirmation of the rejection from the Channel Bottom. Stochastic readings affirm the bearishness, suggesting that we could see further bearish movement deep into the 1,200 region with the possibility of even breaking the 1,200 barrier as the Channel Top is just around the corner, allowing bears to react in the same way short-term bearish momentum would with regard to 1,300.
Fundamentally, there are signs that institutional traders/investors are no longer as bullish as before. The latest COT data shows a decline of almost 10,000 contracts in Net Long Non-Commerical Positions. If we see further erosion of long positions from this past Friday’s data, we could see even quicker acceleration next week as this would act as a confirmation that institutions are indeed selling from the sub-1,400 move that led us here today. The only saving grace for Gold would be the FOMC event on Wednesday. If the FOMC surprises markets with a non-action (e.g. no tapering announcement), we could potentially see Gold being bid in the short-term.
Long-term, it is unlikely that a temporary stay by the Fed would allow Gold prices to climb higher, especially since Gold prices went lower after the QE3 announcement – suggesting that the bullish impact of QE on Gold is weak, if not non-existent.
Dollar lower on Summers’ withdrawal, weak U.S. data
Investing.com - The dollar was broadly lower against the other major currencies on Monday after Larry Summers withdrew from the race to be the next head of the Federal Reserve, while weak U.S. manufacturing data also weighed.
During European afternoon trade, the dollar was down against the yen, with USD/JPY shedding 0.64% to trade at 98.71.
Investor confidence was boosted after Summers’ pulled out of the race to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
Elsewhere, the euro was close to three-week highs against the dollar, with EUR/USD advancing 0.60% to 1.3375.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
The pound advanced to eight-month highs against the dollar, withGBP/USD climbing 0.46% to 1.5950.
The dollar was also lower against the Swiss franc, with USD/CHF falling 0.50% to 0.9271.
Elsewhere, the greenback was sharply lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD jumping 1.50% to 0.9384, NZD/USD rallying 1.07% to 0.8220 and USD/CAD losing 0.55% to trade at 1.0302.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.59% to 81.18.
The U.S. was to release data on industrial production and the capacity utilization rate later in the trading day.
During European afternoon trade, the dollar was down against the yen, with USD/JPY shedding 0.64% to trade at 98.71.
Investor confidence was boosted after Summers’ pulled out of the race to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
Elsewhere, the euro was close to three-week highs against the dollar, with EUR/USD advancing 0.60% to 1.3375.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
Separately, data showed that consumer price inflation in the euro zone remained steady at 1.3% on a year-over-year basis in August, unchanged from an initial estimate and in line with expectations.
The pound advanced to eight-month highs against the dollar, withGBP/USD climbing 0.46% to 1.5950.
The dollar was also lower against the Swiss franc, with USD/CHF falling 0.50% to 0.9271.
Elsewhere, the greenback was sharply lower against its Australian, New Zealand and Canadian counterparts, with AUD/USD jumping 1.50% to 0.9384, NZD/USD rallying 1.07% to 0.8220 and USD/CAD losing 0.55% to trade at 1.0302.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.59% to 81.18.
The U.S. was to release data on industrial production and the capacity utilization rate later in the trading day.
Crude oil futures fall sharply to hit 3-week low on Syria accord
Investing.com - Crude oil futures were down sharply to hit a three-week low on Monday, as the threat of U.S. military intervention in Syria appeared to diminish, easing concerns over a disruption to supplies from the Middle East.
Oil traders shrugged off news that former U.S. Treasury secretary Larry Summers withdrew himself from consideration to be the next Federal Reserve chairman, which sent the U.S. dollar sharply lower against its major rivals.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD105.92 a barrel during U.S. morning trade, down 1.5%.
New York-traded oil futures fell by as much as 1.6% earlier in the day to hit a session low of USD105.80 a barrel, the weakest level since September 1. The November contract settled 0.2% lower at USD107.54 a barrel on Friday.
Oil futures were likely to find support at USD105.06 a barrel, the low from September 1 and resistance at USD108.64 a barrel, Friday’s high.
Oil prices tumbled as market players remained focused on developments regarding a diplomatic solution on how to handle Syria’s chemical weapons.
On Saturday, U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov agreed on a framework for Syria to destroy its chemical weapons stockpile by the middle of 2014.
Under the agreement, Syrian President Bashar al-Assad will be required to declare his country’s stockpiles of chemical weapons by September 20.
The agreement calls on Syria’s government to allow chemical-weapons inspectors access to sites where the weapons are being stored. The initial on-site inspections would be completed by November.
The country’s chemical weapons infrastructure would be dismantled by the first half of 2014, according to the agreement.
Oil prices surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.
Countries in the Middle East were responsible for nearly 35% of global oil production in 2012.
Meanwhile, investors shifted their focus to the Federal Reserve’s upcoming two-day policy meeting, which concludes on Wednesday, amid ongoing speculation over the timing of the central bank’s widely expected reduction in monthly bond purchases.
Data released earlier in the day showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery plunged 2.1% to trade at USD109.36 a barrel, with the spread between the Brent and crude contracts standing at USD3.44 a barrel.
London-traded Brent prices fell by as much as 2.6% earlier to hit a daily low of USD108.80 a barrel, the weakest level since August 20.
Oil traders shrugged off news that former U.S. Treasury secretary Larry Summers withdrew himself from consideration to be the next Federal Reserve chairman, which sent the U.S. dollar sharply lower against its major rivals.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD105.92 a barrel during U.S. morning trade, down 1.5%.
New York-traded oil futures fell by as much as 1.6% earlier in the day to hit a session low of USD105.80 a barrel, the weakest level since September 1. The November contract settled 0.2% lower at USD107.54 a barrel on Friday.
Oil futures were likely to find support at USD105.06 a barrel, the low from September 1 and resistance at USD108.64 a barrel, Friday’s high.
Oil prices tumbled as market players remained focused on developments regarding a diplomatic solution on how to handle Syria’s chemical weapons.
On Saturday, U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov agreed on a framework for Syria to destroy its chemical weapons stockpile by the middle of 2014.
Under the agreement, Syrian President Bashar al-Assad will be required to declare his country’s stockpiles of chemical weapons by September 20.
The agreement calls on Syria’s government to allow chemical-weapons inspectors access to sites where the weapons are being stored. The initial on-site inspections would be completed by November.
The country’s chemical weapons infrastructure would be dismantled by the first half of 2014, according to the agreement.
Oil prices surged to a 27-month high of USD112.22 a barrel on August 28 amid indications the U.S. was close to taking military action against Bashar al-Assad’s government.
While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries.
Countries in the Middle East were responsible for nearly 35% of global oil production in 2012.
Meanwhile, investors shifted their focus to the Federal Reserve’s upcoming two-day policy meeting, which concludes on Wednesday, amid ongoing speculation over the timing of the central bank’s widely expected reduction in monthly bond purchases.
Data released earlier in the day showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery plunged 2.1% to trade at USD109.36 a barrel, with the spread between the Brent and crude contracts standing at USD3.44 a barrel.
London-traded Brent prices fell by as much as 2.6% earlier to hit a daily low of USD108.80 a barrel, the weakest level since August 20.
Forex - Broadly weaker dollar hits 2-week lows vs. yen
Investing.com - The broadly weaker dollar fell to two-week lows against the yen on Monday as market sentiment was boosted after Lawrence Summers pulled out of the race to succeed Ben Bernanke as the next chairman of the Federal Reserve.
USD/JPY hit 98.50 during late Asian trade, the lowest since September 2; the pair subsequently consolidated at 98.84, shedding 0.51%.
The pair was likely to find support at 97.87, the low of August 30 and resistance at 99.50.
The dollar weakened broadly after Summers withdrew from the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also focusing on the outcome of the upcoming Fed policy meeting, which concludes on Wednesday, after a recent series of lukewarm U.S. data raised doubts over whether the central bank will start to taper its USD85 billion-a-month bond buying program this month.
The yen was little changed against the euro, with EUR/JPY dipping 0.02% to 132.07.
The euro zone was to release data on consumer price inflation later Monday, while European Central Bank President Mario Draghi was to speak in Berlin.
The U.S. was to publish the Empire state manufacturing index, in addition to data on industrial production and the capacity utilization rate.
USD/JPY hit 98.50 during late Asian trade, the lowest since September 2; the pair subsequently consolidated at 98.84, shedding 0.51%.
The pair was likely to find support at 97.87, the low of August 30 and resistance at 99.50.
The dollar weakened broadly after Summers withdrew from the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also focusing on the outcome of the upcoming Fed policy meeting, which concludes on Wednesday, after a recent series of lukewarm U.S. data raised doubts over whether the central bank will start to taper its USD85 billion-a-month bond buying program this month.
The yen was little changed against the euro, with EUR/JPY dipping 0.02% to 132.07.
The euro zone was to release data on consumer price inflation later Monday, while European Central Bank President Mario Draghi was to speak in Berlin.
The U.S. was to publish the Empire state manufacturing index, in addition to data on industrial production and the capacity utilization rate.
Gold futures rally more than 1% as dollar sinks on Summers news
Investing.com - Gold futures kicked off the week with strong gains on Monday, after former U.S. Treasury secretary Larry Summers withdrew himself from consideration to be the next Federal Reserve chairman.
Traders now turned their attention to this week's U.S. monetary policy decision on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,325.70 a troy ounce during European morning hours, up 1.3%.
Gold prices rose by as much as 1.9% earlier in the day to hit a session high of USD1,334.60 a troy ounce. The December contract ended 1.65% lower on Friday to settle at USD1,308.60 a troy ounce.
Futures were likely to find support at USD1,318.10 a troy ounce, the low from August 15 and resistance at USD1,387.10, the high from September 10.
The U.S. dollar tumbled against its major counterparts after Summers pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, current Fed Vice Chairwoman Janet Yellen.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.5% to hit 81.25, the lowest level since August 28.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, investors shifted their focus to the Fed’s upcoming two-day policy meeting, which concludes on Wednesday, amid ongoing speculation over the timing of the central bank’s widely expected reduction in monthly bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of nearly 21% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery rallied 1.3% to trade at USD21.99 a troy ounce, while copper for December delivery advanced 0.4% to trade at USD3.216 a pound.
Traders now turned their attention to this week's U.S. monetary policy decision on Wednesday.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,325.70 a troy ounce during European morning hours, up 1.3%.
Gold prices rose by as much as 1.9% earlier in the day to hit a session high of USD1,334.60 a troy ounce. The December contract ended 1.65% lower on Friday to settle at USD1,308.60 a troy ounce.
Futures were likely to find support at USD1,318.10 a troy ounce, the low from August 15 and resistance at USD1,387.10, the high from September 10.
The U.S. dollar tumbled against its major counterparts after Summers pulled out of the race to be the next Fed chairman, easing investor concerns that he would roll back economic stimulus measures more aggressively than his main rival for the post, current Fed Vice Chairwoman Janet Yellen.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.5% to hit 81.25, the lowest level since August 28.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, investors shifted their focus to the Fed’s upcoming two-day policy meeting, which concludes on Wednesday, amid ongoing speculation over the timing of the central bank’s widely expected reduction in monthly bond purchases.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
The precious metal is on track to post a loss of nearly 21% on the year as traders bet an improving U.S. economy would lead the Fed to unwind its stimulus program by the year's end.
Elsewhere on the Comex, silver for December delivery rallied 1.3% to trade at USD21.99 a troy ounce, while copper for December delivery advanced 0.4% to trade at USD3.216 a pound.
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