Forex-Metal Daily Analysis -25/05/2012

The UK’s GDP decreased in the 1st quarter of 2012.


Asian and European trading sessions:

Euro: The EU summit which was held on Wednesday, May 23in Brussels ended up in disagreement between Germany and France around the introduction of Eurobonds.The EUR / USD held a $1.2570level during the Asian session. At the European session the couple fell on the background of weak European macro-economic data published today. The Germany’s IFO Business Climate index which in May dropped to 106.9 points versus the forecasted 109.9 triggered sales in the euro currency. The indexes of business activity in Manufacturing and Service sectors in France, Germany and the euro zone as a whole were also worse than excepted. The EUR / USD pair however pulled back to the highs of the day $ 1.2620 area.

U.S. Dollar: The U.S currency was in demand on today as well and remained on highs after yesterday’s explosive growth against most major currencies amid the growing demand for safe heaven currencies due to the worsening of the situation in Europe.

British Pound: The GBP / USD couple traded in the range of $ 1.5670-1.5700 during the Asian session. 
On the background of published macroeconomic statistics the currency fell against its main competitors. The revised UK’s GDP in the 1st quarter decreased to -0.3 % from -0.2% in q / q basis as it was reported by the UK’s National Statistics Office. Again, the expectations of market participants regarding the resumption of quantitative easing program increased. The GBP / USD couple showed the low of the European session at the $ 1.5637 area.

New Zealand dollar: After the report on business activity in the manufacturing industry of China, which was calculated by HSBC accordingly to the result of purchasing managers index, had showed decrease in May, the demand for the New Zealand dollar decreased as well. The preliminary index for May was 48.7 points versus 49.3 in April.

American trading session:

Swiss Franc: Amid speculations that the Central Bank may take measures to prevent investments in the country by increasing taxes on deposits, the Swiss franc weakened to its lowest level in two months against the Euro.

Gold: The Gold raised in price after three days decline. The cost of the June gold futures rose to the highs of $ 1578 per troy ounce on the COMEX today.

Oil: The cost of the July futures on U.S. light crude oil WTI rose to $ 91.52 per barrel on the NYMEX today on the background of positive statistics which came from the U.S. The demand for raw materials increased today and was supported by the investors’ optimism as well as the uncertainty surrounding Iran’s nuclear program.