Clinton Hints at Comeback to ‘Shine a Light’ on Issues
Former presidential candidate Hillary Clinton hinted Friday that she is ready to re-enter public life. Clinton said, “I am ready to come out of the woods,” at the end of a St. Patrick’s Day speech in Scranton, Pennsylvania, in a reference to her viral photograph while hiking in the woods near her home in Chappaqua, New… Continue reading “Clinton Hints at Comeback to ‘Shine a Light’ on Issues”
Euro and commodity currencies struggle as dollar and pound shine
Buz Investors Euro and commodity currencies struggle Emerging market currencies were under pressure from a bullish dollar on the week’s last trading day as US treasury yields continued to edge higher on expectations of a fiscal stimulus by the incoming new president in the United States. The euro was also dragged lower by the resurgent greenback but the pound appeared to enjoy an unexpected boost from Donald Trump’s victory.
The US dollar was trading close to yesterday’s 3½-month high just below 107 yen for much of the European session as investors price in looser fiscal policy in the US under a Trump administration, while expectations of a rate hike by the Fed in December remain firmly in place. Fed Vice Chair Stanley Fischer, who was speaking in Chile today, reaffirmed such expectations, saying the case for a rate hike is “quite strong”. In the meantime, anticipation that Trump’s policies will boost economic growth and inflation drove 10-year US treasury yields to a fresh 10-month high of 2.154% today.
Euro and commodity currencies struggle
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Rising treasury yields had a negative impact on emerging market currencies on fears that higher US yields would trigger an outflow of capital from emerging market assets to US ones. The Mexican peso was one of the worst performers as Mexico faces the additional possibility of a less favourable trade deal with the US under President-elect Trump. The peso hit a new all-time low today of 21.3952 per US dollar but managed to firm slightly to around 21.15 per dollar in late European session.
The Brazilian real and South African rand were also down sharply, as well as Asian currencies such as the Malaysian ringgit, the South Korean won and the Indonesian rupiah. The Chinese yuan could not escape market forces either, though its moves were more moderate despite touching a fresh 6-year low for a second consecutive day.
Commodities also came under pressure during European trading with both gold and crude oil slumping by around 3% in late session. Gold tumbled to a 5-month low of $1224.83 an ounce, while US crude was back below $44 a barrel.
This led to commodity-driven currencies such as the Canadian, Australian and New Zealand dollars to extend their losses for a third straight day. The aussie and the kiwi were both down over 1% at 0.7527 and 0.7113 respectively versus the US dollar as the declining yield differentials between the pairs made the antipodean currencies less attractive. The Canadian dollar meanwhile hit a fresh 8-month low of C$1.3546 per US dollar.
Safe haven currencies were mixed, as the Swiss franc and the yen gained against riskier currencies but were weaker against the dollar and the pound. The euro also benefited from the sell-off in emerging market and commodity currencies but struggled against other safe-havens, as well as the dollar and the pound.
The single currency hit an 8-month low of 1.0838 versus the greenback after failing in its attempt to hold above 1.09 dollars when it briefly spiked above the level. It was also weaker against sterling, as it slid to a 7-month low of 0.8567 pounds. In addition to the rising yields in the US, the euro is facing some political uncertainty from upcoming French and German elections in 2017 and a constitutional referendum in Italy in December, as investors fear a similar revolt by European voters to what’s been experienced in the UK and the US.
The pound on the other hand rose on hopes that a Trump presidency would boost Britain’s Brexit cause, strengthening its negotiating hand in new trade talks. Sterling rallied to a one-month high of 1.2673 dollars earlier in the session before easing to around 1.2575 in late trading. Adding support to the pound were positive construction data. UK construction output increased by 0.3% m/m in September versus expectations of -0.2%.
The only major data of the session was the University of Michigan consumer sentiment index out of the US. The preliminary reading of the index came in sharply above expectations at 91.6 in November, compared to forecasts of 87.5 and up from 87.2 in October.
Buz Investors Looking to Shine Lacklustre gold prices make or break territory
- Buz Investors Looking to Shine Lacklustre gold prices The precious metal is trading at $1325.00 per ounce at 09:40 GMT this morning, 0.06% lower from the New York close.
- This morning, the precious metal traded at a high of $1329.40 per ounce and a low of $1323.50 per ounce. Yesterday,
- gold traded 0.17% lower in the New York session and closed at $1325.80 per ounce, as strength in US Dollar and global equities reduced demand for safe haven yellow metal. Gold has its first support at $1320.57 per ounce and its first resistance at $1329.97 per ounce.
Buz Investors Looking to Shine Lacklustre gold prices bullish bets have now fallen
Lacklustre gold prices On Wednesday gold continued to drift lower with December futures trading on the Comex market in New York exchanging hands at $1,325.90 an ounce in early morning trade, down $4.50 from Tuesday’s close.
Gold touched a two-year high in July around $1,380 an ounce and year to date the metal is up 26% or close to $280 an ounce, one of its best annual performances since 1980.
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Buz Investors Looking to Shine Lacklustre gold prices
On a net basis bullish bets have now fallen to 21.9 million, down 24% from the all-time high and the lowest net position since May’s correction, when gold came close to falling through the $1,200 an ounce level.
Investors are also pulling out of top physical gold-backed exchange traded fund – SPDR Gold Shares (NYSEARCA: GLD). GLD’s holdings hit a 2016 high at the same hedge funds were stocking up on futures lots in July, but some 33.6 tonnes have been pulled out from the fund’s vaults since then, reducing the value of holdings by $2.2 billion.
Gold and Silver regain shine
- regain shine precious metals’ performances which — as measured over the past four decades — are as top tier as they can appear! So now with two trimesters plus two days in the trading books for 2016, here are our year-to-date BEGOS Markets standings
- Gold’s comparatively docile year-over-year percentage track, +18%, versus those of its high-level equities brethren: Goldcorp Inc (NYSE:GG) +20%, Franco-Nevada Corporation (TO:FNV) +75%, GDX (NYSE:GDX) (the prominent exchange-traded fund of the Gold miners) +104%, SIL (the popular exchange-traded fund of the Silver miners) +141%, and NEM (Newmont Mining
- GDX’s bright blue track is also representative of itsyear-to-date performance (+99%, and as much as +131% upon price having touched 31.79 on 12 August): a sound doubling so far this year for “the miners”.
Gold and Silver took advantage of a weak NFP print and continue to suggest near-term gains are a possibility
regain shine ‘Course, if Gold were to settle this year at 1500 (+41%), ‘twould be its sixth best performance since President Nixon’s 1971 Gold-standard nixing, after which price in 1972 rose +43%. And for those of you scoring at home, the other bettering years were 1979’s +59%, 1974’s +64%, 1973’s +67%, and 1980’s +100%. From our more modest purview for this year’s balance, we remain curious as to Gold’s course upon its regaining Base Camp 1377, our revised projected high which to date has precisely held. Hopefully, ’twill prove us wrong.
In the interim, the trend remains Gold’s friend: as we next see by the weekly bars, the linear regression trend (dashed line) is in brilliant ascent, as continues the parabolic Long trend of the ascending blue dots. The 1306 structural supporter (green line) was essentially twice-tested during first two days of September, with price repelling back up to settle out the week yesterday (Friday) at 1329:
Still, the year’s stalwart run for Gold and Silver remains silently buried in the financial news flow, if for no other reason than “nobody” owns such multi-millennia-proven assets. Rather, incessant media machinations remain of adapting practically anything and everything into how it might sway members of the Federal Open Market Committee into “raising” their central bank’s overnight lending rate in just 18 days on 21 September; else so do in December, (their November pre-election get-together not even mentioned in the conversation: heaven forbid their first nicking up the rate, the stock market then tanking, Mr. Trump then winning, and the FedFolks then hearing “You’re fired!”). And yet MarketWatch reported this past week that the “U.S. Economy Is Providing Ammo for Higher Interest Rates Ahead.” What do you think?
Gold, Silver Shine Brightly As Fed Dithers On Rates
Gold, Silver Shine old futures continued to move higher Tuesday amid speculation the Federal Reserve will keep interest rates exceedingly low for the time being.
Gold was up $5 at $1364 an ounce, helped by its safe haven appeal and a slightly weaker dollar.
Silver has skyrocketed in recent days, jumping to a 2-year peak above $20.70.
The Commerce Department is scheduled to release its personal income and spending report for June at 8:30 am ET. Economists expect 0.3 percent increases each in personal income and spending.
Meanwhile, Federal Reserve Bank of Dallas President Robert Kaplan urged that the central bank should raise interest rates in a “gradual and patient manner”