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(Wallace Refiners) – Gold and silver both trade 0.09% higher overnight leading into the European open in a pretty lacklustre Asian session. The risk sentiment was mixed after a weak handover from Wall Street. The Nikkei 225 fell 1.10% while the ASX (0.51%) and Shanghai Composite (0.22%) gained.
In terms of news, Bank of Japan’s Governor Kuroda says the central bank will not be ending easy monetary policy any time soon. This is obviously positive for gold but we need to see if the Fed has the same intentions. Sticking with central banks the RBNZ says they are investigating a potential leak prior to the November monetary policy statement. Leaks are nothing new but it is important that everyone respects the media embargo period before the central bank has a chance to release the data themselves. There were some comments from Fed Chair Powell who said now is not the right time to put away the emergency Fed measures. US fiscal stimulus talks are also set to start again as House Speaker Pelosi and Senate minority leader Schumer sent Senate leader McConnell a letter calling on him to kickstart talks.
On the Brexit front, there are reports that the UK and France may have reached a deal on fishing rights. This was one of the biggest stumbling blocks in the talks and now a deal could be reached as soon as next week.
In the FX space, the greenback has struggled overnight with the likes of NZD, JPY and GBP capitalising. The most interesting move came in the crypto space as BTC/USD rocketed toward 18K but then met some resistance. The digital currency has settled at 17,944 this morning. In the commodities complex, lumber (5.78%) continues to perform well and zinc (1.95%), copper (1.18%), lead (0.54%) and tin (0.30%) are all trading higher off the back of a weaker dollar.
Looking ahead to today’s session highlights include UK CPI, EU CPI, Canadian CPI, US building permits, DoE crude oil inventories. There are also comments from FOMC Member Bullard, Williams, Evans, ECB President Lagarde, BoC Gov Council Member Wilkins, BoE MPC Member Haldane and ECB’s Enria.
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