By FXEmpire.com
Silver Fundamental Analysis April 17, 2012, Forecast
Analysis and Recommendations:
Silver traded lower by 0.4 percent at 31.328, taking cues from fall in gold prices coupled with downside in base metals pack. The white metal touched an intra-day low of $ 31.16/oz.
Strength in the US dollar index coupled with mixed sentiments in the global markets led base metals to trade lower.
Renewed worries over the Euro Zone debt crisis and not-so encouraging economic indicators from the World’s largest and the second largest economy kept the market in doldrums. Surge in Spanish bond yield reduced the investor’s risk appetite dragging down commodities and equities. Euro hit a one month low earlier today. Bullions declined with spot gold falling to a one week low, shedding more than one per cent. Base metal complex in Shanghai as well as in LME were in deep red with copper in Shanghai slipping more than two per cent. In LME, it hit a fresh three month low. Worries over Chinese demand and firmer dollar weighed on. Crude oil remained under pressure too from weak Chinese data, euro zone debt worries and ‘positive’ Iran talks. However, by afternoon bullions, base metals as well as crude oil were seen trimming the initial losses.
Economic Reports for April 16, 2012 actual v. forecast
|
GBP |
Rightmove House Price Index (MoM) |
2.9% |
1.6% |
|
|
JPY |
BoJ Governor Shirakawa Speaks |
|||
|
CHF |
PPI (MoM) |
0.3% |
0.5% |
0.8% |
|
USD |
Core Retail Sales (MoM) |
0.8% |
0.6% |
0.9% |
|
Foreign Securities Purchases |
12.50B |
7.23B |
-4.28B |
|
|
USD |
Retail Sales (MoM) |
0.8% |
0.3% |
1.0% |
|
USD |
NY Empire State Manufacturing Index |
6.6 |
18.0 |
20.2 |
|
USD |
TIC Net Long-Term Transactions |
10.1B |
41.3B |
102.4B |
Economic Events scheduled for April 17, 2012 that affect the European and American Markets
09:30 GBP CPI (YoY) 3.4%
The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
10:00 EUR CPI (YoY) 2.6% 2.6%
The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
10:00 EUR German ZEW Economic Sentiment 19.0 22.3
The German Zentrum f?r Europ?ische Wirtschaftsforschung (ZEW) Economic Sentiment Index gauges the six-month economic outlook. A level above zero indicates optimism; below indicates pessimism. The reading is compiled from a survey of about 350 German institutional investors and analysts.
10:00 EUR Core CPI (YoY) 1.5%
The Core Consumer Price Index (CPI) measures the change in the price of goods and services purchased by consumers, excluding food, energy, alcohol, and tobacco. The data has a relatively mild impact because overall CPI is the European Central Bank’s mandated inflation target.
13:30 USD Building Permits 0.71M 0.71M
Building Permits measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.
13:30 USD Housing Starts 0.70M 0.70M
Housing starts measures the change in the annualized number of new residential buildings that began construction during the reported month. It is a leading indicator of strength in the housing sector.
14:15 USD Industrial Production (MoM) 0.5%
Industrial Production measures the change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Government Bond Auctions (this week)
Apr 17 08:30 Spain 12 & 18M T-bill auction
Apr 17 09:30 Belgium Auctions 3 & 12M T-bills
Apr 18 09:10 Sweden Nominal bond auction
Apr 18 09:30 Germany Eur 5.0bn 0.25% Mar 2014 Schatz
Apr 18 14:30 Sweden Details T-bill auction on Apr 25
Apr 19 08:30 Spain Obligacion auction
Apr 19 08:50 France BTAN auction
Apr 19 09:30 UK Auctions 0.125% I/L Gilt 2029
Apr 19 09:50 France OATi auction
Originally posted here
