Finance World

Saxo Bank, the online multi-asset trading and investment specialist, has published its Q2 outlook warning investors of the end to the current cycle of ”extend and pretend” as the planned economy model of the past eight years comes to breaking point.

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VIENNA, 27th March, 2015 (WAM) -- The price of OPEC basket of twelve crudes stood at US$54.55 a barrel on Thursday, compared with US$50.83 the previous day, according to OPEC Secretariat calculations.

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By: Head of Commodity Strategy at Saxo Bank Ole Sloth Hansen

The rising dollar has become one of the most watched features and one the biggest drivers across most asset classes. During the past month the Greenback has rallied by almost 5% against a basket of 10 leading global currencies, as improved US growth prospects have brought closer the first official rate hike in more than a decade. 

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The Federal Open Market Committee meeting on Wednesday was the highlight of this week. A lot of attention is currently being given to the US Federal Reserve as speculation about when and by how much it will raise its official Fed Funds rates. The statement by Fed chair Janet Yellen left the door open for a rate hike in September but at the same time the committee turned more dovish on how much rates need to rise.

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By: Head of Commodity Strategy at Saxo Bank Ole Sloth Hansen

 

February may have marked a first rise in eight months for commodities, but it was back to type in the first week of March with weakness across most sectors. 

This was driven by the adverse impact of the dollar rising to a fresh 11-year high against the euro while China downgraded its growth target for 2015 to just 7%, the lowest in more than decade.  

 

The resumption of dollar buying occurred as the market prepared for the beginning of quantitative easing from the European Central Bank. 

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