Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Oil Climbs as U.S. Supplies Shrink to Lowest Since Start of Year

Oil surged to an eight-week high after the government said U.S. stockpiles shrank to levels last seen at the start of the year. Futures rose 1.8 percent in New York. Crude inventories declined by 7.21 million barrels last week to the lowest since Jan. 6, according to data from the Energy Information Administration Wednesday. Gasoline stockpiles fell for a sixth week to the lowest level since December, the data showed. “The primary driver behind the rally is that you’ve got more inventory d...
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Saudi Arabia Turns Off the U.S. Oil Tap

At last, Saudi Arabia seems to be doing what it takes to reduce the world's most visible oil glut: the one in the U.S. Unfortunately, its renewed vigor comes as OPEC's deal to reduce excess crude stockpiles starts to show signs of unraveling elsewhere, a subject that will be wrestled with by the group's oil ministers as they and other producer nations meet in St Petersburg on Monday. Saudi Slump Weekly U.S. crude oil imports from Saudi Arabia have fallen sharply since early June So...
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Amber Waves of Grain

Of the 14 commodities we track closely at U.S. Global Investors, wheat rose to take the top spot for the first half of 2017, returning more than 25 percent. The grain was followed closely by palladium—used primarily in the production of catalytic converters—which gained 24 percent. To view our ever-popular, interactive Periodic Table of Commodity Returns, click here. Between the start of the year and June 30, the Bloomberg Commodity Index contracted 4.03 percent, with energy weighi...
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Contributed Commentaries It’s Do or Die for Gold and Silver

(Kitco News) - Being bullish on the metals has been painful; there has been a dramatic drop off in interest as these markets have mostly drifted or got pounded lower. We were and still are bullish but our line in the sand comes right here in the $1,220 area in gold(puking out under $1,200) and the $16.00 level in silver (trading at $15.98, puking out at $15.70). The metals story has been very conflicted with the weight on the dollar and the support levels the metals had the weakness is surpri...
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Instant View: Yellen – Economy healthy enough for gradual rate rises

(Reuters) - The United States is healthy enough to absorb further gradual rate increases and the slow wind down of the massive bond portfolio accumulated by the Federal Reserve during the financial crisis, Fed Chair Janet Yellen said in prepared testimony to be delivered to Congress Wednesday morning. Key Points: * Yellen: Interest rates are rising, and "would not have to rise all that much further" to reach what the Fed considers a neutral rate Comments: RICHARD SCALONE, CO-HEAD OF FORE...
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The Federal Reserve is divided over its longer-term path

While almost all members of the Federal Reserve voted to raise interest rates in June, the central bank appears to be divided over its longer-term plans as data continue to show that the economy is not vigorously responding to its rate increases, released minutes from the Fed’s closed-door June meeting reveal. Even among Fed officials who supported increasing the benchmark interest rate in June, several “indicated they were less comfortable” with the Fed’s longer-term plan for raising rat...
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Here’s What Sent the Euro Rocketing to a New High

The European single currency surged past a one-year high against the U.S. dollar Wednesday as investors extended bets on rate increases and faster growth in the Eurozone economy. The moves followed a speech from European Central Bank President Mario Draghi Tuesday in Portugal, where he appeared to suggest that the Bank could move away from its current strategy of negative rates and ongoing bond market purchases now that inflation dynamics are starting to improve and job creation is beginning ...
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Commodities Rout Shouldn’t Be Taken Lightly

By almost any measure last week was a bad one for commodities, as practically every part of the market lost value. West Texas Intermediate crude oil fell under $44 per barrel, Brent crude broke below $50 per barrel and copper tested $5,500 per metric ton. In China, coal and iron ore tumbled. Gold, the supposed ultimate haven, dropped to almost $1,225 per ounce. Last week’s purge capped a steady decline in prices since mid-April and, more broadly, since February based on the Bloomberg Comm...
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MORE CRISES AHEAD? USD, GOLD CHARTS BOTH LOOKING UP

As Elliott Wave amateurs, we appreciate the work done by our anonymous friend below. it is thorough and minimizes subjectivity while acknowledging bias. These are hallmarks of a good analyst in our opinion. Further, the combination with traditional technical analysis is welcome.   We hope to see more from the author. - SKG Originally titled: Trend lines met, technical's are set - Dollar is ready to rally EURUSD 30 min 4 Hours Daily My Bias: short in wave 3 blue. Wave Structure...
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