• Tag Archives Euro
  • Gold Price Slips vs. Falling Dollar as Oil Bounces, Bank of England Split Boosts ‘Brexit-Hit’ Pound

    Gold prices held near 5-week lows against a falling US Dollar on Wednesday, trading at $1243 per ounce as commodities rallied but world stock markets extended Tuesday’s retreat in New York.
    As Brent crude oil rallied $1 per barrel from yesterday’s 7-month lows near $45, that pulled the EuroStoxx 50 index of major European shares more than 1% lower.
    The British Pound meantime rallied after a split emerged amongst senior Bank of England policymakers over holding or raising UK interest rates from the current all-time record low of 0.25% with 435 billion ($550bn) of quantitative easing bond purchases.
    Check out Global Liquidity Reaching a Tipping Point
    The Euro currency also rallied against the Dollar but held 1 cent below last week’s peak, the highest level since Donald Trump won the US presidential election last November.
    The gold price for Eurozone investors fell below 1115 per ounce, near its lowest level since January.

    This post was published at FinancialSense on 06/21/2017.


  • Global Equity Markets Firmer As Oil Stabilizes, Greece Gets Bailout Money

    (Kitco News) – World stock markets were mostly higher overnight. Crude oil prices are firmer today, which helped out the equities. Also, Greece’s creditors approved another release of bailout money for the indebted country, which assuaged European investors. U. S. stock indexes are pointed toward slightly higher openings when the New York day session begins.
    Gold prices are modestly up in pre-U. S. market trading, on a technical and short-covering bounce from solid selling pressure seen earlier this week.
    In overnight news, Russia’s central bank cut its key interest rate by 25 basis points. The Russian ruble rallied on the news.
    The Bank of Japan held its regular monetary policy meeting Friday and made no major changes in its policy.
    The Euro zone’s consumer price index for May was reported down 0.1% from April and up 1.4% from a year ago. The numbers were right in line with market expectations but down from the European Central Bank’s target rate of around 2.0% annual inflation.

    This post was published at Wall Street Examiner on June 16, 2017.


  • Reflation, Deflation and Gold

    One of the most important economic debate today is whether the economy will experience reflation or deflation (or low inflation) in the upcoming months. Has the recent reflation been only a temporary jump? Or has it marked the beginning of a new trend? Is the global economy accelerating or are we heading into the next recession? It goes without saying that it is a key investment issue because of the implications for different asset classes, including the precious metals. Let’s try to outline the macroeconomic outlook.
    As one can see in the chart below, inflation has recently risen both in the U. S. and the euro area. And inflation in the UK has really accelerated recently. It’s true that there was a slowdown in the U. S. after a peak in February, but the level of inflation rates remains much higher than in 2014-2015.
    Chart 1: The CPI rate year-over-year for the U. S. (blue line), the Eurozone (red line), and the UK (green line) over the last ten years.

    This post was published at GoldSeek on 16 June 2017.


  • Fear of Contagion Feeds the Italian Banking Crisis

    At first, deny, deny, deny. Then taxpayers get to bail out bondholders.
    By Don Quijones, Spain & Mexico, editor at WOLF STREET.
    Spain’s Banco Popular had the dubious honor of being the first financial institution to be resolved under the EU’s Bank Recovery and Resolution Directive, passed in January 2016. As a result, shareholders and subordinate bondholders were ‘bailed in’ before the bank was sold to Santander for the princely sum of one euro.
    At first the operation was proclaimed a roaring success. As European banking crises go, this was an orderly one, reported The Economist. Taxpayers were not left on the hook, as long as you ignore the 5 billion of deferred tax credits Santander obtained from the operation. Depositors and senior bondholders were spared any of the fallout.
    But it may not last for long, for the chances of a similar approach being adopted to Italy’s banking crisis appear to be razor slim. The ECB has already awarded Italy’s Monte dei Paschi di Siena (MPS) a last-minute reprieve, on the grounds that while it did not pass certain parts of the ECB’s last stress test, the bank is perfectly solvent, albeit with serious liquidity problems.

    This post was published at Wolf Street by Don Quijones ‘ Jun 16, 2017.


  • The Fate of Britain – Is This Why Cable Goes to Parity?

    We have prepared a very important special report on Britain in the wake of the British election. This special report covers the forecast for the British pound (otherwise known as cable or sterling) against the dollar, euro, and the Japanese yen. Additionally, this covers the long gilts and the share market. We have also addressed the rising tensions once again in Northern Ireland that may reignite violence.

    This post was published at Armstrong Economics on Jun 16, 2017.


  • Gold Market Morning: June-16-2017: Gold stabilizing after the Fed

    Gold Today – New York closed at $1,254.60 yesterday after closing at $1,262.70 Wednesday. London opened at $1,255.70 today.
    Overall the dollar was slightly stronger against global currencies, early today. Before London’s opening:
    – The $: was slightly weaker at $1.1174 after yesterday’s $1.1164: 1.
    – The Dollar index was slightly stronger at 97.34 after yesterday’s 97.28.
    – The Yen was weaker at 111.31 after yesterday’s 109.65:$1.
    – The Yuan was weaker at 6.8152 after yesterday’s 6.8019: $1.
    – The Pound Sterling was stronger at $1.2774 after yesterday’s $1.2696: 1.
    Yuan Gold Fix
    While London and New York are holding yesterday’s [after the Fed] levels Shanghai has pulled back but not so far and we are now seeing New York $6 lower than Shanghai and London also $6 lower than Shanghai today. This is basically a repeat of yesterday’s differentials.
    Certainly Shanghai did not pull gold back as much as the other centers on the back of the Fed’s rate rise and statement. It does appear that this move in U. S. rates is now factored in.
    Silver Today – Silver closed at $17.13 yesterday after $17.13 at New York’s close Wednesday.
    LBMA price setting: The LBMA gold price was set today at $1,256.60 from yesterday’s $1,260.25. The gold price in the euro was set at 1,124.42 after yesterday’s 1,128.75.
    Ahead of the opening of New York the gold price was trading at $1,255.00 and in the euro at 1,124.25. At the same time, the silver price was trading at $16.78.

    This post was published at GoldSeek on 16 June 2017.


  • EU Wants to Order All Euro Trading Moved from London to Paris

    The European Union is preparing the legal basis to take over London’s extensive trading business with euro derivatives. This is just another complete failure of bureaucrats to comprehenmd market function. Perhaps they should also outlaw euro trading in the USA and Asia. That would be real smart. Then they can all sit down and play cards with euro themselves and guarantee it will never be anything to anyone else no less convertible worldwide.

    This post was published at Armstrong Economics on Jun 15, 2017.


  • Gold Prices Jump as Dollar Falls Before Fed on Weak US Data

    Gold prices popped to a 4-session high at $1277 per ounce Wednesday lunchtime in London as the US Dollar sank ahead of the Federal Reserve’s long-expected June interest-rate decision following weaker-than-forecast economic data.
    US retail sales fell in May, down 0.3% from April to defy analyst predictions of a slight rise.
    Consumer price inflation also slowed, pulling the official index 0.1% lower month-on-month with the cost of living rising 1.9% per year against 2.0% forecast.
    Silver also rose as gold prices jumped almost 1%, regaining the week’s previous 2.8% drop to trade at $17.24 per ounce.
    World equities rose after New York set new all-time record highs overnight, while the Dollar fell hard against the Euro on the FX market, with the single currency nearing early June’s 7-month highs above $1.12 to the greenback.

    This post was published at FinancialSense on 06/14/2017.


  • Gold Market Morning: June-13-2017: Gold waiting for the Fed tomorrow!

    Gold Today – New York closed at $1,268.90 yesterday after closing at $1,266.00 Friday. London opened at $1,262 today.
    Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
    – The $: was slightly stronger at $1.1212 after yesterday’s $1.1220: 1.
    – The Dollar index was slightly weaker at 97.04 after yesterday’s 97.13.
    – The Yen was slightly weaker at 110.16 after yesterday’s 109.94:$1.
    – The Yuan was slightly stronger at 6.7979 after yesterday’s 6.7985: $1.
    – The Pound Sterling was slightly weaker at $1.2700 after yesterday’s $1.2704: 1.
    Yuan Gold Fix
    New York closed lower than Shanghai yesterday and London opened lower than Shanghai as the gold price continues to consolidate slightly lower.
    Silver Today – Silver closed at $16.94 yesterday after $17.22 at New York’s close Friday.
    LBMA price setting: The LBMA gold price was set today at $1,261.30 from yesterday’s $1,269.25. The gold price in the euro was set at 1,124.55 after yesterday’s 1,131.44.
    Ahead of the opening of New York the gold price was trading at $1,263.85 and in the euro at 1,121.43. At the same time, the silver price was trading at $16.83.
    Gold (very short-term)
    The gold price should consolidate, in New York today.
    Silver (very short-term)
    The silver price should consolidate with a firm bias, in New York today.

    This post was published at GoldSeek on 13 June 2017.


  • The Next Financial Crisis Has Already Arrived In Europe, And People Are Starting To Freak Out

    Did you know that the sixth largest bank in Spain failed in spectacular fashion just a few days ago? Many are comparing the sudden implosion of Banco Popular to the collapse of Lehman Brothers in 2008, and EU regulators hastily arranged a sale of the failed bank to Santander in order to avoid a full scale financial panic. Sadly, most Americans have no idea that a new financial crisis is starting to play out over in Europe, because most Americans only care about what is going on in America. But we should be paying attention, because the EU is the second largest economy on the entire planet, and the euro is the second most used currency on the entire planet. The U. S. financial system is already teetering on the brink of disaster, and this new financial crisis in Europe could turn out to be enough to push us over the edge.
    If EU regulators had not arranged a ‘forced sale’ of Banco Popular to Santander, we would probably be witnessing panic on a scale that we haven’t seen since 2008 in Europe right about now. The following comes from the Telegraph…
    Spanish banking giant Santander has stepped in to the rescue ailing rival Banco Popular by taking over the failing lender for 1 in a watershed deal masterminded by EU regulators to avoid a damaging collapse.
    Santander will tap its shareholders for 7bn in a rights issue to raise the capital needed to shore-up Popular’s finances in a dramatic private sector rescue of Spain’s sixth-largest lender.
    It will inflict losses of approximately 3.3bn on bond investors and shareholders but crucially will avoid a taxpayer bailout.

    This post was published at The Economic Collapse Blog on June 12th, 2017.


  • Gold Market Morning: June-12-2017: Gold finds bottom and is reacting to currency moves now!

    Gold Today – New York closed at $1,266.00 Friday after closing at $1,279.50 Thursday. London opened at $1,267.00 today.
    Overall the dollar was weaker against global currencies, early today. Before London’s opening:
    – The $: was weaker at $1.1220 after Friday’s $1.1178: 1.
    – The Dollar index was weaker at 97.13 after Friday’s 97.44.
    – The Yen was stronger at 109.94 after Friday’s 110.37:$1.
    – The Yuan was slightly stronger at 6.7985 after Friday’s 6.7988: $1.
    – The Pound Sterling was weaker at $1.2704 after Friday’s $1.2720: 1.
    Yuan Gold Fix
    New York closed lower than Shanghai on Friday but Shanghai was higher today as the U. S. dollar started to weaken again. London opened lower than Shanghai but was off its bottom. The London price setting lifted the gold price up above spot this morning.
    Silver Today – Silver closed at $17.22 Friday after $17.41 at New York’s close Thursday.
    LBMA price setting: The LBMA gold price was set today at $1,269.25 from Friday’s $1,274.25. The gold price in the euro was set at 1,131.44 after Friday’s 1,139.76.
    Ahead of the opening of New York the gold price was trading at $1,269.15 and in the euro at 1,135.19. At the same time, the silver price was trading at $17.14.
    Gold (very short-term)
    The gold price should consolidate with a firm bias, in New York today.
    Silver (very short-term)
    The silver price should consolidate with a firm bias, in New York today.

    This post was published at GoldSeek on 12 June 2017.


  • China’s ‘official’ gold reserves unchanged for 7th straight month — Lawrie Williams

    Latest reports from the People’s Bank of China for May indicate that the World’s No. 2 economic power has kept its official gold reserve unchanged – at 59.24 million ounces (1,842.6 tonnes) – for the seventh successive month. Indeed China’s officially reported gold reserves have remained unaltered since the Chinese renminbi (or yuan) was confirmed as an integral part of the IMF’s Special Drawing Right (SDR) back in October last year. Currently the Chinese currency accounts for 10.92% of the basket of currencies which make up the SDR – the others are the US dollar 41.73%, the Euro 30.93%, the Japanese yen 8.33% and the pound sterling at 8.09%.
    The IMF notes on its website that the SDR was created in 1969 as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves – government or central bank holdings of gold and widely accepted foreign currencies – that could be used to purchase its domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets – gold and the US dollar – proved inadequate for supporting the expansion of world trade and financial flows that was taking place. Therefore it was decided to create a new international reserve asset under the auspices of the IMF.
    Although the idea was to create a new reserve currency as defined by the SDR basket, the composition of which is reviewed every five years, the inclusion of a currency in the basket does lend a degree of acceptance as a potential reserve currency in its own right, which is presumably why China was so keen for the renminbi to become part of the SDR basket. To help achieve this the Chinese central bank began to announce monthly additions to its gold reserves in the interests of transparency. Prior to that it had only announced its gold reserve increases at five or six year intervals saying that this additional gold, which it then moved into its official reserve, had been held in accounts which were outside the purview of its gold reserve reporting to the IMF.

    This post was published at Sharps Pixley


  • US Dollar Index, Gold, Silver, & Comey | Golden Rule Radio #22

    The following video was published by McAlvany Financial on Jun 8, 2017
    This week we recap the recent movement of gold as it breaks through a 6 year trend line and has multiple indicators showing very bullish. We cover silver’s movement as well as Platinum & Palladium. Super Thursday brings with it the James Comey testimony, European Central Bank Meeting, and the British Election, & more which will together have an impact on The Us Dollar Index, The Euro, & The British Pound. Thank you for listening to Golden Rule Radio


  • CoCo Loco! Spain’s Banco Popular Plunges, Suspended By Regulator and Sold To Banco Santander For 1 Euro

    Spanish bank, Banco Popular, has been declining in price for some time thanks to plunging earnings.
    Banco Popular’s bad loans totaled 35.7 billion euros ($38 billion) at 4Q, not a good sign. Flagging earnings and $38 billion in bad debt has resulted in declining stock prices and trading suspended by their regulator.
    And The Single Resolution Board agreed to the sale of Banco Popular for One Euro to Banco Santander. But even at One Euro, Banco Santander is not seeing any ‘bargain surge.’

    This post was published at Wall Street Examiner on June 7, 2017.


  • Euro Tumbles On Reports ECB Will Cut Inflation Forecasts

    EURUSD tumbled this morning, erasing the gains following US payrolls weakness on Friday, after reports that officials familiar with the matter said the ECB’s draft projections show slower consumer-price growth in the three years through 2019 versus March forecasts.
    ‘You saw the German bund jump with stocks right after that news, clearly,’ said Nacho Lopez, an institutional sales officer at brokerage Ahorro Corp. in Madrid, ‘It means we may hear a more conservative tone from the ECB at tomorrow’s meeting.’

    This post was published at Zero Hedge on Jun 7, 2017.


  • Euro Spikes As Headline-Reading Algos Go Wild Ahead Of ECB

    Well that didn’t last long. Just a few short hours after EURUSD dropped on reports that the ECB would cut its inflation outlook, headlines have hit saying the “changes are likely small” and EURUSD has spiked back towards the highes of the day…
    The Algos are busy today…
    Are they trying to run all the stops ahead of Draghi’s big day?
    SOURCE

    This post was published at Zero Hedge on Jun 7, 2017.


  • OECD: World Is Still Locked in a ‘Low-Growth Trap’ with Rising Inequality

    The Organization for Economic Cooperation and Development (OECD) just released its latest economic outlook which it sums up as ‘better but not good enough,’ noting that, since the financial crisis of 2008, global growth remains ‘below past norms and below the pace needed to escape fully from the low-growth trap.’ Projecting a modest pickup in global growth to 3.5 percent this year, the authors write:
    ‘After many years of weak recovery, with global growth in 2016 at the lowest rate since 2009, some signs of improvement have begun to appear. Trade and manufacturing output growth have picked up from a very low level, helped by firmer domestic demand growth in Asia and Europe, and private sector confidence has strengthened. But policy uncertainty remains high, trust in government has diminished, wage growth is still weak, inequality persists, and imbalances and vulnerabilities remain in financial markets. Against this background, a modest pick-up in global GDP growth is projected this year to 3 per cent, with an upturn in trade and investment intensity and improving outcomes in several major commodity producers.’
    The OECD’s outlook for the United States is GDP of 2.1 percent in 2017 with an uptick to 2.4 percent in 2018. That compares with OECD projected growth in the Euro area of 1.8 percent in both 2017 and 2018 while Japan is expected to grow at 1.4 and 1.0 percent, respectively, in 2017 and 2018.

    This post was published at Wall Street On Parade By Pam Martens and Russ Marte.


  • Gold and Silver Market Morning: June 6 2017 – Gold poised to attack $1,300!

    Gold Today – New York closed at $1,279.60 yesterday after closing at$1,278.20 Friday. London opened at $1,289.50 today.
    Overall the dollar was weaker against global currencies, early today. Before London’s opening:
    – The $: was slightly stronger at $1.1246 after yesterday’s $1.1264: 1.
    – The Dollar index was slightly weaker at 96.73 after yesterday’s96.77.
    – The Yen was stronger at 109.52 after yesterday’s 110.51:$1.
    – The Yuan was stronger at 6.7954 after yesterday’s 6.8036: $1.
    – The Pound Sterling was barely changed at $1.2904 afteryesterday’s $1.2905: 1.
    Yuan Gold Fix
    While New York saw the gold price rise a little it was Shanghai that gave the spurt to the gold price trading at $1,293 late in their day today. London was pulled up at the opening to just $4 below Shanghai.
    Silver Today – Silver closed at $17.57 yesterday after $17.52 at New York’s close Friday.
    LBMA price setting: The LBMA gold price was set today at$1,287.85 from yesterday’s $1,280.70. The gold price in the euro was set at 1,144.40 after yesterday’s 1,137.04.

    This post was published at GoldSeek on 6 June 2017.


  • Stocks, Bonds, Euro, and Gold Go Up – Precious Metals Supply and Demand

    Driven by Credit
    The jobs report was disappointing. The prices of gold, and even more so silver, took off. In three hours, they gained $18 and 39 cents. Before we try to read into the connection, it is worth pausing to consider how another market responded. We don’t often discuss the stock market (and we have not been calling for an imminent stock market collapse as many others have).
    The initial reaction in the US equities market (futures, as this was before the opening bell) was down. But it was muted, and then in a few hours turned around and the market ended even higher.
    Each stock represents a business. Presumably, if jobs growth was disappointing then this is bad for stocks on two grounds. One is that companies hire based on their revenue expectations. Slow or no hiring means slow or no revenue growth. The other is that people who aren’t hired don’t buy as much, and so there is a feedback loop into sluggish business revenue growth.
    However, the stock market disagreed. It said let’s cut the earnings yield a bit more, from 3.94% to 3.93%. This presumably means that earnings are set to take off (or it could mean that everyone from wage-earners who pour their surplus into the stock market to older speculators are not thinking about earnings yield).
    Not only did the stock market go up, so did the euro. As did US Treasury bonds. And, finally, gold and silver. What is the one thing that these all have in common?
    It is possible to borrow to buy these assets.
    We read this as a garden-variety day of credit expansion. Folks, this is how the monetary system is supposed to work, according to mainstream economic thought. Based on <insert story du jour>, people borrow to buy assets. This creates a wealth effect, as rising asset prices makes people (at least those who own those assets) feel richer. When they feel richer, they go out to eat more, buy more Rolexes and Porsches, and that employs everyone else. Or so their theory goes.
    Fundamental Developments
    Stock analysts have a wealth of material to study the fundamentals of public companies. We leave that work to them. We have a theory, model, and now a robust software platform to study and calculate the fundamentals of gold and silver.

    This post was published at Acting-Man on June 6, 2017.


  • Deposit Bail In Risk as Spanish Bank’s Stocks Crash

    – Deposit bail in risk as stocks and bonds of Spanish bank – Banco Popular – crash
    – Banco Popular stock crashes most on record – down 63% this year to 34 euro cents
    – Spanish bank tells employees – ‘Don’t panic’
    – Risk of Spanish banking crisis as Banco Popular credit curve inverts
    – Banco Popular needs to find at least 4 billion more capital – analysts
    – Deposits over 100,000 (euro) vulnerable to bail-in
    – EU, U. S., UK push for bank ‘bail-ins’ poses risks to depositors
    Banco Popular’s shares crashed another 17 per cent yesterday to record lows amid concerns the Spanish bank may have to be ‘wound down’ and could see bail-ins of investors and depositors.
    There are increasing fears that there is no buyer for the bank and this saw its share price dropped to 0.34 (34 euro cents). The bank’s stocks had already fallen nearly 50 per cent in the last week and is down 63% this year.

    This post was published at Gold Core on June 6, 2017.