Raw materials - energy crude oil reverses prior losses on Fed speculation crude oil (WTI)-$ 82.00 / / $0,23 / / 0.28% commentary: A stunning reversal, crude oil and had equity losses amortize a significant part of Wednesday. Oil ended Thursday's session $2.28 or 2.87%, to settle higher to $81.77. The catalyst has been speculated, relating to the Fed expected monetary easing at the next meeting in November. Some market commentators are calling the fed to $100 billion in treasuries per month to buy. Such an enormous level of quantitative easing would as bullish for risk-weighted assets are seen as a more stimulating economic environment, in addition to stoke fears of future inflation across the Board would create it. Nevertheless, any speculation on what will do the Fed is just that - speculation. The greater upward trend in crude oil and stocks started in August, well before there was no evidence that the u.s. Federal Reserve would take meaningful action. Rather have dealer was promoted by economic data has been while choppy, less worse than expected. Recent earnings reports from American companies have been encouraging, with profits holding up in large part thanks to growth outside the U.S. shadow by the broader risk trends of U.S. was crude oil inventory report. The report was fairly neutral, but the bullish trend of declining surplus was largely on an uptick in imports and depressed levels of demand. In fact, we have seen that in the last four weeks, oil demand down a remarkable 0.5% was Year-Over year, the first such decline since early this year. We continue to constructively on crude oil, but not buyer would lower levels close to the low to Center$ 70's. The ample supply image should keep prices of run away while supports robust global growth rates. Technical Outlook: prices found support at $79.21-the 38.2% Fibonacci retracement of the 8/25-10/07-rally - the congestion area enter again, had limited since the beginning of the month. Short-term resistance lines up in the $82.97-$ 84.43-region. Reversing back by 38.2% level provides initial support at $77.60, the 50% Fibonacci.
Raw materials - metals gold climbs on risk reversal gold$ 1342.25 / / $4.00 / / gold maintained its role as anti dollar Wednesday, rising $14.20 or 1.07% 0.30% commentary: one day, in which the greenback declined 1.3% compared to the trade-weighted dollar index. The one-month rolling correlation between US dollar and gold remained therefore strongly to 0.96. But correlations aside, seeks gold regardless of what the dollar from here out not foamy. We have seen periods where gold and the dollar have had a strong negative correlation, as you now have and periods, if you, have had a strong positive correlation such as in August. The point is, must the dollar not sensibly higher form again in order for gold to fall from here useful lower. That being said, is the trend in gold later, until the falling prices put a compelling string. A great day, followed by a day nothing is more than normal fluctuation within an upward trend. Technical Outlook: prices have a flat rest for help with $1332.99, looked at the 23.6% Fibonacci retracement of the advance 7/28-10, 14, with continuing upward trend $1355.65-level staged. In addition lines resistance up to the top of a broken increasing channel, which in place end of September, now at $1370.68 been was. Silver$ 23.73 / / $0,23 / / 0.94% commentary: Silver moved in step with gold, rising $0.59 or 2.5%, as the metal part of the previous day almost 4% decline again. Prices are trading back down in accommodation, however, and we will look to see whether the metal can maintain now lower prices. In the longer term the interest of investors in silver, and the resulting increase in silver ETF should be solidarity farms, prices. Speaking of long-term fundamentals, a Bloomberg report proposed that China can reduce its silver exports by 40%. The perpetrators cancellation increases an export rebate according to the report, domestic demand in expectation of inflation and the 2008. We will see. The gold/silver ratio is now 56,4, close to the lowest level since August 2008. (The ratio measures the relative performance of gold and silver) (A higher number indicates gold outperformance while a lower number indicates silver outperformance). Technical Outlook: prices recover from horizontal support at $23.43, $24.00-to test picture. The resistance at $24.33 exposes a higher breakout the next layer. Alternatively the renewed sale to intersect of a decreasing channel from this month's founded swing high and a rising trend line by end of August in the vicinity of $23.00 goal.
For real time news and analysis, please visit http://www.dailyfx.com/real_time_news get future articles by e-Mail, please contact Ilya at ispivak@dailyfx.com
View the original article here
No comments:
Post a Comment