SHANGHAI, Sept. 22 (SMM) – The US dollar fell at one point as longs closed positions after the Fed left interest rate unchanged. However, European Central Bank Executive Board’s Benoit Coeure implied Europe will amplify quantitative easing. When combined with strong US economic indictors, the US dollar gained ground again.
Three Fed officials supported an interest rate hike later this year, supporting the US dollar. However, pending home sales in August fell for the first time in four months, which may be a result of rising home prices. Barclays Capital’s economist lowered his forecast of US GDP, raising market uncertainty over US economic recovery.
Germany’s August PPI fell more sharply on both monthly and yearly basis. This, coupled with the likelihood that the ECB may prolong its quantitative easing plan to September next year, pushed down the EUR:USD to 1.12.
China Customs data show Iraq has surpassed Russia to become China’s largest crude oil supplier. Crude oil supplies from Oman outstripped those from Iran. As China remains a large consumer of oil, crude oil prices closed at USD 46.72/bbl. Chinese President Xi Jinping will visit the US soon boosted market confidence toward stocks markets.
Precious metals prices closed with declines. Brazilian Real slumped. LME base metals prices diverged.
