Forex-Metal Daily Analysis -30/03/2012

The growth yield of Italian and Spanish government bonds might be a reason for a new round of debt crisis in the Euro region.


Asian and European trading sessions:

Euro: The EUR / USD pair traded in a range of $ 1.3305 -$ 1.3346 at the Asian session. On the backdrop of increasing concerns, which were triggered by the growth yield of Italian and Spanish government bonds, the Euro fell against other major currencies. The situation with the Italian and Spanish government bonds might be a reason for a new round of debt crisis in the Euro region. The EUR / USD couple fell into the region of $ 1.3260, where it found strong support. Even the results of the auction on placement Italy’s government bonds, whose results were better than similar previous ones; in particular, Italy attracted 5.75 billion euros, against the planned volume 4-5,75 billion euros.

British Pound: The GBP / USD pair was able to recover from yesterday’s fall into the region of $1.5924 at Asian session. However, the new piece of negative statistics pressured the trading dynamics of the pound today. Today, the market players disappointed by the result of the volume of net lending for individuals and approved applications for mortgage loans. Both reports were worse than expected in February. The GBP / USD pair dropped to $ 1.5863 area.

Japanese Yen: The yen was strong today amid continuing global downturn in Asian stock markets. Also, the reasons for Japan’s currency growth against the dollar were speculations that Japanese companies will repatriate their profits abroad, until the end of the fiscal year on March 31. The USD / JPY fell to the area of Y82.08 by the end the European trading session.

Australian Dollar: The Australian dollar continued its downtrend falling today below 200 Moving average on concerns about slowdown in China’s economy, which will constrain the demand for the Australian export in a future.

American trading session:

Euro: The euro was pressured by the result of the report on index of Industrial confidence in the region, which unexpectedly fell in March to the -7.2 points. Also, the index of consumer and business confidence in the euro-zone economy (ESI) in March decreased to 94.4 points vs. forecasted 94.5 points.

Oil: The WTI oil fell to 102.96 dollars a barrel on the New York Mercantile Exchange, its lowest level in nearly six weeks against the backdrop of falling stock markets and the announcement of the Government of France about the nearest completion of agreement on the ” opening ” of emergency supplies to contain rising of Oil prices.

Gold: April futures price of gold on COMEX fell today to a $1661 per troy ounce recording $ 1644.3 level in intraday trading.