Gold held steady on Tuesday as investors swooped in after the metal fell to near five-week lows, while markets wait to see how United States nonfarm payroll data due later this week will play into the timing of any rate hike.
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Let’s say that the majority of rhetoric at Jackson Hole was net USD Bullish, the Oil market will need to see growing demand in real statistics that was expected by the International Energy Agency if there are any anticipations for a sustained move to and through $50/bbl. The dollar extended Friday’s gains and reached a roughly three-week high against the yen of 102.39 yen.
Today has a somewhat heavier economic calendar, with inflation and unemployment data from the euro area and USA reports on private sector employment, pending home sales and Chicago-area business activity slated for release later in the session.
“A December hike remains very likely, although a bumper payrolls on Friday would make September more live”, said Peter Jolly, the global head of markets research at National Australia Bank Ltd.in Sydney.
Investors will turn their focus to a slew of USA data this week before the all-important jobs report on Friday.
However, Fischer used an interview on Bloomberg Television to insist that negative rates will not take root in US, insisting that the Fed was not “planning to do anything in that direction”. The S&P 500 was down 4.35 points, or 0.2%, at 2,176.03.
“The RBNZ will be happy that Fischer’s comments knocked more than a cent off its value, but there is still much to be liked about the currency amidst a strong recovery in dairy prices and, on the RBNZ’s own estimates, expectations for tightening capacity pressures”, said Jason Wong, currency strategist at bank of New Zealand, in a note. Germany’s DAX was 0.7 percent lower, while the blue-chip Euro Stoxx 50 was down 0.4 percent.
That’s what would likely be needed to engineer a recovery if the US economy were to fall into a recession in the next couple of years, Marvin Goodfriend, who was an economist and policy advisor at the Federal Reserve’s Bank of Richmond from 1993-2005, told CNBC’s “Squawk Box” on Thursday.
The Fed laid a little more groundwork this week, when Fed Vice Chairman Stanley Fischer told Bloomberg TV (as reported by Reuters) that the country’s job market is “nearly at full strength” and said that the Fed’s decision to raise interest rates will depend on the performance of the economy. London was closed for a holiday. US 30-year Treasury bond yields also fell, with their prices rising more than a full point.
Advancing issues outnumbered decliners on the NYSE by 1,541 to 1,114.
US Treasury yields were little changed as traders awaited the US jobs data.
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Spot gold was down 0.3 percent at $1,319.47 an ounce at 0931 GMT, while USA gold futures for December delivery were down $4.50 an ounce at $1,322.50.
