Reluctance in spending

April 18, 2016 10:17 AM

Currencies

The U.S. dollar index lost ground on Friday closing at 94.695, down 21.5 points against gains in the Euro, 16.5 points to $1.1302, the Japanese yen 48 points to 0.09213c, the British Pound 47 points to $1.4201, the Canadian dollar 11 ticks to 77.92c, and the Australian dollar 16 points to 76.99c. Only the Swiss Franc lost against the dollar by closing down 12 ticks t $1.0355. Once again we are on the sidelines awaiting further data from the EuroZone and other of the U.S. trading partners.


Energies

Crude oil closed lower on Friday after its recent gains in expectation of the results of Sunday’s meeting of oil producers in Doha, Qatar. Oil closed at $40.35 per barrel, down $1.15. We are also awaiting the results of that meeting before trying to assess further price action in crude.


Precious metals

June gold closed at $1,234.60 per ounce, up $8.10 but for the week lost 0.8%. Silver closed at $16.31 per ounce, up 14c and for the week was up 6%. Once again gold and silver mirrored the action in the dollar to a great extent since they are dollar denominated. May copper lost 1.8c per pound to close at $2.153. July platinum lost $3 per ounce to close at $989.90 but June palladium gained 47.35 per ounce to close at $568.25.

For the week palladium gained 5.4%. We remain sidelined in precious metals since the performance is not reflective of the global recessionary trend as well as geopolitical events such as the Russian jet buzzing a U.S. warship with no real reaction by the U.S. The Russians appear to be "testing" the U.S. Administration and one wonders if the same would occur if we had a "different" President.

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About the Author

John has over 40 years experience at major U.S. Brokerage firms as Manager and Director of various International Divisions and is the founder of his own trading and brokerage firms. Over the years John has gained a wealth of knowledge and experience in all aspects of investments and trading. He was also a floor trader at the Commodity Exchange in New York. He formed Acuvest in 1999 and can be reached at futures@acuvest.com.