E.C.B. Holds Rates, Sends Gold, Commodities Higher
The E.C.B.’s latest policy meeting ended with the central bank not bowing to pressure from choking banks to lower interest rates and held the benchmark lending rate at 0.75% for the time being.Â This lifted the cloud that had been hanging over the Euro for the past few weeks while capital in the major U.S. bond and equities markets digested the new tax laws as well as the change of the calendar year.Â The Euro rallied back near the highs made in December near $1.33 and sets up a bullish end of the week and a chance to move towards $1.35 next week
This move up in the Euro was, for the first time since November, coupled with a move up in gold as well, as traders now believe the E.C.B. is going to print slower than the U.S. and that raises inflation expectations and hence Gold. Gold rallied all the way to $1680 before running into selling pressure.Â Gold took silver, copper and Brent Crude along with it but none of these commodities were able to break through clear chart resistance and will likely now not do so without a push from the Euro through $1.33.
Tomorrow sets up a weekly close that could be very bullish for next week in the precious metals and inflation sensitive commodities.Â Watch for a close above $3.725 in Copper, $113 in Brent Crude and $31.55 in Silver.Â If Gold were to manage a close above $1701 tomorrow that would be very bullish for the rest of the month heading into February.
Currency Articles - Dec 2, 2015 11:35 - 0 Comments
More In Currency Articles
- GBP Rate Higher As Retail Sales Outperform Then Loses Ground
- Unemployment Level Suggests UK Is Ready For Rate Hike But Speculation Still Says No
Gold and Oil News - Jan 12, 2017 12:05 - 0 Comments
More In Gold and Oil News
- Oil Prices: How Much Further Will They Let This Slide?
- Gold Prices and Where Next At This Resistance?
Shares and Markets - Feb 20, 2017 16:03 - 0 Comments
More In Shares and Markets
- Can The FTSE Head Higher? BP, Fresnillo, and Bank Index Could Help Decide
- FTSE 100 and Dow Jones: Can They Head Higher This Year?