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Gold inches down ahead of Fed meeting

ecPulse
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.

Japan seeks tax exemptions for investments’ companies

Fx News Today
2013-06-17 00:48AM UTC

Japanese government is seeking to set new tax exemptions for investments’ companies in Japan in order to spur capital spending by the end of the year.

Finance Minister Amrai called for this step amid the recent attempts from the world’s third largest economy to spur growth rates and reach the targeted 2% inflation within two year as well as to end the 15-years deflation threats.