Forex-Metal Daily Analysis -23/03/2012

The dollar rose against its competitors supported by many factors.

Asian and European trading sessions:

Euro: The euro fell against major currencies after the published report on the situation in industrial sector of euro area. In January the value of on industrial orders was declined more dramatically than it was expected and, therefore, reinforced market participants’ fears about the deteriorating situation in Euro zone. Also, the report on business activity in the service sectors in France, Germany and the euro zone as a whole in March, according to preliminary estimates was significantly below the forecasted values. The EUR / USD couple during the European session tested the area of ​​support to $ 1.3140.


US Dollar: The dollar rose against its competitors after the published today report on production index in China. The report signaled a decline. In details, the manufacturing PMI index from HSBC in China was significantly worse than the previous one (48.1 against 49.6 in March to February). Also, the support for the dollar was provided by the falling of World’s equity and future markets.

Japanese Yen: After Japan announced an unexpectedly growth in trade balance of $ 32.9 billion yen in February after the previous four consecutive months of trade deficits the yen rose against its competitors. The USD / JPY couple fell in the area of ​​Y82.65.


New Zealand dollar: The GDP of New Zealand rose by only 0.3%, taking into account the correction for seasonal variations, in the 4th quarter, less than it was forecasted. On this news the New Zealand dollar fell against its competitors.

American trading session:

US Dollar: The dollar strengthened after the positive report on in the U.S., which confirmed the recovering of the U.S. labor market. The number of Jobless Claims last week reached a minimum of 4 years, the value of 348K.


World oil prices down in spite of the publication of statistics on the strong U.S. labor market. May’s futures  of Gold fell to 104.47 dollars per barrel on the NYMEX today.

Gold: The price of gold fell to its lowest level, to $ 1627.5 an ounce due to the strong dollar. There were also two more reasons for that decline. First, the demand for Gold in Asia declined because of the reports of slowing manufacturing activity in China in March. Second, the Indian jewelers did not work this past weekend due to protest against the increase of import taxes on precious metals. April futures price of gold fell today to the level of $ 1627.5 an ounce.