SHANGHAI, Aug. 14 (SMM) – Depreciation of the yuan is expected to slow. Major economic indicators from the US were upbeat, bolstering the US dollar. However, market uncertainty when the Fed will interest rate allowed the US dollar to erase early gains. NYMEX crude oil prices plummeted 3% to hit a 6.5-year low, also weighing on base metals.
PBOC president assistance Zhang Xiaohui said the RMB will remain a strong currency in the long run, and China will insist on steady monetary policy, and the RMB will return to upward track. This allowed RMB to stabilize and close at 6.3980.
US commercial inventories in June were up 0.8%, their largest growth since January 2013. Retail sales in July rose 0.6%, topping market expectations. This is expected to boost Q2 growth. Import Price Index in July fell 0.9%, pointing toward a low inflation rate. NYMEX crude oil prices fell to the lowest for the year. The number of initial jobless claims for the week ending August 8 was 274,000, compared to the 270,000 expected. The average number over the last four weeks decreased to the lowest since April 2000.
European Central Bank emphasized they will continue to implement QE now that economic recovery slowed, weighing down the euro. However, Greek economy growth in Q2 unexpectedly increased 0.8%, with the annualized growth of 1.5%.
Spot gold prices fell 1%. NYMEX crude oil prices fell to a 6.5 year low. LME base metals prices diverged.