Forex-Metal Daily Analysis -13/06/2012

The Spanish bonds yields’ grew to their maximum level of 6, 728 %.


Asian and European trading sessions:

U.S. Dollar: The speech of the President of the Federal Reserve Bank of Chicago, Mr. Charles Evans put some pressure on the currency and Dollar, as the result, fell against major currencies. Mr. Evans said that he will support a wide range of measures for creating an increase in the number of jobs in the US country. He also stated that: “More asset purchases would be helpful. More purchases of mortgage-backed securities – that’s good”, meaning by that that he would welcome almost any adaptive policy. The market sentiment after this speech turned again towards the expectations for the new round of quantitative easing in the U.S.

British Pound: The GBP / USD pair during the Asian session was trading between $ 1.5464 -$ 1.5495 levels. Although, the report on Industrial Production in the UK rose did not match the analysts expectations the greenback grew against its competitors. The Industrial Production in the UK fell to 0.0 % on monthly bases versus forecasted growth to 0. 1%. The GBP / USD couple grew up to $1.5544area at the European trading session.

Japanese Yen: Today in Asian trading after the International Monetary Fund had revealed its readiness to except Japan’s attempts to weaken the national currency the Yen stopped its growth and pulled back falling against the major currencies. In details, accordingly the published information, the First Deputy Managing Director of the Foundation, Mr. Lipton said: “We would understand Japans intervention in foreign exchange market.” As the result, the Yen fell against the Dollar to the Y79.70 level during the European session. The Bank of Japan on June 14 will begin a two-day meeting where its representatives will discuss the programs for easing of monetary policy in the country.

Australian and New Zealand dollar: After the May’s index of Housing Prices in New Zealand showed a growth, the Australian and New Zealand dollars pulled back and won back some of the yesterday’s fall.

Swiss Franc: Supported the franc today the publication of some economic forecasts from the State Secretariat for Economic Affairs (SECO). According to the published reports, the forecast of growth of the Switzerland GDP went up to +1.4% in the in 2012 versus the previously forecasted change of +0.8% yet forecasted GDP growth for 2013 by +1.5% a with previously expected by 1,8%.

American trading session:

Euro: The euro fell against almost all major currencies due to the following factors: first, the Spanish bonds yields’ grew to their maximum level of 6, 728 % – the highest level since 29 November 2011, second, 
the Fitch Ratings agency informed that Spain will not be able to reach the target level of fiscal deficit. All these negative factors increased again investors’ fears of worsening debt crisis in Europe. In addition, the Fitch Ratings agency downgraded the rating of 18 Spanish banks. The information from Cyprus which would also need a financial assistance from the EU also indicated the destabilization in the Euro region and increased pressure on the currency. The EUR/USD pair fell into the $1.2443 area.

Gold: The June Gold futures on the COMEX grew today to 1617.35 dollars per troy ounce against the backdrop of transferring funds by investors from risky assets towards the commodities due to concerns that the financial assistance provided for the Spain’s banking system would not be able to stop the spread of the debt crisis in the euro zone.

Oil: The Oil rose today on assumptions of reduction in U.S. oil inventories. The cost of the July futures on U.S. light crude oil WTI rose to $ 83.72 a barrel on the NYMEX today after falling to $ 81.10, its lowest intraday level since the beginning of October.


Technical analysis for 13/06


The pair is trading between 1.26897 and 1.23907. 
Resistance: 1.25690, 1.26897, 1.28630 
Support: 1.23907, 1.21813, 1.19332 
The pair’s support is 1.54842, resistance 1.56722. 
Resistance: 1.56722, 1.58543, 1.60322 
Support: 1.54842, 1.53482, 1.52063 
The pair has tested channel line at 0.96220. 
Resistance: 0.96220, 0.97427, 0.98512 
Support: 0.95074, 0.93949, 0.93069 
The pair is testing Moving Average (200) at 79.707. If this level is broken the pair will rise to 80.438. 
Resistance: 79.707, 80.438, 81.399 
Support: 79.070, 78.345, 77.539 
The pair has broken 0.99207 and aiming to 1.00067. 
Resistance: 1.00067, 1.00907, 1.01744 
Support: 0.99207, 0.98436, 0.97423