The pressure accumulated on the gold to be traded near 1360$ as the risk appetite could find its way back to the markets in the beginning of the week staving off more than a week of continued losses.
The Dow Jones index could close the session up by 181 points after it opened it in the green territory and its future rate is still showing adding more gains during the Asian session which followed the US one as expected to watch all of its major stocks indexes up.
The investors have seen in the current prices following Crimea referendum new chances can encourage to load risk again pushing the US treasuries yields up ahead of the Fed’s waited decision of having another tapering of its QE by $10b monthly.
From another side, the release of Feb US industrial production could support this bullish sentiment by its rising by 0.6% monthly while the market was waiting for only 0.2% after falling by 0.3% in January has been revised to be by 0.2% and the capacity utilization could rise also in February to 78.8% while the market was waiting for 78.6% from 78.5% in January and March US NY came also up but to 5.61 while the market was waiting for 6.5 from 4.48 in February.
The return of the risk appetite could also put pressure on the greenback across the broad to help the single currency to maintain a place over 1.39 versus it despite the release of Feb HICP which came as the same as January up by 0.7% while the market was waiting for 0.8% as the preliminary reading said before.
It is the fifth month in row we see this rate below the half of ECB 2% yearly rate however the ECB president Mario Draghi has tried recently to tell the markets that the picture of the European economy is really mixed currently. So, we are not seeing strong unambiguous developments but we are seeing first signs of a development can be protracted in a time and strong in another time.
It looks to the markets participants currently that the ECB is not in rush to fight easing of the pricing power by taking new easing measures soon after Draghi has mentioned following its recent meeting that it has seen economic improvement in the recent weeks.
This message paved the way to EURO for reaching the current levels which have not been seen in the recent 2 years before his returning back by the end of last week to say that the ECB forward guidance may help to lower real interest rates and weaken the euro which has become increasingly relevant in our assessment of price stability pushing the ECB to monitor its current gains.
This was the most obvious message from Draghi about the single currency however there were other clearer comments from other ECB governors like Christian Noyer and Ewald Nowtony who said before that the high single currency exchange rates hurt the EU exports.
Such comments are expected to be repeated weighing down on the single currency in the face of its appreciating especially as the high currency value cannot be welcomed also during current emerging deflation pressure like the EU economy faces meanwhile.