The euro weakened the most in six months vs. the USD$, as inflation in the region slowed more than forecast and improving U.S. economic data fueled speculation the Federal Reserve will taper stimulus in coming months. Treasuries and gold fell. Inflation in the euro region slowed to a four-year low of 0.7 percent and unemployment held at a record 12.2 percent, fueling speculation the central bank in Euro zone will cut rates. The Fed maintained its $85 billion in monthly bond purchases yesterday, while saying the economy shows signs of “underlying strength.” U.S. data today showing the biggest jump in a gauge of business activity in more than three decades and a drop in jobless claims added to speculation the central bank will consider tapering stimulus at upcoming meetings. Oil is down 0.10 cents to USD$96.67. Gold is now at USD$1323.70USD/oz <25.60> and Silver slumps large to 21.92 <1.06> leaving the Gold Silver Ratio at 60.39. (Bloomberg)
Note movements are based on previous days close.
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