By FXEmpire.com
Analysis and Recommendations:
Silver future prices turned lower to trade at 28.318 despite the positive sentiment of Chinese monetary easing walloped by the European woes. Asian equities therefore are trading at a weak note and would have mounted pressure on the metal. The Euro slipped on anticipation of the anti-bailout party meeting in Greece that has raised the queries about Greece exit. Hence, the equities market may face the mayhem and that will be a troublesome factor for silver. As discussed in gold’s outlook (see fundamental analysis for gold), controversies regarding growth and austerity will be the driving factor for the Euro. We expect Euro to continue weakness and thereby silver to follow the same. Hence, we recommend staying short for the metal.
The Gold/Silver current ratio as expected, has improved to 54.82 from 54.68 on Friday. Today as well we expect the ratio to move up as silver is more prone to a downside at a faster pace than gold. We therefore recommend buying gold and selling silver as a strategy to reap the benefit of an ascending ratio.
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 up to the data analysis and information in our weekly reports, which cover the current week and are published by Sunday before the new week begins.
Economic Data May 14, 2012 actual v. forecast
|
May 14 |
02:30 |
AUD |
Home Loans (MoM) |
0.3% |
-2.0% |
-2.5% |
|
08:15 |
CHF |
PPI (MoM) |
-0.1% |
0.3% |
0.3% |
|
|
10:00 |
EUR |
Industrial Production (MoM) |
-0.3% |
0.4% |
0.8% |
|
|
10:10 |
EUR |
Italian 10-Year BTP Auction |
5.66% |
5.84% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
May 15 |
06:30 |
EUR |
French CPI (MoM) |
0.8% |
|
07:45 |
EUR |
French Non-Farm Payrolls (QoQ) |
-0.1% |
|
|
09:30 |
GBP |
Trade Balance |
-8.8B |
|
|
May 16 |
09:30 |
GBP |
Average Earnings Index +Bonus |
1.1% |
|
09:30 |
GBP |
Claimant Count Change |
3.6K |
|
|
10:00 |
EUR |
CPI (YoY) |
2.6% |
2.6% |
|
10:00 |
EUR |
Core CPI (YoY) |
1.6% |
|
|
11:00 |
EUR |
Portuguese Unemployment Rate |
14.00% |
Government Bond Auctions (this week)
Date Time Country
May 15 09:30 Belgium
May 15 09:30 UK
May 16 08:50 France
May 16 09:10 Sweden
May 16 09:30 Germany
May 16 09:50 France
Click here a current Silver Chart.
Originally posted here
