By FXEmpire.com
Analysis and Recommendations:
Gold is trading at 1557.35 drifting lower below to fall as low $1550 an ounce, as the Euro sinks sharply against the US dollar. Ongoing political chaos in Greece raised concerns that the crisis will spill over to other debt laden European economies threatening the very existence of the Euro and dragging it down to four month lows. Euro zone finance ministers dismissed the talk of Greece leaving the Euro zone in their yesterday’s meeting also pressured the currency. However lower prices triggered strong demand for physical gold especially from Asian countries but as per reports gold refiners are struggling to meet their orders on a sudden surge in demand.
While the broad sentiments prevailing in the market continue to be bearish, commodities and shares were seen rising following a rebound in euro. Recovery in Euro from a four month low after a surprisingly strong German GDP data took the pressure off the market and slightly lifted the sentiments. German economy grew 0.5% in the first quarter against the expectation of 0.1 per cent. Euro Zone GDP data indicated that the region avoided recession though the economy continued to remain fragile. However, the overall sentiments were feeble on deepening worries over euro zone crisis and political uncertainty in Greece. Spot gold was off its four and a half month low as continuing global economic uncertainty boosted the yellow metal’s safe haven appeal.
US data today was mixed as retail sales came in just under forecast and the Empire Mfg Index soared. US eco data was market neutral overall.
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 Reports May 15, 2012 actual v. forecast
|
EUR |
French CPI (MoM) |
0.1% |
0.3% |
0.8% |
|
EUR |
French GDP (QoQ) |
0.0% |
0.0% |
0.1% |
|
EUR |
German GDP (QoQ) |
0.5% |
0.1% |
-0.2% |
|
EUR |
German GDP (YoY) |
1.7% |
0.8% |
1.5% |
|
EUR |
French Non-Farm Payrolls (QoQ) |
0.1% |
-0.2% |
-0.1% |
|
GBP |
Trade Balance |
-8.6B |
-8.4B |
-8.6B |
|
EUR |
GDP (QoQ) |
0.0% |
-0.2% |
-0.3% |
|
EUR |
German ZEW Economic Sentiment |
10.8 |
19.0 |
23.4 |
|
EUR |
ZEW Economic Sentiment |
-2.4 |
11.7 |
13.1 |
|
USD |
Core CPI (MoM) |
0.2% |
0.2% |
0.2% |
|
USD |
Core Retail Sales (MoM) |
0.1% |
0.2% |
0.8% |
|
USD |
CPI (MoM) |
0.0% |
0.1% |
0.3% |
|
USD |
Retail Sales (MoM) |
0.1% |
0.2% |
0.7% |
|
USD |
NY Empire State MFG Index |
17.1 |
8.5 |
6.6 |
|
USD |
CPI (YoY) |
2.3% |
2.3% |
2.7% |
|
USD |
Core CPI (YoY) |
2.3% |
2.3% |
2.3% |
|
USD |
TIC Net Long-Term Transactions |
36.2B |
19.4B |
10.1B |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
May 16 |
09:30 |
GBP |
1.0% |
1.1% |
|
|
09:30 |
GBP |
5.0K |
3.6K |
||
|
10:00 |
EUR |
2.6% |
2.6% |
||
|
10:00 |
EUR |
1.5% |
1.6% |
||
|
10:30 |
GBP |
||||
|
10:30 |
GBP |
||||
|
10:30 |
EUR |
1.770% |
|||
|
11:00 |
EUR |
14.00% |
|||
|
13:30 |
USD |
0.730M |
0.764M |
||
|
13:30 |
USD |
0.680M |
0.654M |
||
|
14:15 |
USD |
0.6% |
0.0% |
||
|
15:00 |
EUR |
||||
|
19:00 |
USD |
||||
|
May 17 |
13:30 |
USD |
365K |
367K |
|
|
13:30 |
USD |
3235K |
3229K |
||
|
15:00 |
USD |
10.0 |
8.5 |
Click here for updated Gold News.
Originally posted here
