EUR and USD Updates

The common currency increased against the US dollar following the circulation of optimistic retail sales data from the United States.

However, profits were expected to be stable in the midst of speculations that the US will jack up interest rates earlier than usual.

The EUR/USD currency pair was recorded at 1.2955 during afternoon trading in European stock markets.

The pair later strengthened at 1.2952and grew 0.23%.

It will probably find support at 1.2858.

Official data revealed that retail sales in the US went up 0.6 percent in August. This is in accordance with market expectations. Retail sales in July showed a 0.3 percent gain from an approximate flat reading.

This data was publicized in the wake of hopes for an early increase of interest rates in the country.

The Federal Reserve is expected to reduce its asset purchase program by $10 billion during the next policy meeting.

Official data also underscored that production in the euro zone industrial production grew 1.0 percent in July. This surpassed expectations for a 0.5 percent gain after falling 0.3 percent three months ago.

Reactions on the euro varied after the ECB reduced rates across the euro zone last week.

British Pound Moves On

ufx.com british pound updateThe recent opinion’s polls indicate that the yes campaign is losing a bit of thrust over the last two days. Meanwhile the pound is regaining some of its missing ground overnight since the “Team Westminster” has ultimately acted together in an opinion poll. The Daily Record returned the negative votes back in the lead achieving 53% of voters that had given their decision.

The Royal Bank of Scotland and Lloyds spoke of their emergency plans to move to England if the positive vote is successful. It seems that the monetary insinuation of quitting the union is starting to strike on Scottish voters. The Vote will be out by next Thursday an expectation of volatility is still in the currency markets and sterling is influenced by the shifts in opinion polls awaiting the results.

The USD is strengthened by the US Fed discussing an interest rate increase that pressured the pound lower. The improving US economic data pushed down the GBP/USD that in turn pressed on the GBP crosses. The Yes voters of Scotland hope to make history during independence vote of next week that will clearly make the pound weaker.

Two advantages seen this week are: (1) a Scottish poll was No vote 5 pts ahead that the pound found immediate buyers; and (2) poor Chinese data upstaged the stronger Aussie employment figures. If the yes votes win – the GBP will plummet; if a No vote wins – the pound will be supported.

US Government Bonds Drops as Russia’s Ruble Plummets

The Fed’s move to increase interest rates may have caused government bonds to decline while the Russian currency toppled to an exceptional low in the midst of fresh restrictions.

The Aussie dollar was among higher-yielding currencies that dropped.

The ten-year yields in Germany increased by three foundation points to 1.1 percent at the New York stock market. Meanwhile, rates on parallel maturity treasuries reached a six-week peak of 2.58 percent.

STOXX Europe (600 Index) moved forward 0.2 percent. It broke a five day succession of losses while the index for US equities hardly moved.

On the other hand, up-and-coming market stocks waned for seven consecutive days after lending data from China trailed valuations.

The Australian currency went down by 0.6 percent to less than one US dollar. This was the lowest dating back to March 24.

US retailer sales rose 0.6 percent last month which was the quickest tempo during the last four months. This heightened potentials for high-level borrowing costs. ECB President Mario Draghi is scheduled to meet with euro zone finance ministers in Milan as the EU looks to implement more restrictions against Moscow.

The list of sanctions includes 15 multi-national firms.

There is a 60 percent probability that the Federal Reserve will boost its benchmark by July of next year. Meanwhile, yield on Treasuries expected within the next 10 years went up by climbed 10 basis points which were the highest since last month.

Gold and Silver News

ufx.com - precious commoditiesPrecious metal trades showed little changed selling at about $1,250 per ounce last Thursday after three days of consecutive losses.

Under pressure lately, gold prices have lost approximately 3.0% in so far as the start of September. It is weighed versus a stronger dollar within prospects of an additional hawkish Fed and abating tensions in Ukraine.

The yellow metal reached a recent low within 3-month at $1,243.79 last Wednesday prior to leveling in a tight range, topped by the amount of $1,250 area on its advantage. As of now, the spot of gold is trading at $1,249 per ounce remaining steadily unchanged until day.
The silver markets declined during Tuesday session as it continued plunging downward as seen for some time. Being the case, the market will finally discover some kind of support near the level of $18.80. This is an area that was strongly supported since June. Given more support, it could become an excellent long-term buying opportunity.
If, however, it breaks down below, the market should then be lowered to the level of $15.00 after enough time. For now, the market proves itself one way or the other before risking any money.