Asian and European trading sessions:

Euro: The Euro kept its positive trading dynamics and traded on highs against almost all major currencies on the background of yesterday’s statements of the president of the European Central Bank,Mr. Mario Draghi who said that the financial and credit institutions can rely on the provision of unlimited liquidity by the ECB. The EUR / USD pair even went above $ 1.2600 on that news and recorded the new weekly high of $1.2625 mark.

 

U.S. Dollar: The dollar traded in a range around its weekly lows during the Asian session in anticipation of the today’s speech of the Federal Reserve’s chairman Mr.Ben Bernanke. The market was full of expectations and waited for new signals on easing of the monetary policy for further support of the U.S.economy. The fact that the People's Bank of China lowered the benchmark interest rate by 25 points also put some pressure on the dollar by providing a positive sentiment on markets thus increasing the risk appetite among investors. In details, the benchmark interest rate was lowered for the first time since 2008 to 3.25 % from 3.50%.

 

British Pound: During the Asian session the GBP / USD pair fell to $1.5430 after yesterday's big run. However, the positive sentiment came back during the European session and the pound showed a growth against major currencies. The announcement of the Bank of England on the decision to leave the interest rate unchanged at the 0.50 % provided some support for the sterling during the session. Although, the Bank of England left the bond repurchase program at 325 billion pounds, as it was expected, it did not mention any further additional measures aimed for supporting the national economy in spite of the worsening situation in the British economy and the deepening debt crisis in the euro area. The GBP / USD grew, in contrast, into the region of $ 1.5598.

 

Japanese Yen: The USD / JPY pair grew up into the Y79, 77 areas on the European trading session. The yen fell against most of the major currencies today on continued growth of the risk appetite among investors as well as on rising World’s stock markets.

 

Australian dollar: The Australian dollar continued to strengthen against all its competitors after the yesterday’s publications of positive macroeconomic statistics of the Australian economy’s performance. In addition, it also got support from the today’s report on the employment situation in country, which improved much better than analysts' expected and resulted in May a rise in the number of jobs in Australia by 38.9K, versus forecasted 0% and compared with the revised increase in April by 7K.

 

 

American trading session:

 

U.S. Dollar: The dollar strengthened against its competitors on a background of speech of the Federal Reserve chairman Mr.Ben Bernanke who did not mention any additional measures for supporting the U.S. economy.

 

Japanese Yen: The yen fell against all major currencies after China lowered the benchmark interest rate for the first time since 2008 thus caused decrease in demand for safe heaven assets.

 

Gold: The Gold prices dropped down on the COMEX to $1583 per troy ounce area on the background of the speech of Mr. Ben Bernanke who did not mention any signals on additional measures for stimulating the U.S. economy.

 

Silver: The Silver prices fell by the $1.05 to the $28.40 per troy ounce today.

 

Oil: The Oil fell for the same reason as the Gold. The cost of the WTI July’s futures on the NYMEX today declined to $ 83.51 per barrel.

Source : https://forex-metal.com

Asian and European trading sessions:

Euro: At the beginning of the Asian trading session the euro continued its third-day of rising in anticipation of a result of today’s G7meeting which would have been hold as a conference call between the Finance Ministers and the Central Bank Governors of the ' Group of Seven ". The EUR / USD pair grew up, updating the weekly maximum. However, the Euro resumed its major downtrend amid weak reports which were published today as well as on statements of the Minister of Finance of Spain, Cristobal Montoro who in his speech asked the European financial institutions to help Spain in recapitalizing its banking system. The published macroeconomic data came out much worse than expected. Indeed, the Retail Sales in the Euro zone fell to -2.5% versus the forecasted -1.1% and Germany’s Factory Orders fell to -1.9% vs. -1.1% in April in Month to Month term. The only one, the report on overall Purchasing Manager Index for the euro area went better than expected. The EUR / USD pair suffered big intraday loss falling to the area of $ 1.2408 during the European session.

US Dollar: The dollar became cheaper today relative to most major currencies on the background of decreasing demand for " save heaven " assets as well as the rising of the Asian stock markets.
Australian dollar: The important news of today for the Australian currency was the decision of the Reserve Bank of Australia on interest rate in country. The RBA lowered the benchmark interest rate today by 0.25 % points - to 3.5 % per annum. Despite the fact, the currency grew up today against almost all its competitors. The 3.5% rate which the lowest since 2009 was lowered amid fears that the debt crisis problems in Europe and China's economy slow down will put a negative impact on the Australian economy. Indeed, the Reserve Bank of Australia reduced its benchmark interest rate for a second consecutive month for the reason of supporting the development of the Australian economy which depends on growing of the commodity prices.
 

American trading session:

 

 Japanese Yen: The yen fell against the dollar today after the leaders of the G7 group agreed to cooperate for preventing the excessive growth of the currency in the Forex market. The Japanese Finance Minister Mr.Jun Azumi noted that the recent growth of Japanese Yen as well as decline of the Japan’s stock market had a negative impact on the economy.
Oil: The price of the July futures of WTI on the NYMEX today was kept in the range of $ 83.29 - $ 84.87 per barrel. The Oil traded in range due to the published today positive report on the index of activity in the services sector of U.S which showed an unexpected growth and continued to present the investors' fears that the situation in the European economy would affect demand for Oil.
Gold: Today, the June’s Gold futures on the COMEX traded around $1617, 9 per troy ounce. The Gold was trying to copy the Oil’s trading dynamics and traded mostly flat on the background of discussions of finance ministers and central bankers of the (G7) about the situation with the debt crisis in the euro zone, which threatens the whole World economy.
 

Technical analysis for 6/06

EURUSD
The pair is rolling back to 1.25690.
Resistance:  1.25690, 1.26897, 1.28630
Support:  1.23907, 1.21813, 1.19332

GBPUSD
The pair is aiming to 1.54842.
Resistance:  1.54842, 1.56722, 1.58543
Support:  1.53482, 1.52063, 1.50594

USDCHF
The pair has tested channel line and rolling back to 0.95074.
Resistance:  0.96220, 0.97427, 0.98512
Support:  0.95074, 0.93949, 0.93069

USDJPY
The pair is aiming to 79.070.  Once this level is broken the pair will rise to 79.707.
Resistance: 79.070, 79.707, 80.438
Support:  78.345, 77.539, 76.463

AUDUSD
The pair has risen to 0.98436. If this level is broken the pair will rise to 0.99207.
Resistance:  0.98436, 0.99207, 1.00067
Support: 0.97423, 0.96579, 0.95611

Source : https://forex-metal.com

Asian and European trading sessions:

Date Review : 5/06/2012

Euro: The EUR / USD pair tested the level $ 1.2380 during the Asian session on the background of fears that European leaders would not agree on new measures for overcoming the debt crisis in Euro zone.

U.S. Dollar: The dollar rose against a background of falling of Asian stock markets on the background of negative economy statistics from China and Europe. As it was posted by the Federation of Logistics and Purchasing of China the PMI industry of the country recorded 50.4 points in May, which was the lowest level in the past five months. The unemployment rate in the 17 euro zone countries remained at a highest mark of 11% in April in monthly terms, unchanged from the revised in March.

British Pound: During the Asian and European sessions the GBP / USD pair was trading between $ 1.5340 -$ 1.5380 in relatively narrow range on the background that the UK financial markets were closed today due to National holiday as well as on lack of macroeconomics data for today.

Japanese Yen: The USD / JPY pair was trading around Y78.15 during the Asian session and after breaking the resistance level of Y78.20 moved higher to theY78.34 area. The reason that the dollar strengthened against the yen was the fact that the treasuries’ yields rebounded from a record low for the first time in four days. Also, the statements the of Minister of Finance of Japan Mr. Azumi 's about the readiness to take " decisive action " in order to reduce the "excessive movement" of the national currency which were made by June 1 contributed to correction in USD / JPY pair after the three-day of fall.

Australian dollar: The Australian currency dropped today against its competitors on the early Asian session in anticipation of tomorrow's meeting of the Reserve Bank of Australia, where the RBA would probably reduce interest rate by 25 basis points to 3.5%.

American trading session:

 

Euro: The Euro continued to trade higher throughout the American trading session against the background of politicians’ discussions the possible restructuring of the banking sector of euro area as well as the good news from Portugal. The information that the Vice -President of the European Commission, Mr. Olli Rehn as the European regulator was considering the possibility of direct recapitalization of banks through the mechanism of the euro area financial fund of stability had supported the Euro currency and the EUR/USD pair went to the $1.2500 area.

U.S. Dollar: As it was reported today, the volume of Industrial Orders in the U.S. in April 2012 decreased by 0.6 % compared to the analysts’ expectation of predicting their growth by 0.2 %.This news was not supportive for the Dollar and was the reason of its decline during the session against major traded currencies.

Gold: After the Friday’s monster move by almost 60$ the June’s gold futures traded in a range $1608, 2-$1627, 8 per troy ounce on the COMEX today. The Gold futures rose due to increased investment demand for physical Gold caused by fears of further worsening the debt problems in the euro zone.

Oil: The cost of the WTI July’s futures on the NYMEX today rose to the level of $ 83.82 per barrel. Before this correction the Oil prices hit the lowest level in eight months against the backdrop of weak statistics on Industrial Orders in the U.S. in April as well as negative reports on China’s economy.
 

Technical analysis for 5/06

 

EURUSD
The pair is rolling back to 1.25690.
Resistance:  1.25690, 1.26897, 1.28630
Support:  1.23907, 1.21813, 1.19332

GBPUSD
The pair has reached Fibonacci 23%  1.53482.
Resistance:  1.54842, 1.56722, 1.58543
Support:  1.53482, 1.52063, 1.50594

USDCHF
The pair has tested channel line and rolling back to 0.95074.
Resistance:  0.96220, 0.97427, 0.98512
Support:  0.95074, 0.93949, 0.93069

USDJPY
If the pair stays above 78.345 the pair will rise to 79.070. If the pair stays below 78.345 the pair will decline to 77.539.
Resistance: 79.070, 79.707, 80.438
Support:  78.345, 77.539, 76.463

AUDUSD
The pair is trying to stay above 0.97423, it may bring pair to test 0.98436.
Resistance:  0.98436, 0.99207, 1.00067
Support: 0.97423, 0.96579, 0.95611

Source : https://forex-metal.com

When will the markets start to stabilize?

When will the markets start to stabilize?

 Gloomy economic data disturbed markets last week and set off alarm bells that the U.S. economy may be following Europe and Asia into a slowdown. Friday’s grim jobs report showed that the economy added just 69,000 new jobs in May, far below consensus estimates, and the unemployment rate rose to 8.2% from April’s 8.1%

. Equity markets tumbled on the news, and the Dow showed its worst performance of the year, dropping 2.70%, while the S&P and Nasdaq lost 3.07% and 3.17%, respectively. The Dow Jones Industrial Average has now slipped into negative territory for the first time in 2012, exactly one month after closing at a multi-year high. Meanwhile, the S&P 500 is still up 1.6% year-to-date, and the Nasdaq Composite is up 5.5%.

 Earlier in the week, the first quarter GDP growth estimate was revised downward to 1.9%, from the 2.2% originally reported. Although analysts had initially expected GDP growth of at least 2% in 2012, that number is beginning to look overly optimistic. Revisions to reported estimates are worth paying attention to because they can serve as leading indicators of which direction the economy is going next. The jobs data is troubling and has potential to further stall the economic recovery. Rationalizations that a warm winter artificially shifted job growth earlier in the year appear increasingly thin. The job market is simply not growing enough to ignite a robust recovery. Thankfully, the economy is still resilient in some areas.

 Inflation remains reasonably low, auto sales have continued to grow, and falling energy prices are easing the strain on consumer pocketbooks, opening the door to increased consumer spending. Even so, some analysts believe that we are falling into a familiar pattern where the economy gains traction early in the year only to falter in the second quarter.

 With both perspectives in mind, it would be premature to predict which way things will move next. Interestingly, in 2011, the Dow's first close in negative territory for the year was on August 4th, but the year still ended with a 5.5% gain. While it’s hard to dredge up the fortitude to stay invested when faced with such a slate of bad news, we haven’t yet seen the effects of lowered gas prices on consumer spending, and the U.S. is still much better off than Europe.

We live in a dynamic economic system; when one asset class goes down, another comes up. We can’t predict the future, but we should always continue looking for opportunities!

 ECONOMIC CALENDAR: Monday: Factory Orders Tuesday: ISM Non-Mfg Index Wednesday: Productivity and Costs, EIA Petroleum Status Report, Beige Book Thursday: Jobless Claims, Ben Bernanke Speaks 10:00 AM ET Friday: International Trade .

 HEADLINES: Factory activity growth slows in May. The Institute for Supply’s monthly report indicated that U.S. manufacturing grew at a slower rate in May, pushed lower by weaker hiring and declining production. However, positive new orders data suggest that manufacturing will pick up in June.

 Falling gas prices provide reprieve for consumers. A lengthy plunge in oil prices has pushed gas to prices as low as $2.99 in some areas, while the national average has dropped 30 cents since April to $3.61. The drop could give consumer confidence a much-needed boost as Americans have more discretionary income to spend.

Consumer spending rises 0.3% in April. Although consumer spending edged up from March’s 0.2%, the growth was the slowest in five months, indicating that Americans may have trouble sustaining future spending. Spanish P.M. opens door to unified European fiscal authority.

 In a speech, the Spanish prime minister reiterated a commitment to sticking with austerity plans to usher Spain out of a looming crisis and indicated support for the creation of a single fiscal body to maintain the integrity of the euro.

QUOTE OF THE WEEK: “It is hard to fail, but it is worse never to have tried to succeed.” - Theodore Roosevelt Share the Wealth of Knowledge!

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The unemployment in Germany dropped to 6.7% in April; however, the Euro continued to fall.,,

*


DATE REVIEW : 31.05, 2012

*

* *

*Asian and European trading sessions:*

* *

*Euro*: During the Asian trading session the EUR / USD pair has slightly
recovered from yesterday's big sell off day. There were couple reasons
for this growth as well. First, the Euro strengthened against the
backdrop of conducted in Ireland vote for the budget pact which will
establish the austerity measures for the country within the fiscal pact
of EU. Also, the fact of taking profit on short positions at the end of
the month supported the currency growth. As the result, the EUR / USD
pair rebounded above $ 1.2402. The published today macroeconomic data
from Europe did not provide any significant impact on the Euro currency
trading dynamics. The reports came out with mixed results except the one
on the labor market in Germany which showed a decline in unemployment in
this country in April to 6.7% against the forecasted value of 6.8%.
However, the selling pressure on the Euro currency was still strong; the
EUR / USD pair pulled back towards the yesterday's lows of $1.2370 area.

*U.S. Dollar*: The dollar during the Asian session fell against major
currencies on the background of taking profits on long positions on this
currency as well as on anticipation of the publication of the block of
important macroeconomic statistics on the U.S. economy.

*British Pound*: The Pound was trading lower against all its
competitors. The GBP / USD pair tried to recover during the sessions by
rising up to $ 1.5530 level, however after the new sellers came in the
couple fell sharply and updated new lows by breaking many support levels
on its way down to the $1.5390 area.

* *

*Japanese Yen*: There were more and more investors who began to buy the
Japanese currency against the flow of negative news from the euro zone.
As the result the Yen rose against all major currencies. Indeed, the
demand for the yen as for the safe-haven currency grew today on fears
about the banking problems in Spain as well as on the negative fact of
strengthening yields of the Spanish and Italian bonds to the critically
high level. The USD / JPY pair had slightly dropped to Y78.70 during the
Asian session before getting into a deep intraday sell off during the
European session. The pair reached the Y78. 45 area by the end of the
session.

* *

* *

*American trading session:*

* *

*Gold: *The trading dynamics of the Gold were depended on published US
economy macroeconomics data. The number of Americans who first applied
for unemployment benefits grew to 383K versus the forecasted values of
370K and the number of jobs in non-agricultural sectors of the U.S.
economy grew in May only to 133K positions vs. predicted 150K. The cost
of the June Gold futures was kept in the range of $ 1552.8 - $ 1573.6
per troy ounce today on the COMEX.

* *

*Oil: *After the publication of the report on amount of oil in US
inventories from U.S. Department of Energy the Crude oil futures fell
increasing their previous day's losses. As it was reported, the
stockpiles of Crude oil rose for the week of May 25 by 2.2 million to $
384.7 million thus showing the 10th consecutive weekly increase. This
amount was equal to a 22- year high. Also the Oil fell on speculation
that the debt crisis in Europe will slow down the U.S. economic growth
and therefore reduce demand for fuel. The cost of the July WTI futures
fell to $ 85.84 per barrel on the NYMEX today.

*Silver: *The silver's spot prices (XAGUSD) showed today mixed trading
dynamic and were kept in the range of $27.55 to $28.21per troy ounce.

Source : https://forex-metal.com <https://forex-metal.com/>