Showing posts from January, 2015

If Oil Has Found The Bottom Than The Dollar Has Peaked - Or Something Like That...

He we go...

Metals Update - Heraeus Metals Germany GmbH & Co. -


Gold started positively into the new year and has recorded a price increase by approx. 7.5% since the start of the year. The metal benefitted from the falling oil prices firstly as well as from the fears of a weaker global economy. Gold became more attractive again as a safe haven asset in this environment. The unexpected announcement of the Swiss National Bank to cancel the minimum Euro exchange rate led to a price increase by 2.5 % on Thursday and a weekly gain of 4.5%. Worried investors escaped from volatile investment classes into Gold: Thus, the SPDR Gold Trust which is the biggest Gold ETF had an inflow of 1.4 % on Thursday and of 1.9 % on Friday - this was the biggest daily percentage increase in almost 5 years. There is increased physical demand from Switzerland which is not surprising after the revaluation of the Swiss Franc: Gold dropped in local currency from 1,250 CHF/oz to approx. 1,050 CHF/oz temporarily. In Asia in turn buyers are hesitant due to the increased price…

Swiss Businesses Fear Impact of Central Bank's Franc Move

10:19, 15 Jan 2015 (Thu)
By John Revill

ZURICH--Swiss businesses are bracing themselves for negative effects from the scrapping of the Swiss central bank's cap for the franc-euro, a move that could sharply reduce the value of sales to their key European markets. The blue chip Swiss Market Index plunged 9.6% in lunchtime trading, and billions of Swiss francs were wiped from the value of companies such as cement maker Holcim AG and pharma giant Novartis AG, after the Swiss National Bank said it would eliminate a long-observed cap of 1.20 francs per euro. Representatives from Novartis declined to comment, while Holcim said the drop reflected the general development of the Swiss market. The SNB's decision, which caused the franc to surge in value to about 1.03 per euro from around 1.20, was particularly critical for companies which rely on sales to the 19 countries in the eurozone--Switzerland's biggest export market and buyer of more than half of the Alpine country's pro…

Dembik: QE is coming and the euro will slide

EURUSD is trading at historic lows – the lowest in almost a decade – after breaking the psychological level of 1.20. This may be only the starting point of a deeper and more prolonged depreciation of the euro towards 1.15. The two key elements behind the drop are the resurgence of the sovereign debt crisis and expectations that the European Central Bank will launch a policy easing program to avoid Japanese-style deflation in the euro area.
Once again, the ECB will have no choice other than to take the lead in order to reassure investors. This means implementing a sovereign bonds purchasing programme despite German reluctance. It may not be the best option to strengthen growth and reinforce inflation but it is the only option left.
The ECB may launch this programme as soon as January 22. Over the past few weeks, pressure has increased on the central bank after the publication of data confirming the increasing risk of deflation in the Eurozone. For the first time since 2009, year-on-yea…

Jan. 5th Japan - US CRUDE at lowest level in five years

TOKYO, Jan 5 (Reuters) - U.S. crude futures extended 
declines to a third day on Monday to stay near their lowest 
level in more than five years, hurt by a slew of weak economic 
data in the worlds biggest oil consumer. 

* NYMEX crude for February delivery CLc1 was down 39 cents 
at $52.30 a barrel by 2340 GMT, after settling down 58 cents at 
on Friday. The contract fell as low as $52.03 on Friday, the 
lowest since May 2009. 
* London Brent crude for February delivery LCOc1 was down 
52 cents at $55.90 a barrel, after settling down 91 cents. 
* In a sign of tepid economic conditions, U.S. construction 
spending unexpectedly fell 0.3 percent in November, while the 
pace of growth in the U.S. manufacturing sector slipped to a 
six-month low in December, according to the Institute for Supply 
Management. ID:nL1N0UH0OD 
* Oil prices have been choppy due to thin trading volume at 
the start of the new year, analysts said. A big slide in oil 
prices has accelerated after OPEC declined to rest…


Weekly Natural Gas Storage Report