By FXEmpire.com
Analysis and Recommendations:
Silver moved up on the strength of gold, but its move was not as violent or as dramatic. Silver added 0.771 to trade at 28.528.
Shrinking manufacturing activities in the major economies amidst feeble financial situation in the Euro Zone continue to play havoc on the financial markets. Commodities as well as equities were seen to be under the stranglehold of bears and continued to move south ahead of the crucial economic releases from the US. Spot gold slipped, stretching losses after dropping more than six per cent in May, pressured by the fragile euro. Euro was hovering near the two year low levels. The fall in silver was more pronounced than gold in early trading and shed around 1.5 per cent. Until gold and silver recovered and soared on negative eco data from the US.
Contraction in manufacturing activity in eurozone and China intensified concerns over the global economic growth thereby, heightening worries over the demand for base metals. Eurozone manufacturing PIM hit its lowest since June 2009 while, official Chinese manufacturing PMI retreated more than expected to its lowest since last December.
Today’s releases in the US were almost all negative; the US created only 69,000 jobs, when they must create 200,000 jobs just to stay even. Unemployment climbed to 8.2%.
ISM manufacturing took a hit reporting in at 53.5 when economists had forecast 53.9. Core PCE also reported under forecast. This compounded with the lackluster reports of the past 10 days investors turned to gold as the words monetary easing, and QE were heard louder and louder. Markets are now hedging that the Feds will need to take aggressive action quickly to get the US recovery back on track. The Obama Administration is running out of time to lock in the election. They need to see things turned around with several months of supporting data before we get close to the fall elections.
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 for June 1, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jun. 01 |
KRW |
South Korean CPI (YoY) |
2.5% |
2.5% |
2.5% |
|
JPY |
Capital Spending |
3.30% |
1.30% |
7.60% |
|
|
CNY |
Chinese Manufacturing PMI |
50.40 |
52.20 |
53.30 |
|
|
CNY |
Chinese HSBC Man PMI |
48.40 |
48.70 |
||
|
CHF |
Retail Sales (YoY) |
0.1% |
2.0% |
4.7% |
|
|
CHF |
SVME PMI |
45.4 |
46.4 |
46.9 |
|
|
EUR |
French Manufacturing PMI |
44.7 |
44.4 |
44.4 |
|
|
EUR |
German Manufacturing PMI |
45.2 |
45.0 |
45.0 |
|
|
EUR |
Manufacturing PMI |
45.1 |
45.0 |
45.0 |
|
|
GBP |
Manufacturing PMI |
45.9 |
49.7 |
50.2 |
|
|
EUR |
Unemployment Rate |
11.0% |
11.0% |
11.0% |
|
|
USD |
Average Hourly Earnings |
0.1% |
0.2% |
0.1% |
|
|
USD |
Core PCE Price Index (MoM) |
0.1% |
0.2% |
0.2% |
|
|
GDP (MoM) |
0.1% |
0.3% |
-0.2% |
||
|
USD |
Nonfarm Payrolls |
69K |
150K |
77K |
|
|
USD |
Personal Spending (MoM) |
0.3% |
0.3% |
0.2% |
|
|
USD |
Unemployment Rate |
8.2% |
8.1% |
8.1% |
|
|
USD |
Average Weekly Hours |
34.4 |
34.5 |
34.5 |
|
|
USD |
Private Nonfarm Payrolls |
82K |
160K |
87K |
|
|
USD |
ISM Manufacturing Index |
53.5 |
53.9 |
54.8 |
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Originally posted here
