Dollar firms on expectations for December.
Advertisement
30-year government bond yields jump * Weak rand may prompt platinum ETF liquidation -Commerzbank * Platinum, palladium at July lows (Recasts first paragraph, updates prices, adds comment, second byline, NEW YORK dateline) By Marcy Nicholson and Eric Onstad NEW YORK/LONDON, Sept 13 (Reuters) – Gold fell for the fifth straight day on Tuesday, weighed down by a firmer dollar and a jump in Treasury yields as well as uncertainty about whether the us central bank will raise interest rates next week.
A so-so number of jobs added in August (151,000) released in early September caused many analysts to pull back their predictions that the Fed would raise rates at the next policymaking meeting on September 21.
Oil prices edged up as short-covering stemmed a two-day rout, but a stronger dollar stemmed gains.
Low interest rates have been a part of USA monetary policy since the Great Recession eight years ago. Today’s United Kingdom inflation data is likely to provide some price action on the pound with August CPI expected to reach its highest level since December 2014 at 0.7%. The decline in crude was sparked by a report from the International Energy Administration that said that the global oil glut would persist into 2017.
However, another trigger for the turmoil of the last few days was disappointment that the European Central Bank did not signal an extension of its bond-buying stimulus program at its meeting last Thursday.
In December 2015, the Fed raised rates for the first time in almost a decade, bringing the range for the federal funds rate to between 0.25 per cent and 0.50 per cent from a range of 0 per cent to 0.25 per cent previously. Toward 1800 GMT, while the S&P 500 was up 0.9 percent.
“We’re right now in a Goldilocks economy”.
In the event, she instead warned against the Fed removing support for the economy too quickly, knocking the greenback half a cent lower.
With expectations for a rate rise reduced slightly the dollar dipped against its peers, easing to 101.61 yen from 101.85 yen in NY, while the Australian dollar jumped 0.7 percent and the South Korean won added 0.2 percent.
Over the a year ago, Brainard has been one of the Fed’s most vocal defenders of low interest rate policy, arguing the United States is vulnerable to economic troubles in Asia and Europe.
CURRENCIES: The dollar rose to 102.99 yen from 101.98 yen late Tuesday in Asia. Anadarko stock sank 45 cents to $57.34 and Freeport-McMoRan fell $1.02, or 9.2 percent, to $10.06.
The Bank of Japan and U.S. Federal Reserve both meet next week.
Advertisement
While Tokyo and Hong Kong saw mild recoveries from Monday’s sharp sell-off there are growing concerns about the future for central bank policy easing after years of cheap cash.
