Forex-Metal Daily Analysis -31/08/2012

Market review for 30.08.12: The market is waiting for tomorrow’s speech of Mr. Bernanke.


Asian and European trading sessions:

Euro: The support that the euro received during the Asian session was provided by the statements of the President of the European Central Bank Mr. Mario Draghi who justified his believe in the ECB’s “exceptional measures” within the overall obligation to maintain price stability in the euro area. Also, the single currency rose against major currencies amid falling yield in today’s auction for bonds of Italy. Italy sold a ten-year treasury bills in the amount of 4.0 billion euros with a target of 3.0-4.0 billion and the maximum yield of securities was 5.82 %, against 5.96 % in previous placement. The EUR / USD pair rose to a high of $ 1.2570 during the European session.

U.S. Dollar: The dollar fell slightly against its competitors ahead of today’s publication of macroeconomic data from the U.S. as well as on pending speech of the Federal Reserve Chairman Mr. Ben Bernanke at Jackson Hole tomorrow, where he will or will not give a signal about starting new measures to stimulate the U.S. economy.

British Pound: The pound rose against most currencies after the report of Mortgage Approvals showed that the number of approved applications for mortgage loans increased in July thus indicated a recovery from the recession in June. In details, the records showed an increase of the number to the level of 47,3K. The GBP / USD pair rose sharply to a level of $1.5841 with all potential to grow higher than the high of previous day.

Australian dollar: The number of approved applications for housing construction fell in July by -17.3%., as it was revealed by the government report of Building Approvals. The Australian dollar fell against most major currencies after publication of the report.

American trading session:

U.S. Dollar: The data on Personal spending, which rose in July for the first time in three months by 0.4% supported the dollar during the session.

Canadian dollar: The currency continued to decline also today against its major competitors after yesterday’s report on U.S. GDP as well as positive today’s data showed that the U.S. economy, the Canadian largest trading partner, increased by more than the initial estimate.

Gold: The September futures price of gold on the COMEX fell to 1651.7 dollars per ounce and tested the yesterday’s low. The gold investors are nervously waiting for tomorrow’s speech of Mr. Bernanke. For overall situation, the investments in Gold exchange-traded funds showed the biggest since November 2011monthly inflow by rising sharply this month to almost 38 tons.

Oil: The oil WTI prices fell below the yesterday’s lows, to the level of $ 93.94 per barrel.