- Overnight Interest Rate Update 02.09.10 Tue, 09 Feb 2010 05:24 GMT
- RICS Survey Hints UK House Prices May Decline as Supply Swells Tue, 09 Feb 2010 04:41 GMT
- UK Retail Sales Growth Worst in 15 Years in January, says BRC Tue, 09 Feb 2010 02:19 GMT
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- Feb, 09 Overnight Interest Rate Update 02.09.10
- Feb, 09 RICS Survey Hints UK House Prices May Decline as Supply Swells
- Feb, 09 UK Retail Sales Growth Worst in 15 Years in January, says BRC
- Feb, 08 Swiss Unemployment Highest Since 1998, Retail Sales Advance 4.7%
- Feb, 08 Overnight Interest Rate Update 02.08.10
- Feb, 05 U.S. Non-Farm Payrolls Disappoint, Jobless Rate Unexpectedly Contracts
- Feb, 05 Overnight Interest Rate 02.05.10
- Feb, 05 Euro Spikes Higher Against Swiss Franc, SNB Action Hinted
- Feb, 04 ECB Says Rates Appropriate, As Inflation To Remain Near 1.0%
- Feb, 04 ECB Says Rates Appropiate As Infaltion To Remain Near 1.0%
- Feb, 04 British Pound Pares Decline as BoE Suspends Asset Purchases, Euro Holds Rate at Record Low
- Feb, 04 Overnight Interest Rate Update 02.04.10
- Feb, 04 Australian Retail Sales Disappoint, Building Permits Rise on Stimulus
- Feb, 03 Overnight Interest Rate Update 02.03.10
- Feb, 02 Overnight Interest Rate Update 02.02.10
- Feb, 02 Australian Business Confidence Falls Most in 11 Months on China Outlook
- Feb, 01 U.S. Manufacturing Unexpectedly Expands at Faster Pace
- Feb, 01 U.K. Mortgage Approvals Unexpectedly Declines, EURGBP Snaps 4-day Decline
- Feb, 01 China Weekly 02.01
- Feb, 01 Overnight Interest Rate Update 02.01.10
OPENING COMMENT
The price action in gold continues to attract a lot of attention and has been directly impacting the currency markets as a result. On the day, it is therefore no surprise that the outperforming currencies have been the commodity bloc, led by the higher yielding Australian Dollar. Gold continues to surge in unrelenting fashion, now through critical psychological barriers at $1200 and towards $1220. The latest rally in the yellow metal has been attributed to an announcement from Barrick Gold, the world’s top gold producer, that it had eliminated its market hedges earlier than forecast due to its positive outlook on prices. It seems as though gold stands to benefit in any market environment, with demand seen both in risk aversion and risk appetite climates. Market uncertainty and fears of global instability make the commodity attractive on a flight to safety and hard assets, while market optimism and flight to risk also makes gold attractive on the growth story and demand for commodities. Elsewhere, we have seen some action on the geopolitical front with President Obama announcing that world security is at stake in Afghanistan, ordering 30,000 troops to be deployed into the region into 2010.
There has been more official speak on the Yen overnight, with BOJ Suda warning that FX instability to have a detrimental impact on the economy, while BOJ Shirakakwa and PM Hatoyama will be meeting later in the day to discuss the economy and currencies. Overall currencies are well bid, with only the Yen and Sterling tracking mildly lower against the back on the day.
Looking ahead, the European economic calendar is quite light, with the only key releases coming in the form of UK PMI (46.9 expected) at 9:30GMT, and Eurozone PPI (0.0% expected) at 10:00GMT. US equity futures point to a flat open, while commodities are well bid, led by record high gold prices.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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