The Federal Reserve left the key interest rate unchanged. The major news is that the FRS is about to start another round of quantitative easing this month. The program is estimated by $40bn per month starting from September. The program will take effect until the US labor market shows signs of stable recovery. The FRS is also planning to maintain low interest rates till mid 2015. Ben Bernanke says the rate of inflation presents no threat at this point.
Yesterday’s US jobless claims report showed an increase versus last month’s figures. Today, most analysts expect the retail sales to grow.
Mario Draghi, ECB president, the ECB’s intension to purchase risky eurozone bonds starts giving results. The Spanish bond yield has already dropped by 30%.
The Japanese authorities are expected to announce their decision to completely abandon nuclear energy b y2030. This decision will put more pressure on the Japanese economy and budget as the country will have to find for alternative energy sources.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1785-1790. A failure to consolidate above 1780 may trigger a bearish move down to 1770-1775, while a break below 1770 will give way to 1760, 1750.
Silver is expected to test 35.0. A break above 35.0 will trigger a rally up to 35.25, 35.50, 35.75. A failure to stay above 35.0 will give way to 34.75, 34.50, maybe 34.0.
