Friday’s unemployment stats confirmed the steady recovery of the US economy. However, the US bond yield declined, thus strengthening the US Dollar. This week the FOMC is to hold another meeting to make an interest rate decision.
Today the European finance ministers will meet in Brussels to approve another tranche to Greece. In reality, 35,5B euro was paid on Friday in the form of interest payments to the holders of Greek bonds. Spain ’s budget spending reduction is another issue on the agenda.
China’s external trade balance impressed investors on Saturday. Everyone had anticipated a decline. However, the report revealed a $ 31.5 deficit, the biggest one in 22 years. The central bank is going to use currency exchange rates and interest rates in order to regulate the economy.
The Central Bank of India has downgraded the reserve requirements from 5.5% down to 4.75%, the lowest level since 2004.
Political risks increased after Israel made 2 airstrikes on the eastern sector of Gaza Strip.
According to the Commodity Trading Department of , gold is retracing. The possible targets are 1700-1696 and 1684. A break and consolidation below 1684 will intensify the bearish movement. The rally will be resumed only after the price consolidates above 1712. The closest targets are 1725, 1757.
Silver is retracing as well. The possible targets are 33.75, 33.40. A break below 33.35 means a further downswing. If an H1 bar closes above 34.25, it will trigger a rally with targets around 34.6, 35.0, 35.25.
