Gold is steady in the Wednesday session, following sharp losses on Tuesday. In North American trade, the spot price for an ounce of gold is $1329.08, down 0.05% on the day. On the release front, all eyes are on the Federal Reserve, which will release the January minutes later in the day. Earlier, Existing Home Sales disappointed, dropping to 5.38 million. This was well short of the estimate of 5.61 million. On Thursday, the US will release unemployment claims. Gold prices remain under pressure, as the metal has lost 1.5% this week, erasing much of last week’s gains. Concerns that strong US numbers could stoke inflation andRead More →

The British pound has posted losses in the Wednesday session. In North American trade, GBP/USD is trading at 1.3946, down 0.37% on the day. On the release front, British employment numbers were solid. Wage growth remained at 2.5%, matching the forecast. Unemployment rolls declined 7.2 thousand, crushing the estimate of a 2.3 thousand gain. However, the unemployment rate ticked up to 4.4%, above the estimate of 4.4%. In the US, the key event is the Federal Reserve minutes from the January meeting. Earlier, Existing Home Sales disappointed, dropping to 5.38 million. This was well short of the estimate of 5.61 million. On Thursday, the UKRead More →

OANDA Senior Market Analyst Craig Erlam talks to Core Finance about the recent bearish break in GBPJPY and whether it signals more pain ahead. He also previews the UK jobs data and Bank of England inflation report hearing and what they could mean for interest rates this year. USD/JPY – Japanese Yen Edges Lower as Japanese Manufacturing PMI Dips BoE Hearing and Fed Minutes in Focus DAX Under Pressure, Investors Eye Fed MinutesRead More →

U.S. home sales unexpectedly fell for a second straight month in January, weighed down by a persistent shortage of houses that is pushing up prices and keeping first-time buyers out of the market. The National Association of Realtors said on Wednesday that existing home sales dropped 3.2 percent to a seasonally adjusted annual rate of 5.38 million units last month. December’s sales pace was revised down to 5.56 million units from the previously reported 5.57 million units. Economists polled by Reuters had forecast existing home sales rising 0.8 percent to a rate of 5.60 million units in January. Sales fell in all four regions lastRead More →

The dollar rose to its highest level in a week on Wednesday and world stocks fell for the third day as investors braced for minutes from the Fed’s last policy meeting to see if they would herald more rises in interest rates and global bond yields. Wall Street looked set for a weaker session, with equity futures down around 0.2 percent and the VIX volatility gauge up for the third day in a row. The dollar index, which measures the greenback against a basket of peers, rose 0.2 percent. The index has bounced almost 1 percent so far this week, after slumping 1.5 percent theRead More →

The UK has seen the strongest two quarters of productivity growth since the recession of 2008, according to the latest data. Output per hour rose 0.8% in the three months to December, the Office for National Statistics said. It follows growth of 0.9% in the previous period. There was also a better than expected rise in wages. Excluding bonuses, earnings rose by 2.5% year-on-year. However, unemployment edged higher, but still remains low at 4.4%. The growth in productivity – as measured by the amount of work produced per working hour – will provide encouragement to policy makers who have wrestled with the challenge of lowRead More →

Eurozone business activity continued to rise at a steep pace in February, albeit with the rate of expansion cooling from the near 12-year high recorded in January. Price pressures and employment growth also remained elevated, though likewise saw rates of increase ease slightly. Business optimism about the coming year meanwhile ticked higher. The headline IHS Markit Eurozone PMI fell from 58.8 in January to 57.5 in February, according to the estimate, which is based on approximately 85% of usual final replies. The slower growth of business activity reflected an easing in the rate of increase of new orders which, while elevated, slipped to a five-monthRead More →

Theresa May has been warned Britain cannot become simply a “ruler-taker” after Brexit, in a letter signed by 62 Tory MPs including Jacob Rees-Mogg this week. The letter urged Theresa May to stick to the Brexit ideals outlined in her rousing Lancaster House speech one year ago. The Tory MPs offered their “continued and strong” support for Mrs May’s leadership before strongly suggesting six ways in which the PM could strengthen the country’s position. The letter was written by former Remainer John Penrose and signed by another 61 MPs, including hardline Brexiteer Mr Rees-Mogg, former cabinet member Priti Patel and former party leader Iain DuncanRead More →

The DAX index has posted losses in the Wednesday session. Currently, the index is trading at 12,428.50 down 0.48% since the Tuesday close. On the release front, German and Eurozone Manufacturing PMIs slowed in January. The German PMI dipped to 60.3, shy of the estimate of 60.6 points. It was a similar story with the Eurozone PMI, which dropped to 58.5, shy of the estimate of 59.2 points. In the US, the key event is the Federal Reserve minutes from the January meeting. It continues to be a blue February for the DAX, which has declined 6.2% so far this month. The correction on the US stock marketsRead More →

Yield-o-Mania Global yields ratcheted higher after a stronger than expected jump on Germany’s PPI which bolsters the hotter than expected comprehensive inflation narrative. But it was the jump in US 2-year note yields that provided the extra boost to the US dollar as shorter-dated tenors provides investors with better goalposts for determining how the market is viewing Fed sentiment However, the lukewarm demand for two-year notes at auction and with supply concerns expected to weigh heavy on investor bond appetite this week, we could see the dollar back under pressure. Of course, traders are erring on the side of caution ahead of the release ofRead More →