14 MAY 2013: US RETAILS BOOST GLOBAL MARKETS
Arne Treholt Vice-President of Business Development and Investments
The dollar took a breather this morning after reaching near a five week-high against a basket of major currencies, DXY, on Tuesday. The greenback was boosted by surprisingly strong US retail sales in April which saw a rise in in households buying of cars, building materials and a range of other goods. The data pointed to the underlying strength in the US economy and led to increased optimism about a recovery in the world’s largest economy.
After rallying on Friday and Monday the USD took a pause and retracted 0.3% against the currency basket. Euro/USD trades at 1.3010 and USD/JPY stands at 1.0156. The slightly weaker dollar helped stabilizing commodity prices with gold gaining one percent to USD 1445 recouping losses from previous sessions. The stronger dollar is based on a recovery scenario for the US economy. A sluggish growth in emerging countries have kept commodity prices low.
The prospects for a firmer US recovery are likely to have a positive effect on the demand for commodities. There are also small signs of stability inside the struggling Euro zone. During yesterday’s bond auction Italian bonds fell to its lowest level since January. Investors backstopped by guarantees from the European Central Bank (ECB) and brushed off concerns about Italy’s political and economic troubles, pointing towards a normalization in financial markets.
After a two-day losing streak, Asian stocks again rose this morning. The Asian-Pacific MSCI-index is up 0,3% with Australian and South Korean stocks also climbing. The Japanese Nikkei continues to rise 0,2%. Australian stocks were helped by a weaker Aussie. Oil prices are slightly up from yesterday. US crude futures, NYMEX, trade at USD 95,41 a barrel. Brent crude is up 0,1% to 102,90. Wall Street ended flat yesterday after recent highs.
After rallying on Friday and Monday the USD took a pause and retracted 0.3% against the currency basket. Euro/USD trades at 1.3010 and USD/JPY stands at 1.0156. The slightly weaker dollar helped stabilizing commodity prices with gold gaining one percent to USD 1445 recouping losses from previous sessions. The stronger dollar is based on a recovery scenario for the US economy. A sluggish growth in emerging countries have kept commodity prices low.
The prospects for a firmer US recovery are likely to have a positive effect on the demand for commodities. There are also small signs of stability inside the struggling Euro zone. During yesterday’s bond auction Italian bonds fell to its lowest level since January. Investors backstopped by guarantees from the European Central Bank (ECB) and brushed off concerns about Italy’s political and economic troubles, pointing towards a normalization in financial markets.
After a two-day losing streak, Asian stocks again rose this morning. The Asian-Pacific MSCI-index is up 0,3% with Australian and South Korean stocks also climbing. The Japanese Nikkei continues to rise 0,2%. Australian stocks were helped by a weaker Aussie. Oil prices are slightly up from yesterday. US crude futures, NYMEX, trade at USD 95,41 a barrel. Brent crude is up 0,1% to 102,90. Wall Street ended flat yesterday after recent highs.
Disclaimer The analysis we provide is based on the average estimate of price movements in one day. Does not guarantee what we deliver is actually a proper and correct. Everything that happens in the decisions you make on your trading transaction is to be Your responsibilities.
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