Weak US dollar as the soft economic data

The US dollar losing gain in the market against the majors Upon the completion of the Federal Open Market Committee’s two-day April meeting, the Fed removed all calendar references on the timing of an interest rate hike.

The Federal Reserve on Wednesday pointed to weakness in the U.S. labor market and economy, in a sign that the central bank is struggling to proceed with its plans to raise interest rates this year.

The Fed’s policy statement puts it on track to begin a meeting-by-meeting approach toward deciding when to pull the trigger on its first rate hike since June 2006.

The central bank, however, acknowledged soft patches across the economy, making it more likely that it will not be ready to hike rates until at least September.

“The committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term,” the Fed said in its statement, following a two-day meeting of its policy-setting committee.

The Fed’s rate guidance mirrored what it gave last month.

But unlike its March policy statement, this time the central bank did not effectively rule out hiking rates at its next meeting.

While that makes a June move possible, the economic data is not cooperating.

The economy grew at an anemic 0.2 percent annual rate in the first quarter, the Commerce Department reported early on Wednesday, well below economists’ expectations for 1 percent growth and the fourth quarter’s 2.2 percent expansion.

The Fed acknowledged that economic growth “had slowed during the winter months, in part reflecting transitory factors.” In March, the Fed described growth as having moderated somewhat.

Oil climb to $58.50 per barrel

The crude oil reached $58.50 per barrel today, And it was close to the highest price from about 19 weeks after opening the day $56.88.

On the New York Mercantile Exchange, WTI crude for June delivery surged 3.31% to $59 a barrel in U.S. afternoon trading, before paring some of the gains after a rate statement by the Federal Reserve. Texas Light Sweet settled at 58.55, up 1.49 or 2.61%.

The Energy Information Administration (EIA) said on Wednesday in its weekly supply report that crude inventories increased by 1.9 million barrels for the week that ended April 24. The buildup was far below consensus estimates of a 3.3 million barrel increase.

The build pushed up current U.S. crude inventories to 490.9 million barrels, the most in at least 80 years. A week earlier, crude inventories surged by 5.3 million barrels for the week that ended April 17 — above forecasts of a 3.2 million build.

In addition, crude inventories at the Cushing Oil Hub in Oklahoma fell by 514,000 on the week, well below forecasts of a 400,000 gain. The decline marked the first draw at the largest crude storage facility in the U.S. since last November.

While record production over the last year has sent crude storage to near maximum storage capacity nationwide, output has leveled off in recent weeks. U.S. crude futures have remained above $50 throughout the month of April amid expectations that shale field production has peaked.

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Gold bounces off $1,180 today

The Gold price jump higher today after opening the day from $1179 per ounce to $1206 by the end of Monday,as precious metal traders awaited indications from the Federal Reserve on the timing of an interest rate hike later this week.

The troy ounce of the precious metal is advancing more than 2% at the beginning of the week, managing to regain the critical $1,200 mark.

The yellow metal has managed to gain more than $20 today, rebounding from session troughs just below the $1,180 level. Gold gained further traction as market participants started to factor in the likeliness of a dovish tone in the FOMC meeting on Wednesday.

In addition, the softer tone in the US dollar has been collaborating with the significant recovery in prices, pushing Gold near $1,210.

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The US Dollar hits the lowest within the week by Friday

The US Dollar fell to the lowest level within this week today after the negative data came after a recent string of downbeat U.S. economic reports prompted investors to push back expectations for a rate hike by the Federal Reserve.

Also,The dollar pared losses against a basket of other major currencies on Friday, after a U.S. durable goods orders report lent some support to the greenback, although ongoing uncertainty over the timing of a U.S. rate hike was likely to limit gains.

Official data showed that U.S. durable goods orders rose 4.0% in March, beating expectations for a 0.6% gain.after a 1.4% decline the previous month.

Core durable goods orders, which exclude transportation items, fell 0.2% last month, confounding expectations for a 0.3% rise. February’s figure wad revised to a 1.3% decline from a previously estimated 0.6% fall.

The data came after a recent string of downbeat U.S. economic reports prompted investors to push back expectations for a rate hike by the Federal Reserve.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% to 97.34.

The Natural Gas at the lowest level today

The natural gas future declined to the lowest level this week in thuresday and reachs $2.520 while it is trades at the moment at $2.545.

Also, Investing.com posted today that U.S. natural gas prices – on Wednesday, after data showed that U.S. gas inventories rose more than expected last week, sparking fears over a drop in demand for fuel.

On the New York Mercantile Exchange, natural gas for delivery in May hit $2.548 during U.S. morning hours, down 4.9 cents, or 1.86%.

A day earlier, natural gas prices jumped 3.1 cents, or 1.20%, to close at $2.606 amid speculation utilities and power generators will switch from coal to natural gas in wake of the recent slide in prices.

Futures were likely to find support at $2.491 per million British thermal units, the low from April 15, and resistance at $2.625, the high from April 15.

The U.S. Energy Information Administration said that natural gas inventories rose by 90 billion cubic feet in the week ending April 17, the most on record and exceeding expectations for an increase of 88 billion cubic feet.

Total U.S. natural gas storage stood at 1.629 trillion cubic feet last week.

U.S. natural gas prices have been under heavy selling pressure in recent weeks amid speculation the end of the winter heating season will bring warmer temperatures throughout the U.S. and cut into demand for the fuel.

Spring usually sees the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 49% of U.S. households use natural gas for heating, according to the Energy Department.

Easterbrook’s turnaround plan for McDonald

Steve Easterbrook, who just became CEO last month, Found a turnaround plan to save the setuation this time by lunching a test of all-day breakfast, and he will soon add premium burgers to the menu for a limited time.

That’s the key reason that McDonald’s stock was up more than 2% Wednesday afternoon, as CEO Steve Easterbrook — in office for only seven weeks — told analysts that change was urgent — and imminent.

“As a retail business we must be more customer-centric,” Easterbrook said.

Easterbrook refused to divulge on Wednesday any details of the turnaround plan. But he did note, “We’re challenging conventional thinking on multiple fronts.”

For McDonald’s, a turnaround couldn’t come soon enough. For nearly two years, the chain has seen its stock decline even as its same-store sales, particularly in the U.S. market, have been falling. The company has been playing catch-up to much of the fast-food industry, trying to improve the quality of its food and mend its tattered brand image.

Industry analysts say that change is way, overdue — particularly in the quality of McDonald’s menu offerings.

“McDonald’s needs products and marketing geared around health and wellness,” says Jack Russo, analyst at Edward Jones. “If you look at Chipotle and Panera, it’s all about organic and natural. McDonald’s can still be McDonald’s and do that.”

The world’s biggest fast-food company said it had a profit of 84 cents per share. Earnings were $1.10 per share, adjusted for non-recurring costs. That beat Wall Street expectations, which were $1.05 per share.

Meanwhile, revenue for the quarter was $5.96 billion — which fell short of Wall Street expectations, at $6.02 billion. The company also said that it will close 350 additional under-performing restaurants — primarily in the U.S., Japan and China. This is in addition to the 350 global restaurant closings originally planned for 2015, previously announced in January.

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The Gold Price Fell Under $1200

Monday the 20th of April, Gold price moves under $1200 while the US dollar has recovered some ground from last week’s sell off, but the precious metal still in the daily range.

On the Comex division of the New York Mercantile Exchange, gold futures fell more than $14 an ounce to 1,190.80 in U.S. morning trading, before slightly rebounding to settle at 1,194.30 – down 8.80 or 0.73%. Earlier, gold reached a daily-high of 1,209.00 as traders looked to lock into profits, as fears of a Greek default on its sovereign debt somewhat eased.

Speaking at a conference in Washington on Saturday involving the world’s top finance ministers, European Central Bank president Mario Draghi rejected speculation that Greece may be forced to abandon the euro. The comments came after reports surfaced last week that Greece could be exploring a contingency plan on how to proceed if it fails to receive critical aid from its euro zone creditors, which is deemed necessary for it to stave off bankruptcy.

In addition, officials in Athens on Monday reportedly issued a decree to local governments forcing them to transfer all cash balances to the Greek Central Bank, in advance of a EUR 770 million obligation due to the International Monetary Fund in May. The effort could raise about EUR 2 billion, according to multiple reports.

The U.S. Dollar Index, which measures the strength of the greenback versus of a basket of six major currencies, rose 0.39 or 0.40% in U.S. morning trading to 98.01, before rising slightly hours later to 98.12. Last week, the index fell more than 1.5% for the week, reaching its lowest level since April 5.

Gold becomes more expensive for foreign purchasers when the dollar appreciates.

The index dipped to 97.38 last Friday, hours after Chinese futures fell 5% as regulators increased the volume of shares available to short sellers by clamping down on margin trading involving over-the-counter stocks. Over the weekend, the People’s Bank of China attempted to place a floor on the sell-off by lowering its reserve requirement ratio (RRR) for banks by 1% from 19.5 to 18.5%. The stimulus measure could release approximately one trillion yuan or $160 billion in liquidity, according to analysts.

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Positive data from the National Statistics in UK

News came from the Office of National Statistics in UK that unemployment has fallen to its lowest rate since July 2008.

That means the unemployment rate has fallen to 5.6%, in line with forecasts.

Average weekly earnings in the three months to February, excluding bonuses, rose by 1.8% compared with the same period a year earlier.

Growth was slightly lower than the rate in January. When bonuses are included, weekly earnings rose by 1.7%.

The number of people claiming Jobseeker’s Allowance in March fell by 20,700 to 772,400, the ONS said.

Martin Beck, senior economic advisor to the EY ITEM Club, said: “The story of the UK labour market has long been a ‘jobs-rich’ but ‘pay-poor’ one. The latest numbers are no exception with good news for those looking for work, but less so for those already in employment.”

Samuel Tombs, senior UK economist at Capital Economics, said the UK’s “employment miracle shows no signs of drawing to a close” and expected the jobless rate to continue falling further in the coming months.

That means we will see more support to the GBP against the majors in the future i guess, let us wait and see how that news will effect in the global market.

Weekly progress in the Oil price

Crude prices have been slowing gaining into the weekly inventory reports on hopes the big gains in oil stocks could be easing. And currently trade at $56.03 after reaching high at $56.67 today.

Oil-Barrel

On the New York Mercantile Exchange, crude oil for May delivery rallied $1.68, or 3.15%, to trade at $54.97 a barrel during U.S. morning hours, the highest level since January 2. Prices were at around $54.06 prior to the release of the inventory data.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 1.3 million barrels in the week ended April 10, below expectations for an increase of 4.1 million barrels.

Total U.S. crude oil inventories stood at 483.7 million barrels as of last week, the most in at least 80 years, underling concerns over a supply glut.

The report also showed that total motor gasoline inventories decreased by 2.1 million barrels, compared to expectations for a drop of 0.2 million, while distillate stockpiles rose by 2.0 million barrels.

A day earlier, Nymex oil jumped $1.38, or 2.66%, to close at $53.29 amid speculation an ongoing collapse in rigs drilling for oil in the U.S. will result in lower production.

U.S. oil futures have been well-supported in recent sessions amid mounting expectations that U.S. shale oil production has peaked and may start falling in the coming months.