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Gold and Oil Markets Report – 13 April 2015

A guest post written by DAR Wong and Chong HC

Gold prices have been dropping from 1224.00 regions last week after debating news of delayed rate hike from FED policymakers. Dollar index rises again and puts lids on Crude and general commodity prices. Chinese government allows the maximal limit of funds to flow into Hong Kong markets, lifting the Hang Seng Index to 7-year high record at index 27,922 last week. This week, we reckon most commodities may fall due to favor of equity indexes as limelight.

Crude Oil

WTI Crude prices fizzled out at 54.00 tops last week due to stronger greenback. This week, we have identified 49.50 supports to be the gatekeeper while market may move into sideways consolidation. Breaking below 49.50 supports will indicate new selling pressure and probably unwind the market at 46.00 regions again. Long traders should...

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Bank of England Holds Policy Unchanged

A guest post written by DAR Wong

Currency Market Observations - 13 April 2015

Fundamental Outlook

The US jobless claims increase as worsening job data may delay the rate hike policy. Japan stock index receives incoming funds for hitting 20-year high record. UK progresses in steady recovery as the country moves into May election. Bank of England remains policy unchanged to hold the growth.

The US Institute of Management of services index stayed firm at 56.5 in March and remained above index 50.0 as sign of expansion. Weekly claims for jobless benefits recorded 281,000 in the week ended 4 April. Wholesale inventories rose 0.3 percent in February and higher than expectation, underscoring slowdown in market demand.

The US FOMC minutes reveals no immediate rate hike though the credit tightening may come later in the year. However, the slowdown of payroll growth in March has triggered debates...

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Gold and Oil Markets Report – 06 April 2015

A guest post written by DAR Wong and Chong HC

The market went through short week due to Good Friday. Gold has been mild bullish while non-reactive on Friday’s non-farm data due to market closure. American payrolls created far lower than expected jobs at 126,000 in March and surprised market traders. This could be another good reason to stall credit tightening by FED policymakers. Crude oil has been poising for balance at 50.00 regions as Dollar closed at 4-week low for correction. The initial agreement between United Nations and Iran for terminating nuclear deal may trigger oil prices fall in near future.

Crude Oil

WTI Crude prices have found immediate support at 47.00 regions while closed at 49.00 regions for weekend. This week, we reckon the range will be constricted from 47.00 – 52.50 regions with no clear sign of direction. Sideways...

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American Payroll Slides Unexpectedly amid Holidays

A guest post written by DAR Wong

Currency Market Observations - 06 April 2015

Fundamental Outlook

The US payroll surprises in decline and far below prior month. Japan reveals stagnation in growth among large manufacturers amid more stimuli from central bank. Euro zone posies in steadiness from inflation outlook while UK shows contradiction in housing demand cum supply.

The US pending homes sales rose 3.1 percent in February and gained for a second straight month after advanced 1.2 percent previously. Personal spending improved 0.1 percent after it was contracted to minus 0.2 percent in January.

The US Conference Board of consumer confidence was reported at 101.3 in March and better than revised 98.8 in prior month. Weekly claims for state unemployment benefits dropped 20,000 to a seasonally adjusted 268,000 for the week ended March 28, lower than prior week data at 288,000.

American...

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Gold and Oil Markets Report – 30 March 2015

A guest post written by DAR Wong and Chong HC

Last week, Gold surged in recovery but met some profit-taking before weekend and settled on brim of USD1200.00 /oz. Crude prices recovered after the Saudi Arabia launched attack on Yemen extremist militants. The USDX has been trading lower from previous high 100.00 benchmarks and hovers around 97.00 areas that put supporting forces on general commodity prices. FED Yellen reassures on no immediate rate hike though it might come later this year.

Crude Oil

WTI Crude prices jumped up to 52.00 regions last week while settled at 48.000 for the weekend. This week, we have identified strong support at S1 – 45.00 and S2 – 42.00 levels while the resistances will emerge at 54.00 regions. Basically, the market trend is still unclear though some news could be driving the prices within this band....

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Japan Slows Down Inflation for 7 Months

A guest post written by DAR Wong

Currency Market Observations - 30 March 2015

Fundamental Outlook

The US new home sales show recovery while consumer inflation gains in mild sentiment. FED Yellen reiterates on rate hike that will come only later of this year. Japan slows down in consumer inflation amid more expectation of stimuli from citizens. UK economy projects uncertainty in uneven recovery.

The US existing home sales grew 4.88 million in February from a year ago and below forecast. Another report on new home sales rose 539,000 from a year ago after it was revised at 500,000 annualized gains in January. Consumer prices grew by 0.2 percent after contracted at minus 0.7 percent changes in January. Excluding food and energies, core prices also rose by 0.2 percent and higher than forecast.

American orders for durable goods pulled down Dow Jones benchmarks after...

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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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