Abundant supplies, Oil prices fell

Oil prices moved down in the Asian trading session. The flood of U.S. oil inventories helped weigh on the development of macro-economic outlook in the country with the world's biggest economy, obviously trader based in Singapore.

Release employment data on Friday (08/03) shows the number of workers increased 236 000 in February, compared with economists' expectations of 160,000. Another factor that allegedly helped depress prices is China economic data releases on the weekend that showed declining retail sales and industrial output, obviously trader.

Nymex crude oil futures to trade in a range of $ 90 - $ 93/barrel in the coming sessions. April Nymex crude oil futures contract fell 22 cents to $ 91.73/barrel. Brent crude fell 38 cents to $ 110.47/barrel.

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Yen above 96, Nikkei Lead Asia's Rally

Nikkei - Japan again led the rally in Asian trade earlier in the week (11/3) thanks again helped by a weaker yen which is now increasingly weakened in the range of 96 to the U.S. dollar (USD).

The headline Nikkei index observed to move in the area of ​​12392.81 or achieve a gain of +109.19 points after opening at 12363.09 level and shot up to a high of 12399.76. While the Yen is now perched at around 96.13 after the level dropped to 96.25 per dollar.

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Gold Weakens After U.S. Jobs Data Release

Gold futures moved down on Monday while U.S. employment sector data released on estimates positively impact economic growth prospects, and depressed safe-haven buying, despite the central bank is expected to continue to lift the economy in tahumn 2013.

Policy easing from the Federal Reserve has brought gold to a record high in recent years, as investors try to cope with high inflation estimates related to the printing of money the U.S. central bank.

Contract Spot gold fell 0.1% to $ 1,576.04 an ounce, recovering from a low for 2 weeks at the $ 1,560.80 in the previous session. U.S. gold futures fell 0.1% to $ 1,575.40.

source

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Kospi eroded weaker yen

 

He began trading earlier this week (Monday, 11/3) among exporters Korea - South re-injured by the impact of the weakening of the yen - Japanese for Korean and Japanese exporters face to face in competition in some markets.

In addition, the weakening Kospi - South Korea today also due to concerns about inflation in China increased significantly in February, although the data of industrial output and retail sales shrank. China's inflation surge was confirmed that the Chinese authorities need to take policy measures to dampen prices through monetary tightening, which would impact on the shrinkage of economic growth.

Since the beginning of the year, South Korea's automobile sector has been hit hard by the impact of the weakening yen, and today the sector again suffered after the yen dropped back to the level of 96.25 against the U.S. dollar Recorded Kia Motors Corp. stock. fallen to 1.8% and Hyundai Motor Co. dropped to 2.6%.

The major indexes tracked Kospi fell -0.15% or -2.17 points at 2003.60 area, while the Kospi futures down -0.70 points share in the range of 264.30.

 

source

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U.S. Economy Grows 0.1% In Q4

  
The U.S. economy showed almost no growth in the 4th quarter of 2012, according to Commerce Department reported Thursday. U.S. GDP 4 th quarter was revised up to 0.1% of the initial publication of -0.1%, down considerably when compared to growth of 3.1% in the 3rd quarter of last year.

Residential construction is more solid and the increase in exports was judged to have pushed growth into positive territory, and managed to offset a big drop in government spending and a significant slowdown in business inventories.
Shopping for new home construction was revised upward to 17.5% from 15.3%. Export revised to down 3.9% from the initial publication showed a decline of 5.7%, as well as imports was revised to down 4.5% from the 3.2% decline.

source

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Euro-Zone Inflation On Par with the ECB Target

Euro-zone annual inflation fell to the lowest level since November 2010, confirming an earlier estimate by Eurostat. Consumer prices fell 2.0% from January 2012, down from 2.2% in December, and on par with the ECB’s 2% inflation target. Consumer prices fell 1.0% in January on a monthly basis.
 

Greece saw the lowest annual inflation in January at 0.00%, while the Netherlands experienced the greatest inflation in the Euro-zone at 3.2%. Food, alcohol, and tobacco prices rose 3.2% annually, and energy prices rose 3.9% over the same period. 

 

The ECB has previously said that it expects inflation to fall to 2% in the coming months. ECB President Draghi has said that the lower inflation rate has allowed the central bank to remain accommodative. If Euro-zone growth continues to decline, the ECB might cut interest rates. Therefore, lower inflation is Euro negative. 
 

However, the Euro did not significantly react to the as expected inflation release. The Euro declined earlier in the session, as risk trends seemed to drop in currency markets, and EUR/USD is trading around 1.3120 at the time of this writing. Resistance may be provided by the first monthly pivot support line around 1.3184, and support may continue to be provided by the key 1.3000 level.

The other significant release out of the Euro-zone in today’s session was the decline in German unemployment. Even though the unemployment was better than expected, it still had no significant effect on Forex trading.
 

In Switzerland, the GDP grew by an unexpected 0.2% in the fourth quarter. However, EUR/CHF has dropped closer to the 1.200 SNB enforced floor in previous weeks on Euro weakness. Therefore, the release had no significant impact on the cross’s movement. 
 

Earlier in the day, we heard Japan’e DPJ’s Kaeida say that the party will debate BoJ candidates based on party guidelines, but the opposition party won’t necessarily delay appointments. The government nominated Kuroda to take over as BoJ governor during the Asian session, as was predicted by reports ahead of time. 

Source By Benjamin Spier

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Gold sales drop Haven Amid Global Improvement Risk Appetite

Gold fell after rising for two consecutive days due to selling jewelry businesses in a fairly high level of risk appetite amid improved conditions on global stock markets.

Bernanke's comments before the Senate that accommodative policies do not lead to a bubble in the U.S. stock market also helped trigger the U.S. stock market rally further this week. Moreover, consumer confidence and business positive euro zone, as well as improvement of German labor market had increased risk appetite sentiment.

Separately, the ECB president, Mario Draghi gives reassurance to investors that policies to tackle the European crisis will not be drawn to boost the euro zone economy.

Consequently improved risk appetite sentiment has weakened demand for safe-haven gold. Observed so far Gold spot price fell -0.66% at $ 1,586.88, after reaching its highest point at $ 1,602.90 and an intraday low of $ 1,586.52 daily per troy ounce.

Source

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