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18 Oct 2013
Commodities under a broader consolidation mode, greenback tumbles
FXstreet.com (Athens) – Both gold and oil prices move in consolidation shift trend on Friday, whilst the greenback is severely wounded across the board for a second consecutive day.
The dollar fell against the euro on Thursday to its lowest in more than eight months as the end of the U.S. debt stalemate shifted focus to the impact of the government shutdown and the likelihood that Federal Reserve stimulus will stay in place. But still on Friday, since the kick off of the Asian opening trading session the American dollar is tumbling across the board, as US Treasury yield curve continues to flatten. While the EUR/USD earlier broke the resistance as of 1.3700 – even for a little time – gold and oil prices move little changed compared to their initial kick-off on the Asian trading session. Briefly, gold is trading at 1317.90, down 0.17%, while crude is heading upwards at 101.47, up 0.78% as well as Brent which moves at 110.04, down 0.97%. Yesterday, U.S. oil prices settled at their lowest level in more than three months on Thursday as stockpiles in the Cushing, Oklahoma, and oil hub began to reverse a months-long decline, and as signs of progress in talks over Iran's nuclear program also pressured prices. Last but not least, gold prices surged 3 percent on Thursday, boosted by a dollar slide and expectations that a temporary deal to avoid a U.S. debt default might prompt the Federal Reserve not to reduce its monetary stimulus.
The dollar fell against the euro on Thursday to its lowest in more than eight months as the end of the U.S. debt stalemate shifted focus to the impact of the government shutdown and the likelihood that Federal Reserve stimulus will stay in place. But still on Friday, since the kick off of the Asian opening trading session the American dollar is tumbling across the board, as US Treasury yield curve continues to flatten. While the EUR/USD earlier broke the resistance as of 1.3700 – even for a little time – gold and oil prices move little changed compared to their initial kick-off on the Asian trading session. Briefly, gold is trading at 1317.90, down 0.17%, while crude is heading upwards at 101.47, up 0.78% as well as Brent which moves at 110.04, down 0.97%. Yesterday, U.S. oil prices settled at their lowest level in more than three months on Thursday as stockpiles in the Cushing, Oklahoma, and oil hub began to reverse a months-long decline, and as signs of progress in talks over Iran's nuclear program also pressured prices. Last but not least, gold prices surged 3 percent on Thursday, boosted by a dollar slide and expectations that a temporary deal to avoid a U.S. debt default might prompt the Federal Reserve not to reduce its monetary stimulus.