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Forex outlook:
The dollar rose a fourth straight day against the Euro on speculation that inflationary pressures might be back on record gasoline prices that also inflect retail-sales in addition the U.S. economy seems to be strong enough not to warrant a cut in interest rates this year. ``Investors have figured out the Fed won't change the rates for many months to come,'' said Tim Mazanec, senior currency strategist in Boston at Investors Bank & Trust Co. ``The dollar will probably gain another 1 percent against the euro this week.''The dollar climbed 0.13 percent to $1.3355 per euro at 2:46 p.m. in New York. The yield of the 10-year Treasury note rose 3 basis points, to 5.14 percent today, touching 5.25 percent on June 8 gaining support from the optimistic forecast on the economy.
The yen advanced today against the majors after a government report showed a strong growth of 3.3% for the first quarter. It traded at 121.79 against the dollar, compared with 122.14 on June 1, the lowest since Jan. 29. The Japanese currency traded at 162.65 against the euro, compared with the all-time low of 164.61 per euro on June 5. ``I don't think'' other central banks will ``intervene in the market,'' said Matthew Strauss, a senior currency strategist at RBC Capital Markets Inc. in Toronto, a unit of Canada's biggest bank by assets. ``We haven't heard any comments suggesting they will do so.''
Gold: Rose from a 12-week low in New York on speculation that last week's slump was overdone because rising equity markets and higher energy costs will boost the metal's appeal as a hedge against inflation.Gold's 3.9 percent decline last week was the biggest in three months, as the threat of higher interest rates led some investors to sell the metal to cover losses in the equity markets. U.S. stocks rebounded on June 8 after floor trading in gold ended, and both U.S. and European stocks rose today. ``The rally in the equities and the metal stocks -- that helped gold itself to do better,'' said Marty McNeill, a trader at R.F. Lafferty & Co. in New York. ``Oil does have a positive influence on it.'' Gold futures for August delivery rose $8.70, or 1.3 percent, to $659 an ounce on the Comex division of the New York Mercantile Exchange. The slump in the gold prices was also due to the rising interest rate in E.Z and N.Z which dims the appeal of the precious metal.
Crude Oil: Rose today after Saudi Arabia, the world's biggest exporter, told Asian refiners that it would curb shipments for a ninth month in July. ``Although we may see some additional selling, I do believe the worst of the sell-off is behind us.''The price of the black gold also got support on speculation OPEC wont increase supplys. The crude oil traded around the 65.850$ a barrel on 19:47 GMT.
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