INTERNATIONAL COMMODITY NEWS :
- Oil prices struggled for direction in choppy trade during European morning hours on Wednesday, as market players looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
- Gold futures were lower in European trade on Wednesday, as the dollar strengthened against the euro amid expectations the European Central Bank will almost certainly ease monetary policy this week. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.2% to 97.36 during European morning hours, bouncing off the prior session’s more than two-week low of 96.88.
- Natural Gas futures retreated in the domestic market on Tuesday as investors and speculators exited positions in the energy commodity as forecasts for warmer weather across the US in the coming days threatened to curtail the demand for the heating fuel.
ECONOMY NEWS :
- The German economy will grow at a slightly slower pace this year and next compared to 2015, the German banking association (BdB) said on Wednesday, citing a slowdown in China and other emerging markets as well as low oil prices as risk factors.The BdB said it expects Europe’s largest economy to grow by 1.6 percent this year and 1.5 percent in 2017, down from 1.7 percent last year.
- The Bank of Japan is set to hold off cutting interest rates at next week’s rate review, sources say, as it scrambles to soothe market jitters caused by January’s surprise decision to adopt negative interest rates.Markets are rife with speculation the BOJ will expand monetary stimulus in coming months to reflate a stagnant economy, after January’s move failed to boost stock prices or arrest an unwelcome rise in the yen.
- Assets of China’s sovereign wealth fund are not included in the country’s foreign exchange reserves and do not impact China’s reserves, China’s FX regulator said on Wednesday.China has ample FX reserves, the State Administration of Foreign Exchange said on its official microblog.
TRADING STRATEGY :
- BUY GOLD APR ABOVE 1263 TARGET 1268 1274 SL 1258
- SELL GOLD APR BELOW 1254 TARGET 1249 1243 SL 1259