By FXEmpire.com
Introduction: Silver futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of silver (eg. 30000 grams) at a predetermined price on a future delivery date.
Some Facts about Silver
Silver is a soft, shiny and heavy metallic element with a brilliant white luster. A very ductile and malleable metal, its thermal and electrical conductivity is the highest of all known metals.
Besides being used as a store of value, other main uses of silver include applications in areas such as electronics, photography and as antiseptics.
Consumers and producers of silver can manage silver price risk by purchasing and selling silver futures. Silver producers can employ a short hedge to lock in a selling price for the silver they produce while businesses that require silver can utilize a long hedge to secure a purchase price for the commodity they need.
Silver futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable silver price movement. Speculators buy silver futures when they believe that silver prices will go up. Conversely, they will sell silver futures when they think that silver prices will fall.
Weekly Analysis and Recommendations:
Silver ended the week at 27.74 bumping up and down on market whims, based on central bank hopes and rumors. As the FOMC meeting drew near, precious metals gained but industrial metals fell on negative eco data from China. The industrial metals pack was weak most of the week, holding back silver from the gains as seen in gold. On Friday after the nonfarm report showed more new jobs than expected investors spread out in the markets and with hopes of a change in the US economic situation, industrial metals soared as well as precious metals on the back of the weakened US dollar.
|
Date |
Open |
High |
Change % |
||
|
Aug 03, 2012 |
27.740 |
27.118 |
27.858 |
26.998 |
2.29% |
|
Aug 02, 2012 |
27.120 |
27.408 |
27.760 |
26.938 |
-1.03% |
|
Aug 01, 2012 |
27.403 |
27.898 |
28.020 |
27.075 |
-1.76% |
|
Jul 31, 2012 |
27.895 |
28.080 |
28.333 |
27.880 |
-0.68% |
|
Jul 30, 2012 |
28.085 |
27.645 |
28.193 |
27.515 |
1.60% |
Silver is expected to trade in the 27-28 range in the coming week. Rumors of monetary stimulus from China are creeping into the markets, this could support both sides of Silver.
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.
Major Economic Events for the week of Aug 30 – Jul 3 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul 30 |
EUR |
Spanish Flash GDP q/q |
-0.4% |
-0.4% |
-0.3% |
|
EUR |
Italian 10-y Bond Auction |
5.96|1.3 |
5.82|1.7 |
||
|
Jul 31 |
USD |
CB Consumer Confidence |
65.9 |
61.5 |
62.7 |
|
Aug 1 |
CNY |
Manufacturing PMI |
50.1 |
50.4 |
50.2 |
|
GBP |
Manufacturing PMI |
45.4 |
48.6 |
48.4 |
|
|
USD |
ADP Non-Farm Employment Change |
163K |
121K |
172K |
|
|
USD |
ISM Manufacturing PMI |
49.8 |
50.3 |
49.7 |
|
|
USD |
FOMC Statement |
||||
|
Aug 2 |
GBP |
Construction PMI |
50.9 |
48.2 |
48.2 |
|
EUR |
Spanish 10-y Bond Auction |
6.65|2.4 |
6.43|3.2 |
||
|
GBP |
Asset Purchase Facility |
375B |
375B |
375B |
|
|
GBP |
Official Bank Rate |
0.50% |
0.50% |
0.50% |
|
|
EUR |
Minimum Bid Rate |
0.75% |
0.75% |
0.75% |
|
|
EUR |
ECB Press Conference |
||||
|
USD |
Unemployment Claims |
365K |
375K |
357K |
|
|
Aug 3 |
GBP |
Services PMI |
51.0 |
51.6 |
51.3 |
|
USD |
Non-Farm Employment Change |
163K |
101K |
64K |
|
|
USD |
Unemployment Rate |
8.3% |
8.2% |
8.2% |
|
|
USD |
ISM Non-Manufacturing PMI |
52.6 |
52.1 |
52.1 |
Historical: From 2010 to present
Highest: 49.813 on Apr 25, 2011
Average: 28.468 over this period.
Lowest: 14.655 on Feb 05, 2010
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Aug 6 |
8:30 |
EUR |
Sentix Investor Confidence |
-29.6 |
|
23:01 |
GBP |
BRC Retail Sales Monitor y/y |
1.4% |
|
|
Aug 7 |
7:00 |
CHF |
Foreign Currency Reserves |
364.9B |
|
7:15 |
CHF |
CPI m/m |
-0.3% |
|
|
8:00 |
EUR |
Italian Industrial Production m/m |
0.8% |
|
|
8:30 |
GBP |
Manufacturing Production m/m |
1.2% |
|
|
10:00 |
EUR |
German Factory Orders m/m |
0.6% |
|
|
14:00 |
GBP |
NIESR GDP Estimate |
-0.2% |
|
|
Aug 8 |
5:45 |
CHF |
SECO Consumer Climate |
-8 |
|
9:30 |
GBP |
BOE Inflation Report |
||
|
10:00 |
EUR |
German Industrial Production m/m |
1.6% |
|
|
12:30 |
USD |
Prelim Nonfarm Productivity q/q |
-0.9% |
|
|
12:30 |
USD |
Prelim Unit Labor Costs q/q |
1.3% |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
Aug 9 |
8:00 |
EUR |
ECB Monthly Bulletin |
|
|
8:30 |
GBP |
Trade Balance |
-8.4B |
|
|
12:30 |
USD |
Trade Balance |
-48.7B |
|
|
12:30 |
USD |
Unemployment Claims |
||
|
Aug 10 |
6:45 |
EUR |
French Industrial Production m/m |
-1.9% |
|
8:30 |
GBP |
PPI Input m/m |
-2.2% |
|
|
12:30 |
USD |
Import Prices m/m |
-2.7% |
|
|
18:00 |
USD |
Federal Budget Balance |
-59.7B |
Upcoming Government Bond Auctions
Date Time Country
Aug 06 09:10 Norway
Aug 07 00:30 Japan
Aug 07 09:15 Austria
Aug 07 14:30 UK
Aug 07 17:00 US
Aug 08 09:30 Germany
Aug 08 10:00 Norway
Aug 08 15:30 Italy
Aug 08 17:00 US
Aug 09 15:30 Italy
Aug 09 17:00 US
Aug 10 10:00 Belgium
Aug 13 09:10 Italy
Aug 13 09:10 Norway
Aug 13 09:30 Germany
Aug 14 09:10 Greece
Aug 14 09:10 Italy
Aug 14 09:30 Belgium
Aug 14 14:30 UK
Aug 15 09:10 Sweden
Aug 16 09:30 UK
Aug 16 15:00 US
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Originally posted here
