Breakthrough Above Parity

(Reuters) - Gold steadied on Wednesday after rising to its strongest in more than two weeks as concerns about Greece's ability to implement an unpopular bailout deal balanced gains triggered by the actual agreement. Spot gold rose to $1,759.84 an ounce in early trade, its highest since February 3, before steadying at $1,757.80 by 0716 GMT. Slower factory activity in China also helped erase some of the early gains. U.S. gold bounced from lows and added $1.20 to $1,759.70 an ounce. Cash gold staged its biggest one-day rise in two weeks on Tuesday, climbing 1.5 percent along with riskier assets after euro zone finance ministers gave the greenlight to a 130-billion-euro bailout for Greece. The euphoria faded quickly, however, as worries about implementation resurfaced, and data pointing to ...

www.sunbirdfx.com Last trading day in Wall Street has been characterized by much volatility. The leading indices have changed direction several times while it seems that the macro-data that reflected a rise of 4% in the orders of sustainable merchandises, as opposed to a prediction of only 2%, has tipped the scale towards a rally at the last minutes of the trade. Other news that have contributed to volatility are fears from negative developments related to the debt crisis in Europe, as opposed to cautious optimism from the investors following the speech of the President of the Federal Bank in the USA, Ben Barnanke, as well as the probability of declaration of a third quantity easing plan. In France, the Prime Minister Francois Fillon has announced a vast package of spending cuts in order ...

www.sunbirdfx.com Yesterday, the US stock markets have closed on green territory, while all the indices have been rising; these rises may be attributed to public's faith in the banks and to the "fear dimension" that went down 14%, under 40 points. We will remind that during the last four weeks, the stock market has altogether lost about 16%. Next Friday, the Fed Chairman Bernanke will pronounce a speech in Jackson Hole, Wyoming, and the investors will be bracing for the third quantity easing through the acquisition of bonds as he did last year. in the macro scene, the Homes Sale Index has decreased in 0.7% in July to K298 in yearly pace, while economists had expected an increase to K313. The bad news coming from Europe do not stop as a sharp decline was shown in the German economy in ...

FX Strategy Weekly Market Outlook => Pro-risk currencies unfazed by EU periphery troubles; focus on G20 => BoE QIR to test sterling resilience A quiet data and event calendar means the dust should settle somewhat over global asset markets over the coming week, allowing investors to catch their breath and consider what will influence financial markets over the closing weeks of 2010. Risk appetite received a shot in the arm from the $600bln Fed Treasury purchase programme and this largely managed to neutralise escalating fears over the euro zone periphery where bond and CDS spreads hit new record highs. Though long high yield and commodity currency positions already look stretched technically, attractive yield differentials and QE flows from US into non-US assets are likely to spur ...