the numbers of the United States looked sharp on Thursday. Inflation showed some strength, as PPI rose 0.5 percent, ahead of the estimated 0.3 percent. This marked the highest monthly increase since May 2015. Core PPI did the same with a gain of 0.4 percent, exceeding the forecast of 0.1 percent. Regarding employment, jobless claims remained at 254 thousand, below the estimate of 263,000. It is inflation in the US move? Let's take a look at the CPI numbers on Friday, and a solid release could boost the US dollar.
The drama continues in Britain in the financial and political scenarios. Markets had widely expected a quarter point cut by the Bank of England, which would have marked the first rate cut from the Bank of England since July 2009. Mark Carney had hinted in motion when he recently said that economic conditions had deteriorated and the Bank of England would have to lower low in the summer, but Carney has evidently decided to wait. Gold prices are closely linked to interest rates, and the metal lost ground when the expected rate cut failed to materialize. Financial markets are expecting the Bank of England to cushion the economic slowdown expected in Britain because Brexit, and is even talk of a recession. However, there tended economic data about the effects of Brexit in the economy and will not be available before September. Testifying before a parliamentary committee on Tuesday, the governor of the Bank of England Carney acknowledged that Brexit could lead to the collapse of the economy and the measures that the central bank was taking in response not provide a "magic bullet" against Brexit.
On the political front in Britain, developments are developing rapidly. On Wednesday, Theresa May replaced David Cameron as prime minister. May was a strong supporter of the field remain, but now entrusted to preside over the departure of Britain from the European Union. May said the government has every intention of honoring the referendum, emphatically stating this week that "Brexit means Brexit". However, the output of Britain could be a complicated and lengthy affair, especially as Boris Johnson has called in May, the camp leader "Stop" as chancellor. The British electorate may have voted to leave the EU, but the vote can be the easiest part of the process. A member of the EU has never invoked the exit clause before, and there is no timetable for when the output or what kind of trade agreement will occur will define the new economic relationship between the EU and Britain. The vote Brexit leave the EU in late June it has caused political and financial turmoil in Britain and boosted gold as nervous investors have taken the merchandise safe haven. Still, there is some optimism in the air when the political situation has stabilized much faster than expected, as the Conservatives were not expected to choose a successor to Cameron before October.
/ USD XAU Basics
Thursday (July 14)
8:30 PPI. 0.3% estimate. Current 0.5%
8:30 jobless claims US. 263K estimate. 254K Real
Core PPI 8:30. 0.1% estimate. Current 0.4%
10:30 US Natural Gas Storage. 61B estimate. Real 64B
Upcoming key events
Friday (July 15)
8:30 US CPI. Estimate 0.2%
8:30 The US core CPI. Estimate 0.2%
8:30 US retail sales. Estimate 0.4%
8:30 Retail Sales US Core. Estimate 0.1%
10:00 US sentiment Unit of measure preliminary consumer. 93.7 estimate
* Key Announcements are highlighted in bold
* All times are EDT release
XAU / USD for Thursday July 14, 2016
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