Action In This Corner Of The Market

Forex News and Events: Friday’s trading session was mostly uneventful with all the focus shifted to Facebook’s IPO. Many markets that had been freefalling these last two weeks caught a breather, with gold, silver, and the EUR gaining 1.12%, 2.57% and 0.63% respectively against the USD. The reversal has been attributed to a weak Philly Fed reading on economic activity in a sign that the world’s reserve currency is riskier than panicked markets are pricing. The weak number raised speculation over a new round of interventions from the part of the Fed in order to boost its economy. WTI however, was not able to profit from this reversal as it dropped to a six-month low before closing at 91.33. A 22-year high in inventory levels for the US could explain the decoupling of oil from the rest of ...

Gold prices rose more than 1 percent on Friday, building on the previous session's hefty gains, as a recovery in the euro prompted some buying of the precious metal, with shorts covering amid expectations prices could rise further. Gold posted its biggest one-day gain since January 25 on Thursday, recovering some ground lost during its longest run of losses in five months. Its reversal has put it on track to end the week 0.4 percent higher. Spot gold was up 1 percent at $1,589.16 an ounce at 1148 GMT, having earlier touched a high of $1,594.10, while U.S. gold futures for June delivery were up $14.40 an ounce at $1,589.30. The euro recovered from a four-month lows against the dollar to move into positive territory, taking some pressure off gold, though concerns over a Greek euro exit ...

With the Bank of England rate decision is just around the corner, the British Royal Currency declined against the low yielding U.S. dollar, on mixed sentiment and thoughts regarding what the Bank of England might do now as the royal economy officially slipped into recession and as inflation is still skyrocketing as well. The Monetary Policy Committee is projected to leave rates unchanged at 0.5% and the asset purchases program steady at 325 billion pound as the bank still attempts to balance between rising inflation and weakening growth, noting that further cut in the rates is highly unexpected this meeting or this year in general as price pressures prevents policy makers from taking further actions in favor of growth. The sterling pound declines on slight possibility some of the nine ...

As this week comes to an end, markets are standing still awaiting the performance of the labor market in the world's largest economy for more details regarding the pace of recovery; however, markets retreated slightly against the low yielding U.S. dollar after the downbeat performance of the European services sectors which contracted significantly in April, raising fears of recession and deep contraction. Investors are demanding more of the low yielding U.S. dollar in order to avert as much risk as possible, especially as this week comes to an end, where investors remain in the market awaiting the U.S. jobs report; however, at the same time they tend to avert risk therefore holding the U.S. dollar is the best choice, especially with speculation the jobs report will show improvement in the ...

Another week is to end today, while markets are fluctuating heavily with the start of the final session, where markets are waiting services data from the euro zone for more confirmations whether the region is slipping into another phase of recession, ahead of the closely watched jobs report from the world's largest economy. The European common currency as seen yesterday was able to recover most of the losses incurred earlier, where after the European Central Bank rate decision and Draghi's press conference the euro rebounded supported by the downbeat services data from the world's largest economy, which sent the dollar south supporting high yielding currencies to rebound. Mario Draghi, the European Central Bank President, reassured yesterday that downside risks to growth remain evident, ...

The European Central Bank Governing Council opted to maintain the benchmark interest rates at 1.0%, the marginal lending facility at 1.75% and the deposit facility at 0.25%, where the bank was not projected to cut rates below 1.0% now as the bank is still waiting more economic indicators to reveal the real current situation in the euro-area region. The European Central Bank Governing Council most probably left the benchmark interest rate unchanged for the fifth consecutive time as the bank attempts to control inflation and boost growth at the same time, however the question to be asked here is what next for Europe and the euro-area region, where the European Central Bank must provide further easing in the coming period in case the situation remained critical in Spain, the fourth largest ...

The countdown has finally come to an end, where markets have been waiting this busy session since the start of this week, and now eyes will be focused on the European Central Bank rate decision, Draghi press conference, the Spanish bond sale and finally the financial results of several major firms across Europe. The European common currency declined sharply yesterday after the flow of downbeat fundamentals from Europe and the world's largest economy, where the downbeat manufacturing data and unemployment from Europe triggered sharp pessimism that spread across markets, dampening demand for high yielding currencies including the euro, the sterling pound and the Australian dollar. The euro continues the downside movement today ahead of the critical events awaited mainly from Spain, where ...

Forex Morning Briefing : Key event risk ahead of FOMC What’s new: Asia: US equities end in positive, Asia mixed so far United States: FOMC rates on hold; outlook improves FED: Bernanke opts to remain cautious in his interpretation New Zealand: RBNZ on hold takes a more dovish stance Rates in Asia and Indices: EUR/USD 1.3217 1.3238 0.12 % USD/CHF 0.9076 0.9093 0.14 % GBP/USD 1.6159 1.6195 0.16 % USD/JPY 81.12 81.42 0.14 % EUR/CHF 1.20149 1.2019 0.00 % EUR/JPY 107.27 107.66 0.02 % Dow Jones 12993.6 13105.7 0.68 % Nasdaq 2691.12 2710.87 2.68 % S&P 500 1372.11 1391.37 1.36 % Nikkei 225 9531.03 9630.97 0.00 % Shanghai 2393.265 2414.753 -0.14 % Gold spot 1642 1649.93 0. ...

Fundamental Analysis EUR "Today's dismal PMI figures clearly indicate that the euro zone economy remains in dire straits" - Martin Van Vliet, senior economist at ING The euro zone’s manufacturing contracted in April, a sign the economy is far from out of the woods. The purchasing managers index declined to 47.9 from 49.2 in March, Markit data showed on Monday. Reading below 50.0 indicates industry contraction. USD "There’s more work to be done in Europe" - Mark Bronzo, a fund manager at Guggenheim Investments U.S. stocks declined after data showed that manufacturing contracted in the euro zone. GBP "Political developments in Europe are weighing on indices" - Rupert Osborne, a futures dealer at IG Index U.K. stocks declined sharply on Monday after manufacturing in the single currency ...