Browsing all articles from December, 2012
Dec
31

USD/CHF D1 Technical December 31

Outlook for the pair is bullish. Support is around 0.9112 level and resistance at 0.9200 level. If pair break 0.9200 level today it will allow the pair to move further upward.

Dec
31

AUD/USD D1 Technical December 31

AUD/USD has a strong support at 1.0343 level. If pair manages to hold its support level then it will move again toward north and target 1.0400-50 levels respectively.

Dec
31

EUR/USD D1 Technical December 31

EUR/USD is trading in a range of 1.3150-1.3278 level. The trend is not yet clear. Break of any level will clear the trend.

Dec
31

GBP/USD D1 Technical December 31

The outlook for the Cable is bullish for today. Pair will target 1.6207 resistance level. If pair manages to break this level and give a closure above this level it will  indicate strong bullish strength and pair will then further move towards northward.

Dec
29

Precious Gold Declines on US Economic Recovery, Budget Deal Bright

Precious gold plunged for the first time in four days as hopefulness that the US economy is recovering and lawmakers will reach a budget deal damped demand for the yellow metal as a protection against wealth. However Platinum and palladium advanced.

According to Huang Guobo, who oversees management of the $3.3 trillion foreign exchange reserves in China, the US may be a bright spot for the global economy in 2013. House Speaker John Boehner and President Barack Obama have not yet been able to reach a deal to prevent more than $600 billion in automatic spending cuts and tax increases from Jan. 1 which is known as the fiscal cliff.

Janet Kong, an analyst at China International Capital Corp. the nation’s largest investment bank, the US economy has been improving and the market is hopeful on resolution of the fiscal cliff.

Spot gold knock down as much as 0.4 percent to $1,651.62 per ounce and was at $1,655.73 at 3:25 p.m. in Singapore. It lost 2.3 percent previous week, the most since the June 22, following data demonstrate that consumer spending, industrial output and durable goods orders augmented in November.

Gold for February delivery fall 0.1 percent to $1,658.30 per ounce on the Comex in New York. Holdings in precious metal backed ETPs reached a record 2,632.516 metric tons on Dec. 20, and have extended 12 percent this year.

Spot gold is 5.9 percent higher during this year, set for a 12th annual addition, as investors sought the yellow metal to hedge against weakening currencies and the threat of inflation following central banks around the world enhanced stimulus to support economies.

ETP holdings added 274.9 metric tons this year and reached a record 2,632.5 tons on Dec. 20, equal to approximately a year of mine production. Nations from Iraq to Brazil to Russia are buying precious metal to add to reserves. Alternative traders are also bullish, with the 13 most widely held contracts conferring the right to buy at prices from $1,750 to $2,700 from January to November, Comex statistics show.

Dec
29

ECB’s Nowotny Cautiously Hopeful Regarding 2013

Ewald Nowotny, European Central Bank rate setter said that the actions were taken this year by official to address the economic crisis in the euro zone tolerate cautious optimism regarding 2013.

Nowotny welcomed the begin of a permanent rescue fund for stressed euro zone countries, a structure for common bank supervision by the ECB, and a deal to carry on supplying aid to Greece.

Nowotny said in a statement altogether these are significant measures that allow for cautious optimism for a way out of the crisis in 2013.

His attitude strike with comments on Thursday by German Finance Minister Wolfgang Schaeuble, who stated that the worst of the debt crisis appeared to be over.

Both men also worried on the need for euro zone states to stick with tight fiscal policies.

Schaeuble stated he was confident France would depress on with its efforts to stop its debt burden expanding.

Nowotny, who is also a heads of Austria’s central bank, stated the government in Vienna required to bring down its public debt level, which he expected to increase to 75 percent of GDP next year.

He further said that in the view point of the central bank this level is obviously too high. It is therefore crucial to carry on pushing for consolidation. We expect that this path will not be discarded in 2013, an election year.

Nowotny also stated he expected Austrian inflation to drop below 2 percent in the coming two years amid signs of an economic growth.

Schaeuble stated he anticipated Germany’s economy to expand at a decent rate during the coming year underpinned by exports remote to the countries.

Dec
29

President Barack Obama And Senate Leaders to Construct Last Channel of Fiscal cliff Effort

US congressional leaders and Barack Obama agreed on Friday to make a last effort to prevent the United States to over coming the fiscal cliff, setting off strong bargaining regarding Americans tax rates as a New Year’s deadline looms.

Days left to prevent steep spending cuts and tax hikes that could originate a recession, two Senate veterans will try to build a deal that has avoid the Congress and White House for months.

Obama stated he was discreetly optimistic an agreement could be found. However neither side appeared to give much space at a White House conference of congressional leaders on Friday.

He further stated that the American people are not going to have any tolerance for a politically self inflicted wound to our economy,the Congressional Budget Office has stated that if Congress does not act the spending changes and tax might cause a recession in the first half of 2013.

Obama told reporters that the hour for instant action is here. They are now at the point where in just four days, every American’s tax rates are scheduled to increased by law. Every American’s paycheck will get significantly smaller.

A total of $600 billion in tax climb and routine cuts to government spending will create kicking in on Tuesday New Year’s Day if politicians cannot reach a deal. Economists fear the measures will push the US economy into a recession.

A core of fiscal conservatives there strongly opposes Obama’s efforts to elevate taxes for the wealthiest as part of a plan to close America’s budget deficit. House Republicans also want to observe Obama commit to major spending cuts.

Meeting among Obama and Republican House Speaker John Boehner collapsed previous week when several dozen Republicans defied their leader and rejected a plan to raise rates for those earning $1 million or more.

 

Dec
28

GBP/USD D1 Technical December 28

As we said in last article if Cable hold 1.6100 level it will target 1.6200 level. In New York session GBP/USD target 1.6200 level but got a strong pull back and dropped up to 137 pips.  Near term outlook for the pair is bearish for today. Pair will test its support at 1.6057 level. Break of 1.6057 will allow pair to move further downward.

High impact News of Pending Home Sales m/m can change the scenario.

Dec
28

EUR/USD D1 Technical December 28

EUR/USD  is in Bearish mood today. It will test its support at 1.3190 level today. If pair break this level and H4 candle close below support level, then pair will get strength and move towards south.

Later on high impact News of USD can affect the movement of pair. News like Pending Home Sales m/m.

Dec
28

AUD/USD D1 Technical December 28

AUD/USD has strong support at 1.0340 level. If pair holds this support then it will go upward and target 1.0407 level which is daily resistance. On the Contrary, Break of support will give a significantly decline to pair.

High impact Data can affect the pair. Data like Pending Home Sales m/m.