By FXEmpire.com
Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of silver (eg. 30000 grams) at a predetermined price on a future delivery date.
Some Facts about Silver
Silver is a soft, shiny and heavy metallic element with a brilliant white luster. A very ductile and malleable metal, its thermal and electrical conductivity is the highest of all known metals.
Besides being used as a store of value, other main uses of silver include applications in areas such as electronics, photography and as antiseptics.
Consumers and producers of silver can manage silver price risk by purchasing and selling silver futures. Silver producers can employ a short hedge to lock in a selling price for the silver they produce while businesses that require silver can utilize a long hedge to secure a purchase price for the commodity they need.
Silver futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable silver price movement. Speculators buy silver futures when they believe that silver prices will go up. Conversely, they will sell silver futures when they think that silver prices will fall.
Weekly Analysis and Recommendations:
Silver closed the week at 27.267 after beginning at 27.372 as it bounced around all week as the metals pack looked good and bad. China’s growth pressured the markets, but the weak dollar supported industrial metals. Gold and silver benefited from moves to precious metals until Friday when investors turned back to the USD as the euro tumbled to end the week below 1.22.
|
Date |
Open |
High |
Low |
Change % |
|
|
Jul 20, 2012 |
27.267 |
27.248 |
27.395 |
26.773 |
0.01% |
|
Jul 19, 2012 |
27.265 |
27.125 |
27.570 |
27.115 |
0.52% |
|
Jul 18, 2012 |
27.123 |
27.283 |
27.340 |
26.865 |
-0.61% |
|
Jul 17, 2012 |
27.290 |
27.308 |
27.595 |
26.767 |
-0.03% |
|
Jul 16, 2012 |
27.298 |
27.372 |
27.390 |
26.865 |
-0.29% |
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Major Economic Events for the week of July 16 – 20 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul 16 |
EUR |
Core CPI y/y |
1.6% |
1.6% |
1.6% |
|
USD |
Core Retail Sales m/m |
-0.4% |
0.1% |
-0.4% |
|
|
USD |
Empire State Manufacturing Index |
7.4 |
3.9 |
2.3 |
|
|
Jul 17 |
GBP |
CPI y/y |
2.4% |
2.8% |
2.8% |
|
GBP |
RPI y/y |
2.8% |
3.0% |
3.1% |
|
|
EUR |
German ZEW Economic Sentiment |
-19.6 |
-17.3 |
-16.9 |
|
|
USD |
Core CPI m/m |
0.2% |
0.2% |
0.2% |
|
|
USD |
TIC Long-Term Purchases |
55.0B |
45.7B |
27.2B |
|
|
USD |
Capacity Utilization Rate |
78.9% |
79.2% |
78.7% |
|
|
USD |
Industrial Production m/m |
0.4% |
0.4% |
-0.2% |
|
|
Jul 18 |
GBP |
Claimant Count Change |
6.1K |
6.2K |
6.9K |
|
GBP |
Unemployment Rate |
8.1% |
8.2% |
8.2% |
|
|
CHF |
ZEW Economic Expectations |
-42.5 |
-43.4 |
||
|
USD |
Building Permits |
0.76M |
0.77M |
0.78M |
|
|
USD |
Housing Starts |
0.76M |
0.74M |
0.71M |
|
|
USD |
Crude Oil Inventories |
-0.8M |
0.5M |
-4.7M |
|
|
Jul 19 |
CHF |
Trade Balance |
2.25B |
2.21B |
2.52B |
|
EUR |
Current Account |
10.9B |
5.3B |
5.5B |
|
|
GBP |
Retail Sales m/m |
0.1% |
0.6% |
1.5% |
|
|
USD |
Unemployment Claims |
386K |
367K |
352K |
|
|
USD |
Existing Home Sales |
4.37M |
4.64M |
4.62M |
|
|
USD |
Philly Fed Manufacturing Index |
-12.9 |
-7.9 |
-16.6 |
|
|
Jul 20 |
EUR |
German PPI m/m |
-0.4% |
-0.2% |
-0.3% |
|
GBP |
Public Sector Net Borrowing |
12.1B |
11.8B |
16.1B |
Historical:
Highest: 49.813 on Apr 25, 2011
Average: 27.592 over this period.
Lowest: 14.655 on Feb 05, 2010
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 24 |
7:00 |
EUR |
French Flash Manufacturing PMI |
45.2 |
|
7:00 |
EUR |
French Flash Services PMI |
47.9 |
|
|
7:30 |
EUR |
German Flash Manufacturing PMI |
45.0 |
|
|
7:30 |
EUR |
German Flash Services PMI |
49.9 |
|
|
8:00 |
EUR |
Flash Manufacturing PMI |
45.1 |
|
|
8:30 |
GBP |
BBA Mortgage Approvals |
30.2K |
|
|
9:00 |
EUR |
Flash Services PMI |
47.1 |
|
|
13:00 |
USD |
Flash Manufacturing PMI |
52.5 |
|
|
Jul 25 |
8:00 |
EUR |
German Ifo Business Climate |
105.3 |
|
8:30 |
GBP |
Prelim GDP q/q |
-0.3% |
|
|
10:00 |
GBP |
CBI Industrial Order Expectations |
-11 |
|
|
13:00 |
EUR |
Belgium NBB Business Climate |
-13.2 |
|
|
14:00 |
USD |
New Home Sales |
369K |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
Jul 26 |
6:00 |
EUR |
GfK German Consumer Climate |
5.8 |
|
8:00 |
EUR |
M3 Money Supply y/y |
2.9% |
|
|
12:30 |
USD |
Core Durable Goods Orders m/m |
0.7% |
|
|
12:30 |
USD |
Unemployment Claims |
||
|
14:00 |
USD |
Pending Home Sales m/m |
5.9% |
|
|
Jul 27 |
27th-31st |
GBP |
Nationwide HPI m/m |
-0.6% |
|
All Day |
EUR |
German Prelim CPI m/m |
-0.1% |
|
|
7:00 |
CHF |
KOF Economic Barometer |
1.16 |
|
|
12:30 |
USD |
Advance GDP q/q |
1.9% |
|
|
13:55 |
USD |
Revised UoM Consumer Sentiment |
72.0 |
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Originally posted here
