Trending: Oil | Gold | BITCOIN | EUR/USD | GBP/USD

Crude oil advances, eyes to focus on Fed meeting

ecPulse

2013-06-17 07:27AM UTC

Oil for August delivery advanced on Monday trading, tracking gains in Asia`s shares before the U.S. Federal Reserve two-day meeting this week. Oil is currently trading around $98.13 a barrel, compared with the session’s opening of $97.88, after touching a low of $97.85 and a high of $98.20, where the trading range for today is expected among the major support at $96.30 and the major resistance at $98.40. Oil took advantage of the improvement in U.S. data and drop in U.S. dollar over the previous two weeks as it rebounded from a low of $91.27 to hit a high of $98.46 last week. The most recent reports from the United States showed the world’s no.1 economy is moving on the right track towards recovery, where eyes will focus on this week’s policy meeting by the Fed as it will point to the future of the Fed’s monthly purchases. The Fed Chairman Ben Bernanke will discuss in the press conference following the Fed’s decision the reasons behind the Fed’s monetary act, amid expectations of seeing a hold in the Fed’s monthly bond purchases of $85 billion as many analysts predict a gradual reduction by the end of the year. Bernanke mentioned on May 22 that there could be a decrease or increase in stimulus according to the improvement in labor market. Crude oil took advantage of the volatility over the previous couple weeks to climb on the drop in the greenback. The U.S. dollar recorded last week its fourth straight weekly drop versus a basket of major currencies, losing around 4.3%, amid uncertainty about Fed stimulus after major central banks decided to hold their monetary stance this month. The dollar index, which tracks the dollar movements versus a basket of six major currencies, rebounded today to hover around 80.80, compared with the session’s opening of 80.70.

Gold inches down ahead of Fed meeting

Fx News Today

2013-06-17 06:54AM UTC

Precious-Gold inched down on Monday trading amid expectations the Fed may announce tapering its bond purchases during this week’s meeting. Gold is currently trading around $1387.81 after hitting a low of $1386.76 and a high of $1391.75, where the trading range for today could be between support at $1365 and resistance at $1400. Over the previous couple of weeks that have witnessed uncertainty whether central banks would scale or add to stimulus, especially after the rise in bond yields, gold did not benefit from the worries that pushed down shares and triggered safety demand on the yen. Unlike crude oil which benefited from the recent drop in the U.S. dollar, gold remained sideways moving within narrow range since mid-May, mainly between support at $1345.00 and resistance at $1423.83. In general, the yellow metal is still facing downside pressure to remain in bearish market, continuing its downside trend that has begun since October last year, noting that gold has lost 17% this year after gaining for 12 consecutive years. The U.S. dollar recorded last week its fourth straight weekly drop, losing around 4.3%, amid uncertainty about Fed stimulus after major central banks decided to hold their monetary stance this month. Eyes will focus on the two-day policy meeting held by the Fed on June 18-19 that will be followed by a press conference by Fed Chairman Ben Bernanke who will discuss the reasons behind the Fed’s monetary decision. Many analysts predict a hold in the Fed’s monthly bond purchases of $85 billion to bolster recovery where there could a reduction in the quantity by the end of the year. Bernanke mentioned on May 22 that there could be a decrease or increase in stimulus according to the improvement in labor market. The most recent non-farm payrolls showed the U.S. added 175,000 jobs last month, better than forecasts of 163,000, while jobless rate climbed from four-month low of 7.5% to 7.6%.

Lower governmental spending won’t hurt Chinese economy

Fx News Today

2013-06-17 01:07AM UTC

Moderate consumers demand in China will not affect on Chinese governments’ decision to lower its governmental spending.

Monetary policy makers in China are looking forward to reduce governmental spending in order to curb fake consumption rates, where Chinese economy should do this step even other sectors were negatively affected.

Japanese yen fell on tertiary readings, Aussie and Kiwi wins

Fx News Today

2013-06-17 01:00AM UTC

Japanese yen noticeably fell during today’s Asian session versus American dollar and other major currencies, where Japanese economy showed less-than-estimated tertiary index reading amid the recent instable companies’ revenues on yen’s instability.

At the same time, American dollar fell during today’s session also versus major currencies, where investors began to avoid risk appetite in money markets, and began to take the Australian and New Zealand’s dollar to incline versus dollar.

Japanese yen fell against American dollar, where the USD/JPY pair inclined to record high of 94.635 after hitting low of 94.226, while the pair started today’s session at 94.323.

Japanese yen also fell against Euro today leaving profits to Euro for the sixth consecutive session, as the EUR/JPY pair recorded high of 126.240 after hitting low of 125.800, while the pair started today’s session at 125.967. GBP/JPY pair also noticeably inclined to reach its highest at 148.739 from 148.380.

From another side, Aussie inclined today versus its counterpart American dollar after recorded losses during the past two sessions, where the AUD/USD pair inclined to record high of 0.96104 after hitting low of 0.95635. NZD/USD pair also inclined to high of 0.80786 from low of 0.80477.