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Market Review June 23, 2014

June 23, 2014

The second week in a row Gold has been closing with quite confident growth. The demand on the precious metal last week was forming because of 2 main factors: geopolitical tensions in the Middle East and the decision of the FRS not to raise rates on the federal funds right after the end of QE3. The Fed had surprised the market, what has cheered up the bulls to open long positions. Gold rates growth on June 19th suggests closing of a lot of stop orders of short term speculators. As a result Gold ended trading with 2.97% increase at 1314.40.

Platinum also ended last week with ascent, but growth was more moderate. After correction against the background of the end of platinum miners’ strike in SA, we again saw demand on industrial metals. Investors understand that full load of production powers in South Africa will occur in a few months. So market will experience a deficit of supply against the background of strong demand on auto production in the United States, UK, and Japan. As a result the week ended at 1456.43.

American stock market has started appreciating again after a little break. S&P500 futures set a fresh historical maximum at 1964.4 last week.

Though eventually the trading week on the futures ended with a fall 
by 1.41% at 1962.6.
 
 
Investors were buying any downfall of the rates, what moved prices on American corporate stocks up.

On Wednesday on June 18 the FOMC head Janet Yellen mentioned that interest rates would be left on low levels for quite some time. It is a positive factor for stock exchanges. It is worth distinguishing Caterpillar (САТ), which looked much better than market, adding 2.8%.

 TECHNICAL ANALYSIS

EURUSD

The Euro is up. It has retraced from the level at 1.3642. Now it is approaching the aforementioned resistance. If it is broken, the upward trend is likely to continue.

USDJPY

The pair is ranged. The fluctuations are quite strong. At the moment the trend is not quite clear. In the long run it most likely fits within the patterns of consolidation. So downward trend is possible after a while. 

GBPUSD

The Pound is doing well without any surprise. It is now above 1.7000. Even though there was some correction of an upward trend, it looks like the asset is back on track and is starting to appreciate again.
 

ECONOMIC CALENDAR
Monday, June 23
01:45  CNY Chinese HSBC Manufacturing PMI    
07:30  EUR German Manufacturing PMI    
14:00  USD Existing Home Sales
Tuesday, June 24
08:00  EUR German Ifo Business Climate Index  
08:30  GBP BoE Gov Carney Speaks    
14:00  USD CB Consumer Confidence
14:00  USD New Home Sales
Wednesday, June 25
12:30  USD Core Durable Goods Orders (MoM)  
12:30  USD GDP (QoQ)  
Thursday, June 26
09:30  GBP BoE Gov Carney Speaks   Friday, June 27
08:30  GBP GDP (QoQ)  
08:30  GBP GDP (YoY)