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Gold and Oil Markets Report – 23 March 2015

A guest post written by DAR Wong and Chong HC

In FOMC meeting held last week, FED Chair Janet Yellen begged for more patience in market as US economy may need a credit tightening but not on immediate urgency. Dow Jones benchmark rose after her remarks as Bond yields fell. USDX declined from 100.00 regions to 97.00 levels as Gold recovered to 1180.00 prices. WTI Crude has begun in new fall as Crude inventories increased to 9.6 million barrels in weekly report ended 14 March.

Crude Oil

WTI Crude prices revisited a 6-year low at 42.06 last week before it settled at 46.50 on Friday. The market has formed a double bottom at 43.00 regions and should be supporting the market for the time being. However, the market sentiment is very mixed now as resistance emerges at 48.00 areas. Technically speaking,...

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FED Yellen Hints No Immediate Rate Hike

A guest post written by DAR Wong

Currency Market Observations - 23 March 2015

Fundamental Outlook

The US FED chair Yellen expresses no immediate rate hike though the credit tightening may be this year. Bank of Japan (BOJ) remains unchanged in policy amid more expected stimuli form market. Europe stays in looming economy despite Germany leads in economic recovery.

The US factory production grew 0.1 percent in February after it was revised to minus 0.3 percent in previous month. Building permits rose 1.09 million and higher than revised 1.06 gains in January. Housing starts were down to 900,000 from 1.08 million in January, underscoring weak recovery in American housing market.

The FED chair Yellen says the zero interest rate is about to end but the rate hike may not come yet in June. Market analysts reckon Yellen is keeping watch on job data, wages growth...

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Gold and Oil Markets Report – 16 March 2015

A guest post written by DAR Wong and Chong HC

The Dollar Index (USDX) has reached 100.00 benchmarks while Gold slides to 1150.00 supports. The yellow metal has been supported at the aforementioned bottom while the bears turn attention to Crude trend. Market traders are wary of imminent rate hike as comments aggravate in US market among FED's Fisher and Morgan Stanley's Zentner. As Gold stabilizes at 1150.00 areas, oil prices have begun to slide together with Dow Jones weakening.

Crude Oil

WTI Crude prices fell from 50.00 areas to 45.00 levels for weekend closing. The market may begin new fall in coming few weeks if it is unable to reverse above 50.00 levels. This week, we foresee the trend will be bearish and prone to wind down. Range is expected from 50.00 and down to 40.00 areas as our first target....

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Dow Jones Jitters amid Fear in Rate Hike

A guest post written by DAR Wong

Currency Market Observations - 16 March 2015

Fundamental Outlook

The US market players rekindle in fear of imminent rate hike while consumer sentiment drops. Japan commercial companies boost machinery and tools due to weakening currency amid more hope for weakening Yen. UK shows improvement in trade deficits but construction slows due to lesser housing demand.

The US wholesale inventories rose 0.3 percent in January probably due to a slowdown of consumer demand after year-end shopping seasons. Retail sales contracted 0.6 percent in February against a positive forecast. Excluding automobile sales, core retail sales also slid 0.1 percent.

American weekly jobless claims lowered in the week ended 7 March to 289,000 against prior revised 325,000. Another report on producer prices dropped 0.5 percent in February after 0.8 percent slide in January. Excluding food and energy, core prices also contracted...

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Gold and Oil Markets Report – 09 March 2015

A guest post written by DAR Wong and Chong HC

Rate hike fear returned to US markets on Friday after non-farm payroll surged 295,000 in February. Unemployment rate lowered to 5.5 percent while traders rekindled worries or credit tightening as early as in coming June. Yellow metal and Crude prices slid on Friday after USDX surged to new 11-year highs at 97.71 for weekend closing. European Central Bank (ECB) has remained rates unchanged at near to zero but announces the kick-start of monthly EUR60 billion stimulus fund from the week 9 March onwards.

Crude Oil

WTI Crude prices settled briefly below USD50.00 /barrel benchmarks for the week after it failed to break above 52.00 levels for closing. This week, we foresee the range will trade from 47.50 – 52.00 regions though it is more prone to bearish sentiment. Beware of violating beneath...

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America Improves in Job Creations

A guest post written by DAR Wong

Currency Market Observations - 09 March 2015

Fundamental Outlook

The US payroll adds 295,000 jobs with lowering unemployment rate. Manufacturing and consumer spending stagnate in America while jobless claims rise. European Central Bank has confirms the kick-off of new stimulus on this week to support covered bond purchase. UK economy shows steady recovery in housing demand with rising new mortgage loans.

The US Institute of Supply Management reports the manufacturing index slid to 52.9 in February and below expectation. Construction spending contracted 1.1 percent in January against prior month at positive 0.8 percent. Another report on personal income stagnated at 0.3 percent while the spending fell 0.2 percent from December.

The US Institute of Supply Management releases service index with growth at 56.9 in February after it rose to 56.7 previously. The weekly claims for jobless...

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Gold and Oil Markets Report – 02 March 2015

A guest post written by DAR Wong and Chong HC

Gold reversed up last week in mild buying interest with bottom formed at 1190.00 levels. The phenomena of stronger Dollar with yellow metal prices are returning but will put double pressure to energy and oil prices. Crude oil inventories continue to surge to 8.4 million barrels last week and put cap on Crude prices. On monthly chart, WTI Crude snapped the 7 long streak declines and closed at USD49.76 per barrel on Friday, enticing many analysts to believe Crude has bottomed out its fall.

Crude Oil

WTI Crude prices closed with reversal up-signal on monthly chart but still weak on daily chart. Immediate resistance stays at 51.00 levels in case of rising prices. The bulls have to clear above 51.00 before facing more selling challenges at 54.00 regions. This week, beware of...

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American GDP Revises Down to 2.2 Percent

A guest post written by DAR Wong

Currency Market Observations - 02 March 2015

Fundamental Outlook

The US inflation slides amid lower Crude prices and home recovery threads in fatigue. Growth has been revised down while Federal Reserve policymaker promises to give enough time for reaction to rate hike. Japan slows down in recovery with contracting inflation in-lieu of high expectation in market to see another new stimulus. European region stagnates.

The US existing home sales grew 4.82 million annualized rates in January after revised annualized rate hit 5.07 million in previous month. Another report by Conference Board of Consumer Confidence retreated to 96.4 in February from prior revised 103.8 reading.

Last week, Federal Reserve Yellen mentioned timetable for interest rates is flexible while employment data is not growing enough to hike rates. She promised plenty of time will be given to notify markets...

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Gold and Oil Markets Report – 23 February 2015

A guest post written by DAR Wong and Chong HC

Gold closed lower on weekly basis while Crude was resisted at 54.00 regions as we forecast last week. EIA report records growth in weekly crude supply by 7.7 million barrels in the week ended 14 February. Dollar index stays in small sideways with little effect on commodity. However, the grant of bailout extension to Greece by another 4 months has lifted the Dow Jones and European markets and may press Gold lower in coming week due to flight of funds.

Crude Oil

WTI Crude prices have revealed weakness in weekly and day charts. The market failed to conquer 54.00 resistances last week and might be heading down soon. Increasing supply and rising Dollar index might be the leading factors to push oil prices lower in coming weeks. Technically, we reckon the support...

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Greece Extends Deadline to work out Austerity

A guest post written by DAR Wong

Currency Market Observations - 23 February 2015

Fundamental Outlook

The US inflation stays weak while FOMC minutes show favor of policymakers leaning to near zero interest rates. Greece wins extended time to work out for debt repayment and has boosted equity prices. UK inflation improves with shrinking jobless claims while policymakers remain unchanged policy in support growth.

The US factory output climbed 0.2 percent while housing starts dropped rose to 1.07 million in January from a year ago, compared to revised 1.09 million in previous annualized data. Producer prices slid 0.8 percent in January after falling 0.2 percent in December due to falling Crude prices.

FOMC minutes release reports that near to zero rates will be maintained for a while since unemployment and low Crude prices have slowed down inflation growth. The Dow average benchmarks advanced 121.09...

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