Futures News 

Gold futures build on week’s losses as dollar gains, inflation risk in focus

“Gold futures on Wednesday deepened their retreat from the key $1,300 level, as a stronger U.S. dollar weighed on precious metals prices” writes Rachel Koning Beals for marketwatch.com. New York Fed President William Dudley and Dallas Fed President Rob Kaplan are due to take part in a panel discussion about economic growth, with the event taking place in New York City at 8 a.m.Gold futures on Tuesday suffered their steepest one-day percentage decline in nearly four weeks amid signs of rising inflation in the U.K. and its threat for higher…

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News Regulators 

Fed flunks econ 101: understanding inflation

“One of the newer, more laughable explanations for persistently low inflation is that inflation expectations have slipped” writes Caroline Baum for marketwatch.com. Strangelove approach and learn to stop worrying and live with low inflation and low unemployment.Hence, normalizing interest rates is “on track,” as the headline above noted, even though the relationship — between unemployment and inflation — is decidedly off track.Option #1 involves learning to live with a low, stable inflation rate about 0.5 percentage point below the Fed’s explicit 2% target.Option #2 means taking some additional actions to…

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News 

Philip Hammond must not use rise in state pension as ‘excuse’ to mount Budget tax raid on people’s savings

“Philip Hammond has been warned he must not use a hike in the state pension for millions of people as an “excuse” for a raid on people’s retirement savings in his Budget next month” writes Deputy Political Editor for telegraph.co.uk. From April next year the state pension will rise by 3 per cent, equivalent to £250 per person, after inflation reached the highest level for five years.Under the Government’s “triple lock” the state pension rises in line with earnings, inflation of 2.5 per cent, whichever is higher. Official inflation figures…

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News 

Dollar gains for a 4th straight day

“The U.S. dollar extended its gains against major rivals on Tuesday after a round of economic data, set to stretch its win streak to four sessions” writes Markets Reporter for marketwatch.com. Against the yen USDJPY, +0.01% the dollar was stronger, trading at ¥112.29 versus ¥111.19 in the previous session.Against the Canadian dollar USDCAD, +0.0399% the buck was up at C$1.2552, compared with C$1.2520 late Monday.Still, strategists read some weakness in real wages that might suggest that the recent gains in inflation aren’t as strong as headlined, weighing on the pound. Source:…

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News 

UK inflation hits highest since April 2012

“British inflation rose to its highest level in more than five years in September, according to official data that could make the Bank of England more likely to raise interest rates next month” writes Simon Dawson I for cnbc.com. Consumer prices last month were 3.0 percent higher than a year ago, the Office for National Statistics said on Tuesday, matching economists’ average expectation in a Reuters poll and marking the fastest rise since April 2012.Rising inflation – driven largely by the pound’s fall since last year’s Brexit vote – has…

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News Oil 

UK inflation hits five-year high of 3 per cent

“Consumers face rising costs for essentials, with food and transport prices driving rising inflation, the Office for National Statistics said on Tuesday” writes Ben Chapman for independent.co.uk. Businesses are also facing a squeeze as Retail Price Index inflation, which will be used to set business rates next year, was 3.9 per cent in September.Rising oil and fuel prices also contributed to increasing inflation in September, the ONS said. Source: independent.co.uk Share This:

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News 

The dollar is ticking higher

“The dollar is ticking up on a relatively quiet day for US economic data” writes Elena Holodny for businessinsider.com. The US dollar index was up by 0.4% at 93.60 at 9:09 a.m.ET. The dollar slid  last week  after inflation data came in below expectations and the September FOMC minutes showed that many Fed officials are concerned that inflation will remain lower for longer.The index is up by about 9% since US President Donald Trump’s inauguration. Source: businessinsider.com Share This:

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News 

U.K. Inflation Speeds Past 5-Year High as Bank of England Pressure Intensifies

“U.K. inflation accelerated past a five-year high last month, the country’s official statistics office said Tuesday, adding a further complication to the Bank of England’s plans to control consumer price increases as the economy shows further signs of a sharp slowdown” writes Martin Baccardax for thestreet.com. So-called core inflation, which strips out volatile food and energy prices, was pegged at 2.7%, the ONS said.The BoE is widely expected to lift its key Bank Rate by 25 basis points on November 2 as it attempts to manage its price stability mandate…

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News 

U.K. Inflation Climbs to 5 1/2-Year High on Food, Transport

“However, retirees will see their pensions rise by at least 3 percent next year, in line with the September inflation rate” writes unknown author for bloomberg.com. The pound erased an advance after the inflation data to trade little changed at $1.3242 as of 11:38 a.m.Increases in oil and petrol prices mean it’s “likely” inflation will climb higher in October, he said in written remarks released just before the latest data.The September inflation rate has traditionally been used to uprate welfare benefits for the following April, but many have been frozen…

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