UFXMarkets -Daily Gold & Forex Trading News-6-March-2012

UFXMarkets -Daily Gold & Forex Trading News-6-March-2012


Hello, it’s Tuesday 6 March 2012, and I’m
Martin Smith with the daily outlook from UFX Markets. The US Dollar finished mixed versus the majors,
and weakening versus the Euro and Pound as they both gained slightly after Friday’s
selloff. China cut its growth target for 2012 to 8.50%, its lowest level in 8 years raising
recovery fears. U.S Stock markets finished lower, with the Dow declining by -0.11% and
Nasdaq by -0.86%. Crude Oil gained by 0.45% closing at $107; Gold (XAU) also gained, closing
at $1,707 an ounce. No economic data is expected today. The Euro finished slightly higher versus the
Dollar after IMF officials said Portugal should be able to repay its bondholders in 2013 with
no writedowns. Retail Sales came out better than expected, while Final Services PMI came
out lower at 48.80 versus 49.50 expected. The EUR/USD is currently considered bearish
below the 1.33 resistance level. The pair faces its next support level around 1.3180.
Today, Revised GDP is expected unchanged with -0.30% showing that the contraction in the
European economy continues. The British Pound gained versus the Dollar,
showing strength despite heightened growth concerns in Europe and China. BOE Governor
King is looking to make personnel changes in key positions in BOE’s economics division.
The FTSE 100 declined by -0.61% at 5,874.82 weighed by China’s growth concerns. GBP/USD
continues to be bearish as long as it remains below the 1.5960 resistance level, with the
pair facing its next major support at 1.5650. No major economic data is expected today The Yen continued weakening versus most majors
as fears of more intervention in the currency market by BOJ rise and lower the effect of
China’s slower growth target. Technically, the USD/JPY broke above its strong resistance
level at 80.00 and the momentum continues to be bullish. Today, Leading Indicators are
expected with 95.1% versus 94.0% prior. The Canadian Dollar weakened versus the Greenback
and most other majors after China trimmed its growth target for 2012 to 7.5%, lowering
demand for high yielding currencies such as the Loonie. The USD/CAD is still on a downtrend
and a break below the 0.9850 support level could lead to a fall in the pair. Ivey PMI
is expected with 62.1 versus 64.1 prior.

Leave a Reply