Global commodity markets endured a sell off yesterday as traders continued to flee the Euro and bought up the relative safe haven that is the US Dollar. The USD is now at an 8 month high against the Euro, which puts downside pressure on gold given the inverse relationship it has with the currency. Investors will now be looking to see if the leg down continues to the $1,000 level, or is this a dip that should be bought in to? Focus now turns to the release of the non farms later on in the session.
- Barclays Capital economists warned that the Greek issue could spread to create a Lehman-style tsunami spreading across much of the EU
- Yesterdays initial jobless claims in the US came in a lot lower than expected, with claims rising by 8,000 to 480,000, way above analysts' expectations, who forecast a fall of 10,000
- Both the UK and the ECB left rates unchanged at 0.5% and 1% respectively
- Following 11 months of support, the Bank of England announced that they would be pausing their quantative easing programme
- Please note that the non-farm payroll figures are scheduled for release at 1330 this afternoon
Major Economic News
NON FARM PAYROLL FIGURES