Higher Spanish bond yields and concerns over Spain ’s banking system forces investors into selling the Euro yesterday. As a result, EURUSD came closer to the 2-year low. Greek surveys show that most Greeks want the EU to reconsider the financial support conditions. The eurozone consumer confidence index improved a little against April’s readings but is still in the negative zone.
The US business activity report came out much worse than expected. The consumer confidence report came out negative as well. The markets will be focused on the GDP and employment reports, which are to be published on Thursday and Friday correspondingly.
The European instability make investors search for safe haven in Japanese T-bonds, which makes the Japanese Yen stronger, thus affecting Japanese exporters.
It is reported that the Chinese authorities are planning to start a wide-range campaign aimed at stimulating the national economy. The news made commodity markets (including metals) decline a little.
According to the Commodity Trading Department of , on breaking and consolidating above 1551 gold may test 1555-1557. In order to resume the rally, the price will have to consolidate above 1558. Alternatively, a failure to consolidate above 1551 will intensify the bearish movement down to 1535, 1525, 1500.
As for silver, it is expected to test the 27.8-27.90 resistance area. On consolidating above 27.8, the price may test 28.15-28.25, with a further rebound. If the price fails to consolidate above 27.80, the downtrend may strengthen and hit 27.50, 27.25, 27.0.
