By FXEmpire.com
Outlook and Recommendation
Silver ended a rocky month trading at 27.895 in the middle of the range. Industrial metals were hard hit by falling eco data especially disappointment in China. With the hope of stimulus from the Fed and the ECB both industrial metals and precious metals are soared.
With global economic activity slowing, industrial demand for Silver is suffering and that is one reason why Silver prices are under pressure. However, another important reason is that Gold seems to have lost some of its safe-haven appeal, so while Gold prices have struggled, Silver has suffered too. With bullion prices having been back down close to important support levels, buying interest has improved and as we feel there is potential for Gold to become a more important safe-haven going forward, we feel there is a good chance that interest in Silver will pick-up too.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Central Bank Name: Fed Reserve
Date of next meeting or last meeting: Sep 12 (at its August meeting the FOMC held rates and policy)
Current Rate: 0-0.25 % (- 0.75)
Statement highlights of last meeting: To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions-including low rates of resource utilization and a subdued outlook for inflation over the medium run-are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.
Economic events for the month of August affecting USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Aug 1 |
12:15 |
USD |
ADP Non-Farm Employment Change |
122K |
176K |
|
14:00 |
USD |
ISM Manufacturing PMI |
50.4 |
49.7 |
|
|
18:15 |
USD |
FOMC Statement |
|||
|
Aug 2 |
12:30 |
USD |
Unemployment Claims |
375K |
353K |
|
Aug 3 |
12:30 |
USD |
Non-Farm Employment Change |
101K |
80K |
|
12:30 |
USD |
Unemployment Rate |
8.2% |
8.2% |
|
|
14:00 |
USD |
ISM Non-Manufacturing PMI |
52.2 |
52.1 |
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Originally posted here
