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Gold and Oil Markets Report – 27 October 2014

A guest post written by DAR Wong and Chong HC

Crude prices continue to hover in weakness around 81.00 regions at weekend closing as Crude inventory rose to 7.1 million barrels in last week's EIA report. Gold prices slowed down in demand before the weekend as profit-taking appeared. Dow Jones benchmark shows strong recovery throughout whole week as short traders rushed into market to take profits. China and German manufacturing PMI helped to stabilize the market into positive sentiment after mid last week when both indicated recovery above median forecast.

Crude Oil

WTI Crude prices still seem to be strongly supported at 80.00 – 80.50 grounds though the market sentiment traded in weak demand last week. Moving forward, we still adhere to our technical view of expecting the range to move from 80.00 – 85.00 regions as short-covering may arise soon. However, beware of the...

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Bank of England Refrains from Increasing Interest

A guest post written by DAR Wong

Currency Market Observations - 27 October 2014

Fundamental Outlook

The US consumer prices still show slow recovery while manufacturing PMI slackens. China picks up in economic momentum while Europe begins asset purchase program. Bank of England (BOE) policymakers opt for no interest rate hike as economic growth is still below benchmark.

The US existing home sales advanced to highest level in a year, climbing up 2.4 percent in September to a 5.17 million annual rate, compared to 5.05 million growths in previous month. However, new home sales slowed after transactions stagnated at 467,000 sales in annual rate compared to previous month revised 466,000 sales.

American consumer-price index climbed 0.1 percent after decreasing 0.2 percent in August. Core prices slid 0.1 percent after excluded food and energies. Inflation check is an important indicator to gauge the recovery rate of ailing economy. The...

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Gold and Oil Markets Report – 20 October 2014

A guest post written by DAR Wong and Chong HC

General commodities stayed resilient last week as central banks worldwide reiterated stimulus or lower interest rates to sail through economic recovery. Gold tried hard to test 1250.00 resistances while Crude stays above 80.00 floor supports. EIA reports the weekly crude inventory grew 8.96 million barrels above forecast and put pressure on energy prices amid small technical recovery. USDX has been trading in sideways touching 84.00 supports amid some selling interest and manages to support commodity prices.

Crude Oil

WTI Crude prices are supported at 80.00 levels while market closed at 82.85 for weekend. Technically, we reckon the resistance will be very strong at 85.00 levels as market will be trading from 80.00 – 85.00 ranges. However, beware of overboard short-covering in case the buying sentiment breaks above 85.00 and reach 88.00 regions. Crude prices have...

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China will Inject New stimulus to Bank Lenders

A guest post written by DAR Wong

Currency Market Observations - 20 October 2014

Fundamental Outlook

The US job market continues to recover though other sectors remain sluggish. China pledges to inject second round of injection before year-end. Eurozone sinks into slowdown while Greece's sovereign debt returns in threat. UK surprises with inflation fall though job market has improved.

The US core retail sales in September contracted to minus 0.2 percent. Producer prices also slid to minus 0.1 percent against positive median forecast. However, budget deficit shrank in September to lowest record in last fiscal year with shortfall at USD483.4 billion compared with USD680.2 billion a year earlier.

US jobless claims for the week ended 11 October dropped 23,000 to 264,000 numbers. Job market continues to recover on weekly basis. Industrial production rose 1.0 percent in September and better than expectation. Another separate report on housing starts climbed...

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Gold and Oil Markets Report – 6 October 2014

A guest post written by DAR Wong and Chong HC

Commodities in Gold and Crude prices plunged after US shown better growth in payrolls in September. Gold erases the yearly gains since January while Crude broke the USD90.0 supports amid higher global supplies. In October, Crude may make its biggest slump in more than 2 years after Saudi Arabia signaled its willingness to start a price war with other OPEC members. The push-down on commodities prices is further aggravated by rising USD Index trend and recovering stock prices.

Crude Oil

WTI Crude prices have broken down below 91.00 strong supports and turned this price band into resistance now. This week, we expect the market to tease around 90.00 benchmarks initially but the emergence of new selling trend will easily take the trend down to 86.00 as our next targets. Pay attention to the OPEC fundamentals...

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The US Payroll Boosts Stock Rise

A guest post written by DAR Wong

Currency Market Observations - 6 October 2014

Fundamental Outlook

The US surprises market by robust growth in workforce that lifts the stock sentiments. Japan indicates optimism in capital spending among big manufacturers but consumer spending remains sluggish. Britain grows in economy amid widening deficit in current account.

The US conference board of consumer confidence dropped to 86.0 in September from revised 93.4 in prior month. The US Institute for Supply Management's index dropped to 56.6 from 59 in August, showing slowdown in factory momentum. Another service index from the same institute fell to 58.6 in September from the prior month 59.6, however holding the highest quarterly performance in Q3 average reading since the 2004.

American jobless claims slid 8,000 to 287,000 in the week ended 27 September. The monthly payrolls boosted 248,000 workers in September while unemployment rate was down to...

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Gold and Oil Markets Report – 29 September 2014

A guest post written by DAR Wong and Chong HC

Commodities whipsaw last week after the FED Yellen commented faster interest rates rise may come sooner. USDX trend persisted in climbing higher above 85.50 levels that put lid on both Gold and Crude prices. Dow Jones benchmarks also swung sideways after reacting to the war tension of attack against Syrian ISIS militant forces. Crude oil inventories shrank 4.3 million barrels in prior week but did not help to push the prices up in market.

Crude Oil

WTI Crude prices have been supported at 90.50 bottoms and prone to trade higher in little technical recovery. Strength in USD index has been major reasons for putting the demand at low levels while investors are following closely on the development of war tension in Ukraine in Syria. This week, we foresee the market will likely trade higher at...

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The US Grows 4.6 Percent Annualized Rates

A guest post written by DAR Wong

Currency Market Observations - 29 September 2014

Fundamental Outlook

The US homes sales fare inconsistently recovery while orders for durable goods slide. American growth gains highest since 2011. Japan stagnates in inflation growth though there has been slight gain after pushed by sales-tax rise. German slides in both essential economic data and nudges European Central Bank to plan quick stimulus before drastic slowdown.

The US existing home sales slid 1.8 percent to 5.05 million annual rates from 5.14 million rates in July. Another report on new home sales gained 504,000 in August and boosted the market housing confidence, after it jumped higher than prior month's revised date of 427,000 sales.

The orders for US durable goods in August dropped 18.2 percent and worse than median forecast. First-time jobless claims climbed 12,000 to 293,000 in the week ended 20 September, compared to revised...

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Gold and Oil Markets Report – 22 September 2014

A guest post written by DAR Wong and Chong HC

Gold declined again last week to 1220.00 regions as US stocks climbed to new historical highs. Weekly Crude inventories reported by EIA stocked up 3.7 million barrels that pushed the prices at low side. Last week, attention was staked at listing of Alibaba.com in NYSE and voting for independence in Scotland. They drove the US stock prices higher that edged the commodity prices lower and lifted US Dollar. Euro and Pound resumed into weakness on late session before weekend.

Crude Oil

WTI Crude prices tested the 95.00 resistances last week and fell as we expected. The market is still in low demand due to increasing weekly stockpiles and skyrocketing USDX trend. This week, the market is likely to trade sideways while range is still constricted from 91.00 – 95.00 areas. However, we foresee there might...

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Scotland Votes for Non-Independence

A guest post written by DAR Wong

Currency Market Observations - 22 September 2014

Fundamental Outlook

The US FED maintains path to cut another USD10 billion stimulus while Yellen vows to keep low interest rates. Japan improves in trade balance and increases national household asset net worth through the economic reforms. UK celebrates reunion after Scotland voted for non-independence and ended the worries of economic breakup with England.

The US industrial production shrank 0.1 percent in August against positive forecast. Producer prices grew at par in August after rising 0.1 percent in July. Core producer prices stayed stagnant at 0.1 gains in-line with previous month.

Another US inflation measure through consumer prices unexpectedly declined 0.2 percent in August and core prices stayed at par. The National Association of Home Builders/Wells Fargo sentiment climbed to 59 exceeding the highest estimate, from 55 in August.

American jobless claims decreased by 36,000...

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