Oil falls on stronger dollar, U.S. supply jump
SINGAPORE, Oct 27 (Reuters) - Oil fell on Wednesday as the dollar strengthened and after an industry report showed a bigger-than-expected gain in U.S. crude inventories last week.
"The dollar is clearly a major driver of oil prices at present, and our prediction that this would be the case is now being confirmed by the increased correlations evident in the market," JP Morgan analysts headed by Lawrence Eagles said.
GLOBAL MARKETS: Dollar higher on Fed doubts, stocks flat
NEW YORK, Oct 26 (Reuters) - The dollar rose broadly on Tuesday as investors speculated the Federal Reserve would proceed more cautiously in announcing any asset-buying next week, scaling back bets against the greenback.
"Everything is dependent on the FOMC and people don't want to take aggressive positions ahead of this very big decision," said Stephan Maier, currency strategist at Unicredit in Milan.
Gold lower, silver steady after CFTC comment
SINGAPORE, Oct 27 (Reuters) - Gold edged lower as the market looked set to consolidate ahead of the U.S. Federal Reserve's decision on further monetary easing next week, while a stronger dollar also weighed.
"The market is entering a period of consolidation. The euro is under pressure and the dollar isn't doing a great deal, making the precious metals market quiet," said Ellison Chu, manager of precious metals at Standard Bank Asia in Hong Kong.
China should significantly boost gold in reserves -media
BEIJING, Oct 27 (Reuters) - China should significantly boost the amount of gold held in state reserves, a newspaper run by China's Ministry of Commerce said on Wednesday, citing a local researcher.
Meng Qingfa, a researcher with China Chamber of International Commerce, was quoted by the International Business Daily as saying that China should eventually boost its gold reserves to a level equal to that held by the United States.
PRECIOUS-Gold edges lower as dollar firms, eyes Fed meet
LONDON, Oct 26 (Reuters) - Gold edged lower in Europe on Tuesday as the dollar firmed a touch, but held near $1,340 an ounce as investors awaited clues from U.S. data due this week on the prospect of further monetary easing in the United States.
"Markets are now in the process of discounting the weekend impact of the G20 meeting and are bracing for the next big move by the Federal Reserve," said Pradeep Unni, senior analyst at Richcomm Global Services.
FOREX-Dollar steadies; sterling jumps on GDP data
LONDON, Oct 26 (Reuters) - The dollar steadied on Tuesday, with investors wary of pushing it lower due to uncertainty about what easing measures the Federal Reserve may take next week, while UK economic growth figures lifted sterling.
"Japan has pointed out quite clearly that they will intervene in dollar/yen if it falls too quickly and the market is aware there is no easy one-way bet on dollar/yen downside," said Stephan Maier, currency strategist at Unicredit in Milan.
Second thoughts on QE lift dollar, hit stocks
LONDON, Oct 26 (Reuters) - Second thoughts about the outcome of the next Federal Reserve meeting weakened stocks and steadied the dollar's decline, underlining how crucial the prospect of more Fed asset-buying has become to financial markets.
"The dollar is in a bit of a holding pattern. The market is still mulling over the U.S. QE story and dollar selling is a bit less of a one-way bet than it was," said Jeremy Stretch, currency strategist at CIBC.
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