The Aussie declined to a 5.5-year low versus the greenback amid the Fed statement and poor import prices data in Australia. AUD/USD hit the lowest level of 0.7854 since 2009 after the Australian Bureau of Statistics stated that prices on import added 0.9% in the last three months, barely more than a half of the 1.5% expectation. In the meantime,
Gold prices declined on Thursday amid traders changing their estimates on US interest rate hike schedule. Prices fluctuated between $1,278.30 and $1,280.60 per troy ounce, whereas gold futures for April delivery slid by 0.51% to $1,280.60 per troy ounce on Comex, compared to 0.44% loss of $5.70 on the previous day. The US Dollar Index slightly strengthened and was close
On Thursday the US Dollar remained steady versus the Euro and the Yen due to the Fed's statement on interest rates unlikely rising until the middle of 2015. The USD/JPY reached a high of 118.09 overnight and last seen settling at 117.66, whereas the EUR/USD experienced barely any change and settled at 1.1287, compared to yesterday's high of 1.1382. The
On Thursday prices for NYMEX crude oil in Asia edged up slightly amid noticeable demand prospects in the US economy. Oil futures for March delivery added 0.20% to $44.54 per barrel in Asia, while WTI futures experienced further pressure despite US economy expansion. Meanwhile, Brent futures for March delivery slid 0.96% and traded at $49.13 per barrel on the ICE
Singapore's currency dropped when the CB of the Asian nation surprisingly eased the monetary policy, highlighting the variety in central bank policies around the world. Singapore's Dollar plummeted 0.9% to S$1.3511 versus the Dollar as of 11:51 a.m. London time, the lowest since august 2010.
China is going to lower the growth target to 7% for the current year. Policy-makers are trying to stimulate weak growth, create more working places, and introduce the needed reforms. This is the most humble goal since 2004. The announcement is expected to be made in March by Premier Li Keqiang at the annual parliament meeting session.
European stocks showed negative tendency on Wednesday morning, and Greek shares prolonged their sell-off following the victory of Syriza party on Sunday. Stocks of Piraeus Port Authority, the biggest port in Greece, dropped 8.3%, as the new government would block plans of privatisation. FTSEurofirst 300 index dipped 0.1% to 1,474.36 points.
Strongly depressed crude oil prices and the labour market that added around three million jobs in the previous year, pushing the level of unemployment to a six-year minimum, are increasing the optimism regarding the domestic economy. Consumer confidence reached the seven-month high in January, jumping to 102.9 from 93.1 recorded in December.
German's Chancellor Angela Merkel announced positive economic outlook due to strong drop in oil prices and the ECB-led quantitative easing measures. Therefore, Germany's economy probably will advance 1.5% compared to a 1.3% forecast in October also due to an increase in consumer spending and wage growth. The ministry is expecting oil prices around 59 dollars per barrel.
The unexpected fall in fuel costs is an advantage to households, while the impact on companies is not as obvious. Consumer confidence index advanced to its seven-years high in January due to a sharp fall in oil prices and improving labour market. However, durable goods orders unexpectedly plunged 3.4% in December.
The cost of living in Australia increased more than expected, decreasing the need for the Cental bank to cut interest rates. According to the Statistics Bureau the core price level gauge increased 0.7% compared to the previous quarter, when the growth was equal to 0.3%.
Gold traded almost the same near the highest level in five months, since investors are weighting the outlook for US interest rates before the Fed's two-day meeting. The yellow metal for April settlement was at $1,291.20 an ounce as of 7:46 New York time on the Comex, after touching $1,307.80 on January 22, the strongest since August.
Wolfgang Schaeuble, Prime Minister of Germany, stated that Greece can forget about the reduction of their debt, since there is no tension on public finance for the following five years. After the European finance ministers meeting in Brussels, Schaeuble said that nothing changed for Greece's European creditors, even after Syriza victory in the January 25 Greek election.
Bonds and stocks in Greece dropped for a second day, since the nation's new leader had a clash with finance ministers of Euro zone over the funding needs. Greek shares declined for a second day, stopping their Friday advance. The benchmark ASE Index fell 3.7%, while National Bank of Greece SA, Alpha Bank AE, Eurobank Ergasias SA and Piraeus Bank
President of Goldman group, Gary Cohn, believes that oil prices will continue to decrease and reach $30 a barrel. West Texas Intermediate futures for March settlement declined 44 cents to close at $45.15 a barrel, the weakest delivery since March 2009, and crude dropped almost 60% since June.
Yellow metal futures climbed while US durable goods slumped as a result of flagging growth in foreign economies that weighs on the US recovery, thus boosting attractiveness of high-quality assets. Bullion futures for April settlement advanced 0.6% to $1,287.80 an ounce as of 9:20 a.m. in New York on the Comex.
The head of Saudi Arabian Oil Co. stated that Saudi Arabia will not balance global oil markets single-handedly, since prices decline "too low for everybody". This also threatens the investment that is needed in order to meet long-term demand. The OPEC decided to keep its production target the same during the November 27 meeting to protect market share.
The Dollar depreciated from its strongest point on record, when US durable goods orders dropped 3.4% in December. The greenback weakened versus most of its major peers, and the Bloomberg Dollar Index declined 0.5% to 1,156.24 by 8:58 a.m. in New York, closing at the record 1,161.42 on January 26.
Economic growth in the UK decelerated more than economists estimated, with the lowest quarterly pace of 0.5% on a yearly basis. However, even with this figure the UK economy recorded its best performance since 2007. Meanwhile, the International Monetary Fund announced that the country is going expand 2.7% this year.
Chinese industrial companies' profits dropped 8% in December compared to the previous year, showing the biggest decline in three years and emphasizing slowing economy and harsh drop in commodity prices. As a result, coal mining profit diminished by 46.2% in 2014, while oil, as well as nuclear fuel, lost 79.2%. However, profits in vehicle production rose by 18.1%.
US house prices increased at a slower pace even with affordable low mortgage interest rates. The S&P/Case-Shiller home price index added 4.3% since November 2013. Moreover, property prices weakened last year, since home sales decreased, while demand was brought down by relatively soft wage growth and small amount of household formation.
US stocks declined on a slide in durable goods orders and unpromising earnings results, exacerbating concerns regarding the economic growth. Caterpillar fell 7.2% together with Microsoft that lost 8.8%, while the S&P 500 dropped 1% to 2,036.68 and the Dow Jones Industrial Average slipped 1.3% or 234.91, to 17,443.79.
Sight deposits at the SNB climbed almost 8% previous week, indicating that the central bank keeps purchasing foreign currency following cancellation of its three-year-old cap on the Franc. SNB's data report showed that sight deposits added to 365.5 billion francs during the week ending January 23, compared with 339.6 billion francs recorded a week earlier.
Brazilian Real dropped for a second day, while a dimmed GDP growth outlook made the assets of South American nation less attractive for international investors. Brazil's Real weakened 0.7% to 2.5983 against the Dollar in Sao Paulo, while economists revised downwards their forecasts for GDP growth in 2015 from 0.38% to 0.13%.