FOREX TIPS: March 2012

Saturday, March 31, 2012

FOREXYARD: Forex News Blog

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Posted: 30 Mar 2012 05:22 AM PDT

Good news for the 17-nation currency as Europe’s finance ministers met today to discuss a possible increase in the rescue fund.As a result of the meeting, European stocks extended the biggest first-quarter gains since way back in 2006 and the Euro appreciated whilst default risk dropped.

The Euro made gains of 0.4% over the U.S dollar and the cost of insuring European sovereign debt against default broke a two-day increase.

The first Quarter saw the Euro appreciate 3% versus the U.S dollar in largest quarterly gain in a year, also showing a boost of 9.9% against the Yen in the same period, its biggest quarterly gain in 11 years.

Officials met today to discuss a possible increase of the resuce funds. The increase on emergency lending was said to be close to 940 billion euros which would be set to go until mid 2013.

In the end, the Eurozone countries came to an agreement to boost their firewall against the debt crisis to roughly 800 billion euros. This was officialy announced by Austrian Finance Minister Maria Fekter in Today’s meeting.

The real significance surrounding the meeting today was not about how much funds are increase by, but its do with the commitment shown by the European finance ministers to tackle the issue and boost funding levels.

Friday, March 30, 2012

FOREXYARD: Forex News Blog

Precious Metals Outlook
Euro Back Up While Gold Sinks
Aussie Dollar Falls Whilst Greenback Sees Gains

Precious Metals Outlook

Posted: 29 Mar 2012 05:24 AM PDT

Prices of both gold and silver steeply declined during yesterday’s trading and therefore cancelling out the gains made in the beginning of the week.The price of the yellow metal fell on Wednesday by 1.61% to $1,660 while silver also showed a decline of 2.41% to $31.83. Overall during the month of March Gold has dropped by 2.97% whilst silver dropped by 8.11%.

The U.S core durable report was published yesterday and the results were positive, even though the figures fell short of the projections.The report not only affected metals, but other instruments too,including US Stock market indexes as well as other commodities.

Meanwhile, the European finance ministers will be meeting today, and there is a possibility that they will agree to raise the rescue funds to 1 trillion Euros in order to keep the debt-crisis at bay and ease market concerns.If this outcome will take place, the Euro could be boosted as well as having a positive affect on both gold and silver prices.

Besides the finance ministers meeting today,there are a few additional economic events taking place today. This includes the U.S Jobless Weekly Update,Final U.S GDP 4Q 2011 Estimate and Fed Chairman Ben Bernanke is due to say a few words.

Over the past few trading days we have seen both metals change direction rather sharply whilst moving in no clear direction. Certain reports and figures have disrupted gold and silver’s gains made early in the week and the recent protests in India which have moved into their second week,are also partly responisbile for the decline in gold prices.

Today the EU Summit will take place and its possible that the outcome of the meeting will have a strong affect on the Euro and as a result, could affect the direction of the two metals.The U.S jobless weekly update is another report which has the potential to impact the commodities market due to its possible affect it will have on the US dollar.

Euro Back Up While Gold Sinks

Posted: 28 Mar 2012 07:28 PM PDT

Even though we saw the U.S Dollar show some gains over the Euro during Wednesday’s trading, news out of the Euro-zone has been comforting for the 17 nation currency.

The Euro was 0.4% shy of a one-month high after European finance ministers are reportedly set to discuss plans of increasing the rescue fund.The Euro was preparing for its first quarterly gain against the Greenback since June prior to data reports out of Germany, the region’s largest economy that unemployment in the region was it its lowest in 20 years.The figures showed that the number of people out of employment dropped 10,000 from the month of February.

A draft statement written for European finance ministers showed the goverments in the region are preparing for a one-year increase rescue aid to 940 billion euros to keep the debt crisis under control.

Meanwhile, the safe-haven commodity gold showed a drop of 1.6% as the yellow metal failed to breach the $1,700 mark.

As some of you may or may not know,gold and the US dollar have a very interesting connection. Both known as market safe-havens in times of uncertainty or economic difficulties, but the real connection is when the Greenback strengthens, the metal weakens and visa-verse.

Yesterday’s trading saw the dollar make some gains over some currency counterparts which had a negative affect on gold prices.

Protests in India against tax hikes on non-branded gold jewellery as well as gold imports have gone into their second week on Wednesday which is contributed to the drop in gold price occurring late Wednesday. India is the World’s top gold consumer, and the protests are reportedly frustrating imports during a time where the metal is at a high demand.

Aussie Dollar Falls Whilst Greenback Sees Gains

Posted: 28 Mar 2012 01:20 PM PDT

A drop in Chinese equities saw the Australian dollar fall to a new year low.

The Aussie Dollar dropped 0.7% to $1,0375 right back to the rate it was traded at the beginning of the year.China, the worlds second largest economy receives a large amount of exported commodities from Australia, and thus its no surprise that the Australian currency will take a hit with negative news coming out of China.

The Euro suffered losses against the US Dollar amid concerns that the Euro-zone leaders could possibly increase the size of the rescue fund.

Wednesday’s trading saw the U.S dollar making some hard fought gains over the Euro. The Euro fell to $1,3298 from $1,3331 during North American Trading late Tuesday, as euro-zone finance ministers apparently discussing a plan to boost the region’s firewall in order to contain the debt crisis.

The Greenback also showed its strength by trading up against 16 of its Major Counterparts due to concerns of slowdown in global growth, causing investors to turn to the safe-haven currency.

Thursday, March 29, 2012

FOREXYARD: Forex News Blog

Precious Metals Outlook For Today

Posted: 28 Mar 2012 02:48 AM PDT

Both Gold and Silver rallied during Monday’s trading after showing quite calm price movements last week.However, the two metals did not do much during yesterdays’ trading, and both Gold and Silver are currently traded down.

The price of gold dropped slightly on Tuesday by 0.03% to $1,687, whilst silver also experienced a slight drop of 0.41% to $32.62.

There are a number of news events and reports to be published to day which Metal traders should keep an eye on:

Euro Area M1, M3 Monthly Update: In the previous report, the annual growth rate for M3 rose to 2.5%; M1 increased to 2.0% and loans to private sector rose to 1.1%. If the M1 and M3 will continue to rise in the March report it could serve as another indicator for the rising inflation pressures in the Euro Area, and theres a possibility that it could affect next month's ECB's interest rate decision.

U.S Core Durable Goods: This monthly report will examine the changes in U.S. orders of durable goods in the manufacturing sector during February 2012. This report may indirectly present the changes in U.S. demand for commodities including crude oil. According to an estimate for January 2012, manufactured durable goods decreased to $206.1 billion.Non-defense new orders for capital goods also dropped to $79.5 billion. If negative results continue to be published , it could weaken the US dollar and therefore have a positive affect on both Gold and Silver prices.

Great Britain Updated GDP 4Q 2011: This will be the final projection of the fourth quarter real GDP of GB. In the previous estimate of the GDP for the 4Q2011 contracted by 0.2%.

To conclude, both Gold and Silver didn’t produce much activity yesterday following the gains made by the two metals in the past few business days. It comes as no surprise as the number of news items yesterday were lacking in number,so the bullion market was rather calm. Today however, the U.S core durable goods monthly report will be published which may have an affect on the Greenback which could get the prices of Gold and Silver moving.Its possible that the report will continue to show a drop in durable goods purchases which is an indication of a slowdown in the U.S economy. The EU M1,M3 report will also be published today mainly affecting the Eur/Usd Major pair, but pay attention to the Precious metals as they may also be affected as a result.Not a lot of movement is expected to occur from Gold and Silver today but we should see some slight gains over the next few business days.

Wednesday, March 28, 2012

FOREXYARD: Forex News Blog

Sharp Rises for Gold and Silver
Aussie Dollar Falls on Chinese Growth Concerns
Dollar Takes A Hit After Bernankes’ Speech

Sharp Rises for Gold and Silver

Posted: 27 Mar 2012 06:28 AM PDT

For the second consecutive business day, both Gold and Silver saw sharp gains, reducing the overall losses the two metals have experienced throughout March.

The key report that may have been responsible for the sharp gains in the bullion market was Fed Chairman Ben Bernanke’s Speech on the labour market. Currently Gold and Silver prices are trading up.

There are certain news events coming up today that could possibly have an effect on the bullion market:

U.S Consumer Confidence: According to the recent report, the consumer confidence index increased in February compared with January’s result. The current expectations are that this index could possibly change direction and decline in March despite the U.S. economy's signs of progress. this report might affect the direction of the US dollar and perhaps the bullion market as a result.

Bernanke Speech: The Chairman of the Federal Reserve will give another speech this week. The speech is part of a four piece lecture. The speech will be referred to as "The Federal Reserve and the Financial Crisis" Part 3″.

To conclude, both Gold and Silver prices showed resistance in the last couple of trading days as the two metals rallied. The recent speech of Fed Chairman Ben Bernanke could linger in the markets and possibly continue having an impact on the bullion market.Due to the metal’s recent gains, we could see investors leaning towards the Gold and Silver market which as a result, would push the prices up.

Traders should keep a close eye on the U.S Consumer Confidence Report, as there is a possibility that it may have an affect on the Greenback, and put pressure on the two metals

Aussie Dollar Falls on Chinese Growth Concerns

Posted: 27 Mar 2012 05:38 AM PDT

The Australian Dollar weakened against all of its 16 Major counterparts due to concerns over the pace at which China’s economy will grow, reducing demand for smaller nation’s commodities.In other words, a slow down in China’s economic growth will have a negative impact on Australia’s Currency.

The Australian and New Zealand Dollars were poised for their first monthly losses this year as reports and figures from China showed that earnings dropped in the nation’s industrial companies.It is possible that the Aussie and Kiwi Dollar may experience some difficulty if news out of China continues at this negative rate.

News involving China will always have a big impact on both the Aussie and Kiwi Dollar as China is a very important trading partner for the two nations.

Many traders are anticipating China’s PMI for manufacturing which is set to be released on the 1st April 2012.
The great nation is Australia’s largest overseas market whilst China also holds the title as New Zealand’s second biggest export destination.

Despite the recent fall against its major currency rivals, both the Aussie and Kiwi Dollar are set for their second consecutive quarterly gains over the Greenback.The Aussie Dollar has added 3 percent this year whilst the Kiwi has risen 5.7 percent.

The Australian Dollar is a very profitable currency to trade due to its volatility.However, the nation is very dependent on China and therefore its important for traders to keep a close eye on significant news coming out of China as it will have a direct affect on the Aussie.