GBPUSD volatility in advance of Christmas holidays

Market Leader informed

Last week the FOMC announced that the economic improvement won’t prevent it from pouring $600 into the market of bonds until the unemployment is high. Will it help the US economy?

Let’s look at this week’s news releases:

Dec 21st
9:30 GBP - Public Sector Net Borrowing

Dec 22nd
9:30 GBP - Current Account
9:30 GBP - MPC Meeting Minutes
15:00 USD - Existing Home Sales

Dec 23rd
13:30 USD - Core Durable Goods Orders
13:30 USD - Unemployment Claims
15:00 USD - New Home Sales

 

What Euro Rates Should be Expected Before Christmas?

Market Leader informed

The Euro is trading today in the range of 1.3130-1.3180.

 

Investors are gradually preparing for Christmas and the calm is coming to markets. No sharp moves were seen early during the trading day on Monday with the dollar stabilizing across the entire spectrum of the market. The Euro remains under pressure because EU countries leaders failed to adopt any fundamental measures last week.

 

Is Forex in Any Way Different from Gambling: Casino, Slot Machines or Thimblerig?

Market Leader informed

Can one make money in the forex? What is the difference between the forex and gambling: casino, slot machines or thimblerig? It is this kind of an attitude to the foreign exchange market, its likening to a type of gambling that starts showing itself in analytical news overviews in a number of media. What indeed is forex for Russians and residents of the world’s other countries?

 

Is there any difference between forex and gambling (casino, slot machines, thimblerig etc)?

 

Experts of the Analytical Team of the Masterforex-V Trading Academy pointed out that trading in the forex, stock and commodities markets is fundamentally different from gambling in a casino, on slot machines:

Sugar: How Much Will it Cost On Christmas Eve?

Market Leader informed

Next week sugar prices in London and New York will remain generally stable. This follows from a survey held by Bloomberg.

 

5 out of 12 analysts, brokers and traders surveyed by the agency don’t expect any significant fluctuations of raw sugar in New York during this week’s trading that will be over on 23 December. On Friday, 24 December, New York and London Commodity Exchanges will be closed because of Christmas Eve.

 

Sugar prices grew in New York based ICE Futures U.S. as experts of the Masterforex-V Trading Academy pointed out in an article. They added almost 7%.

 

Analysts of the Market Sentiment Analysis Department within the Masterforex-V Trading Academy point out that

Gold and Precious Metals: Will Their Prices Go Down Next Week?

Market Leader informed

International markets are marked by lower trading activity and narrower ranges.

 This is caused by coming Christmas holidays. Market participants don’t feel like risking and are content with summary results of the year, on the one hand. On the other, minor speculative transactions don’t reflect sentiment of managers of large hedge funds. Positive figures for the Eurozone and the US are subjecting gold to downward pressures.

 According to some data, the Hindus were actively buying gold during the Asian session today which pushed its price to $1,378.5 an ounce. Nevertheless, the overall pre-New-Year feeling remains uncertain which, of course, is primarily connected with an outflow of funds from the metal market. At the same time, the financial community is dominated by an opinion about short-term pressures on gold as inflationary expectations and the sovereign debt crisis in the Eurozone stir up investor interest in this metal. The silver market continues consolidating around $29 an ounce. The situation with silver is equivocal, though the general sentiment in the market, according to a number of analysts, remains bullish. Based on some data, platinum is supported by Indian jewelers. However, the price hasn’t made any significant move in a couple of days already and is consolidating around $1,700 an ounce.

ECB increases its capital

Market Leader informed

The European Central Bank is currently strengthening its positions to fortify the Euro-zone countries against a possible default.

ECB representatives say the bank is going to double its stock capital from €5B to €10B by the end of 2012. It is the first time the ECB is going to take such a step since the Euro-zone was founded.

In the meantime, during the EU summit, opened yesterday, the countries agreed to found a special permanent fund for securing the stability of the common European currency. The fund will be allocating money only in case of an actual emergency.

The Euro currency rate has slightly strengthened at Forex in the light of the above-mentioned event. The growth of EUR against USD is taking place within the correction against the bearish wave 1.3497-1.3180. At the Department of studying Masterforex-V trading system they think that getting over the MF pivot at 1.3480 will give way to the formation of bullish wave a(C )/C of the senior timeframe. If the bullish MF pivot at 1.3196 fails to restrain the movement, the currency pair will start developing short downward wave “a(C )/C”.

Today’s news (GMT):

UK sees buying fever for New Year trees and golden coins.

Market Leader informed

Not long ago the UK authorities were speaking about financial difficulties and austerity measures necessary to cope with them. Christmas is coming. It is the reason why New Year trees and golden coins have sharply increased in price.

According to the Royal Mint, the current demand for golden coins is the record-high, the biggest one ever seen (for over 1000 years of the Royal Mint existence). Despite the 450% growth of the price on gold since 2001 and the record-breaking price of $1430.95 per ounce (seen last Tuesday) the sales of golden coins have increased by 400%.

In the meantime the British Pound currency rate keeps staying flat at Forex. According to the Department of studying Masterforex-V trading system , GBPUSD has completed a bearish wave of level H8 and is forming a correction. This correctional wave belongs to level H2. It will be developed until the price gets over the MF pivot at 1.5561. In this case the currency pair will see the formation of wave a(C )/C H8.

Today’s news (Dec 17^th ):

Will the Yuan Manage to Replace the US Dollar?

Market Leader informed

The unique path of China’s development has affected its monetary policies and regulation. Transformations in the country started in early 1980s and resulted in rapid growth of the PRC’s economy and, of course, increased weight in the international area not only on different markets, but also in the financial sphere. By late 1990s China eventually became the second-largest holder of gold and foreign currency reserves and the largest holder of debt securities of the superpower – the US. Today China is among leaders of the global economic system and its monetary policies greatly affect global financial markets.

 

What makes PRC’s monetary policies different from western ways?

 

According to experts of the Masterforex-V Trading Academy:
• PRC’s monetary policies are characterized by high effectiveness and specifics far from what is acceptable in liberal economies;
• this helps the country’s government to counter foreign influences and continue successfully developing Chinese economy even in the context of the global crisis;

Precious metal market overview

Market Leader informed

The market of precious metals keeps seeing corrections. Besides,the market is being pressed by the speculative bearish positions and the market sentiments concerning China’s interest rate decision (it is expected to be raised).

Gold has sharply declined. That is how it reacted to the US Initial Jobless Claims report at 10.30GMT (420K for the last week against 421K expected).The price broke through the support level at $1372 per ounce. Now it‘s being traded around $1366.

Global sentiments: according to some analysts, India as the biggest importer of gold, may sharply reduce the import in 2011 (up to 50%). It conditioned by the fact that the rural population, which consumes over 70% of the imported gold, cannot afford buying gold at very high prices. Besides, the Indian market of gold looks overbought (according to unofficial data, this year’s volume of gold imported by India may reach 800 tons).

Copper. Price forecast for 2011.

Market Leader informed

In November-December numerous analytic agencies summarize the results of the year and make forecasts for the next year. In particular, in mass-media articles and releases one can find various forecasts for the future price on copper. Experts of the Department of Market Sentiment Analysis, Masterforex-V Academy, offer their own forecast for the copper futures based on the techniques taught and used at the department.

The price of the copper futures (HG) is currently staying close to the historic high ($4.26), which is a stimulus to perform constant monitoring of the situation. The November up-bar with wide spread and high volume (max volume over the last 7 years) suggests that the big-scale players start taking profit. Defining the further trend will become possible as soon as there are mere signs of one of the variants.