MORNING BRIEFING: Gold reaches record High!!

[RTFX-Trading]

MORNING BRIEFING: Gold reaches record High!!

What’s new:
Precious Metals: Gold reaches record High!!
Japan: Finance Minister Fuji says Yen level is not extremely abnormal.
Japan: FX reserves rise to record high in September.
United Kingdom: Weak Industrial and manufacturing production figures.
Euro zone: ECB Governing Council Member Weber calls on Asian nations to make their FX rates more flexible.
United States: FED’s Hoenig says it is too soon to pull stimulus, as US recovers.

Today:


Overnight Rates and Indices:
EURUSD: 1.4736 – 1.4684.
USDCHF: 1.0299 – 1.0258.
GBPUSD: 1.5937 – 1.5861.
EURJPY: 130.85 – 130.23.
USDJPY: 89.05 – 88.51.
DowJones: 9'731.25 +1.37%.
NASDAQ: 2’103.57 +1.71%.
S&P 500: 1’054.72 +1.37%.
Nikkei: 9’816.67 +1.29%.
Shanghai: 2’779.43 +0.90%,
Gold: $1042.05
Crude Oil: $71.43
 
Comments:

The dollar was on its back yesterday, as global equities rallied higher and following the RBA’s surprise hike early on Tuesday. Gold was the major mover as it reached record highs and is currently hovering around $1042. With the market expecting low interest rate policy in the US to be around for a while, an abundant supply of dollars is flowing into higher yielding currencies, such as the Australian Dollar.

ECB Governing Council Member Weber, said that emerging Asian nations need to make their FX rates more flexible. ECB members remain worried about excessive gains in the euro. Another member, Quaden, also voiced concern as he said disorderly movements of exchange rates are not welcome. Today, Final GDP figures from Q2 are expected from the Euro zone at 11:00 CET, and it is expected to show a contraction of 0.1% Q/Q.

Weak industrial and manufacturing production numbers hampered the Sterling yesterday. This ahead of the BoE MPC meeting tomorrow, were investors will be particularly interested in whether or not the BoE will increase their Quantitive Easing program.

Have a nice day.

Emman Xuereb
RTFX Ltd
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