By FXEmpire.com
Analysis and Recommendations:
Gold is trading at 1593.05, keeping steady near $1590 an ounce weighed by a strong dollar. Worries over global economic growth shifted investor’s sentiments into safer US currency rather than the Euro and bullion. The dollar index held firm and is hovering near a one month high, while the Euro edged lower to a two year low. The Euro fell yesterday after the Euro zone leaders’ meeting failed to offer any positive signals for reviving the debt laden European economy. At the same time, Chinese imports and export slowed in June, indicating that domestic demand is cooling off quickly, highlighting concerns about the economy. Meanwhile, as per CFTC data for the week ended July 3, speculators raised their bullish bets in US gold futures and options to the highest level in two months. However, physical demand for gold from Asia remains sluggish as choppy price moves kept investors away from taking fresh positions.
Markets were seen in jeopardy after Chinese trade data reaffirmed weakening domestic demand in the country, raising fresh concerns over quest for raw materials from the leading consumer. However, encouragement over Europe’s fresh lifeline to Spain limited the distress for investors. Looking into the evening session, no major data are slated for release from the US and could witness sluggish volume as seen yesterday. After the rate cut action by key central banks across the globe last week, financial markets would be keenly watching for the US FOMC minutes on Wednesday. An indication on possible quantitative easing during the FOMC minutes would be highly cheered. The week could pack a punch with key economic data from China – the major commodity consumer, in terms of Industrial production, GDP and retail sales. Any uncanny outcome of these data could call for a ground reality check that a hard landing could become inevitable for the Chinese economy.
The week in particular is light on economic data from the US and markets could be driven by events evolving in Europe and China
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.
Economic Data July 10, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 10 |
GBP |
RICS House Price Balance |
-22% |
-16% |
-17% |
|
AUD |
NAB Business Confidence |
-3 |
-2 |
||
|
CNY |
Chinese Trade Balance |
31.73B |
21.00B |
18.70B |
|
|
DKK |
Danish CPI (YoY) |
2.20% |
2.20% |
2.10% |
|
|
NOK |
Norwegian Core Inflation (MoM) |
-0.30% |
0.10% |
0.40% |
|
|
NOK |
Norwegian CPI (MoM) |
-0.50% |
-0.10% |
0.00% |
|
|
GBP |
Industrial Production (MoM) |
1.0% |
-0.2% |
-0.4% |
|
|
GBP |
Manufacturing Production (MoM) |
1.2% |
0.1% |
-0.8% |
|
|
GBP |
Trade Balance |
-8.4B |
-9.0B |
-9.7B |
|
|
GBP |
Industrial Production (YoY) |
-1.6% |
-2.1% |
-2.0% |
|
|
Housing Starts |
222.7K |
205.0K |
217.4K |
||
|
GBP |
NIESR GDP Estimate |
-0.2% |
0.1% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 11 |
12:30 |
USD |
-50.1B |
|
|
14:30 |
USD |
-4.3M |
||
|
Jul 12 |
9:00 |
EUR |
-0.8% |
|
|
12:30 |
USD |
|||
|
12:30 |
USD |
-1.0% |
||
|
18:00 |
USD |
-124.6B |
||
|
7:15 |
CHF |
-0.2% |
||
|
Jul 13 |
12:30 |
USD |
-1.0% |
|
|
13:55 |
USD |
73.2 |
Click here a current Gold Chart.
Originally posted here
