Currencies

After five days of loss, the U.S. dollar finally rallied against its trading partners, with particular attention paid to the Japanese yen. Japanese officials suggested a government intervention could lead to a selling of the yen against the dollar. Our estimate of a European economic contraction exacerbated by the influx of immigrants keeps us on the side of the dollar, but caution prevails.

Energies

Crude oil closed at $39.72 per barrel on Friday, up $2.46 or 6.6%. June Brent crude on the London ICE Futures exchange was up $2.51 or 6.4% to close at $41.94 per barrel. A report by Baker Hughes indicating the number of oil rigs declined for a third straight week to 354 from 362 also a factor in the rally in crude. However, our estimate of oversupply and slack demand keeps us on the sidelines for now.

Precious metals

June gold closed at $1,243.80 per ounce on Friday up $6.30 and for the week gained 1.7%. May silver followed suit gaining 22.6c or 1.5% to close at $15.384 per ounce. For the week silver gained 2%.. Concern over global economic conditions prompted the move to precious metals. Disappointing quarterly corporate results also a factor. May copper closed at $2.0870, up 1.5c but for the week lost 3.5%. July platinum closed at $968.40 per ounce, up $13.70 and was up 1.3% for the week. June palladium closed at $538.65 per ounce, up $4.85 but for the week lost almost 4%. We remain sidelined in precious metals.