Back
30 Sep 2013
Commodities tumble amidst a US debt default
FXstreet.com (Athens) – Despite the fact that the American dollar is losing heavy ground against the safe-haven currencies (Swiss franc and Japanese Jen as well), commodities are heading south dented by the prospect of a U.S. government shutdown.
The greenback dropped across the board on Friday, hitting a 7-1/2-month trough against the safe-haven Swiss franc, dented by the prospect of a U.S. government shutdown the week ahead and a lack of clarity over when the Federal Reserve will scale back stimulus. What’s more, the dollar index was last down 0.3 percent to 80.284. On the week the index dropped about 0.2 percent, its third straight weekly loss. For September it is down around 2.2 percent. The dollar fell to 0.9018 Swiss francs, its lowest since early February, with the franc also boosted by solid Swiss sentiment data. It was last down 0.5 percent at 0.9058. At the time of writing, the single currency is getting pummeled out of the gate. To be more précised, currently, the EUR/JPY is down 100 pips while EUR/USD is dropping fast (down almost 50 pips).
Oil falls on Monday as tensions eased between the United States and Iran, culminating in the first phone call between the two countries' presidents since 1979 and a pledge to work swiftly toward an agreement on Iran's nuclear program. On Friday, Brent crude oil for November slipped 58 cents to settle at $108.63, and extended losses to almost $1 a barrel in post-settlement trading following Obama's comments on Iran. Furthermore the U.S. crude for delivery in November also fell in choppy trading, finishing the session down 16 cents to reach $102.87. In addition to the above, the U.S. benchmark hit a session low of $102.36. At the time of writing, the increased supply from Libya plus thawing in US-Iran relations are weighing on both Brent and WTI, threatening multi-week lows. At the time of writing, the crude oil is down 1.3%.
As far as regarding the gold, is trading flat as US Dollar searches for direction amid risk aversion. On Friday however, gold prices ended up about 1.0 percent on Friday, driven up by a possible shutdown of U.S. government operations next week and the threat of a debt default in mid-October, as well as by the prospects for continued easy monetary policy from the Federal Reserve. U.S. gold futures were sent to their session high of $1,345.20 an ounce, up 1.6 percent, after breaking through its 100-day moving average at $1,341 an ounce, a level it slid below last Friday when prices crashed 2.9 percent.
The greenback dropped across the board on Friday, hitting a 7-1/2-month trough against the safe-haven Swiss franc, dented by the prospect of a U.S. government shutdown the week ahead and a lack of clarity over when the Federal Reserve will scale back stimulus. What’s more, the dollar index was last down 0.3 percent to 80.284. On the week the index dropped about 0.2 percent, its third straight weekly loss. For September it is down around 2.2 percent. The dollar fell to 0.9018 Swiss francs, its lowest since early February, with the franc also boosted by solid Swiss sentiment data. It was last down 0.5 percent at 0.9058. At the time of writing, the single currency is getting pummeled out of the gate. To be more précised, currently, the EUR/JPY is down 100 pips while EUR/USD is dropping fast (down almost 50 pips).
Oil falls on Monday as tensions eased between the United States and Iran, culminating in the first phone call between the two countries' presidents since 1979 and a pledge to work swiftly toward an agreement on Iran's nuclear program. On Friday, Brent crude oil for November slipped 58 cents to settle at $108.63, and extended losses to almost $1 a barrel in post-settlement trading following Obama's comments on Iran. Furthermore the U.S. crude for delivery in November also fell in choppy trading, finishing the session down 16 cents to reach $102.87. In addition to the above, the U.S. benchmark hit a session low of $102.36. At the time of writing, the increased supply from Libya plus thawing in US-Iran relations are weighing on both Brent and WTI, threatening multi-week lows. At the time of writing, the crude oil is down 1.3%.
As far as regarding the gold, is trading flat as US Dollar searches for direction amid risk aversion. On Friday however, gold prices ended up about 1.0 percent on Friday, driven up by a possible shutdown of U.S. government operations next week and the threat of a debt default in mid-October, as well as by the prospects for continued easy monetary policy from the Federal Reserve. U.S. gold futures were sent to their session high of $1,345.20 an ounce, up 1.6 percent, after breaking through its 100-day moving average at $1,341 an ounce, a level it slid below last Friday when prices crashed 2.9 percent.