INTERNATIONAL COMMODITY NEWS :
- Oil edged higher to $42 a barrel on Wednesday after hitting its lowest since April the previous day, supported by an industry report showing a fall in U.S. inventories and a weaker dollar.But prices could struggle to make much headway, analysts said, as sentiment remains bearish. A supply glut that has weighed on prices could increase if oil exports actually restart from ports in Libya that have been closed since 2014.
- Gold prices held steady below a two-year high in European trade on Wednesday, as investors looked ahead to key U.S.data later in the session to gauge the health of the world’s largest economy and whether it is strong enough to warrant an interest rate hike later this year.The U.S. is due to release the ADP jobs report for July at 12:15GMT, or 8:15AM ET, with market analysts expecting a gain of 170,000 private sector payrolls.
- Nickel futures rose during evening trade in the domestic market on Wednesday as investors and speculators booked fresh positions in the industrial metal amid a pickup in physical demand for nickel from alloy-makers in the spot market. A pickup in the 19-member Euro Area economy also bolstered the demand outlook for the metal as a combined gauge measuring manufacturing and services in the Euro area climbed to 53.2 in July from 53.1 in June with a reading above 50 signaling expansion.
ECONOMY NEWS :
- Bank of Japan Deputy Governor Kikuo Iwata said on Thursday that a comprehensive review of the central bank’s monetary policy due next month would focus on the transmission mechanism and obstacles to its monetary policy. The review is not meant to transmit a specific direction for future monetary policy, Iwata said, according to the text of a speech.
- A constitutional amendment proposed by interim President Michel Temer to put a ceiling on Brazil’s public spending will pass the lower house this year but not the Senate until 2017, lower chamber Speaker Rodrigo Maia said on Wednesday. The proposed cap is the cornerstone of Temer’s strategy to plug a bulging deficit inherited from the Workers Party government of suspended President Dilma Rousseff, yet its impact on fiscal accounts will be delayed until it wins Senate approval next year.
- The Bank of England is poised to cut interest rates for the first time since 2009 later on Thursday, as Britain’s economy teeters on the brink of recession after June’s vote to leave the European Union.Although the BoE wrong-footed financial experts three weeks ago by leaving rates unchanged, the central bank said most of its policymakers were likely to support action in August as post-referendum uncertainty depressed the economy.
TRADING STRATEGY :
- BUY GOLD ABOVE 1365 TARGET 1370 1376 SL BELOW 1360
- SELL GOLD BELOW 1361 TARGET 1356 1350 SL ABOVE 1366