Much Ado About Nothing

Much Ado About Nothing

Today Mario Draghi had to fight with the same rush of the investors that Ben Bernanke encountered yesterday. Everybody was interested in any major change that could happen in the short term, like the possibility of modifying the interest rate. As just last month was announced that they would maintained the low interest rate for an “extended period of time” it’s logical that no important changes were expected today, especially because the economy didn’t report major changes (like the inflation exceeding the 2% threshold). To sum up, a trace of optimism was kept, as the economy is expected to recover at a slow pace.

The U.S. data maintained the optimism of the last days as the ISM Manufacturing Index achieved a rating of 55.4 points (as last month got 50.9 points). The manufacturing industry is gaining momentum and pledges to sustain further positive numbers for the indicators of the labour market. Speaking about the labour market, this month were registered fewer unemployment claims (326k), value that reaches a minimum level of May 2013. Likewise, an extra vote was added for the QE3 tapering that is due to happen in September. Gold price is likely to remain in the last 2 weeks’ range at least until a final decision is taken regarding the moment of taper of the monetary stimulus program.

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