Tatiana Kashyrskaia
According to German media, the ESM may be allowed to use financial leverage in order to boost the lending capacity. If the offer gets full approval, the ESM’s financial capacity will increase up to €2 trillion. The start is scheduled for October 8th 2012.
At the same time, the Spanish authorities are considering another pension reform, which is expected to frees pensions and gradually increase the retirement age.
Investors are also worried about the disagreement between Germany and France over the terms of starting the eurozone banking regulator.
In the meantime, the situation around Iran keeps escalating. An Iranian military official has warned that military conflict between Iran and Israel could “turn into World War III.” He added that if Israel “is putting the final touches on attacking Iran,” a preemptive strike against Tel Aviv would ensue.
There is another seat of tension in the world. China and Japan are still in conflict over the controversial island issue.
Today’s forecast:
According to the Commodity Trading Department of , gold is expected to test 1775-1780. A break and consolidation above 1780 will give way to 1790, and even 1800. Alternatively, if an H1 price bar fails to close above 1780, we may see the price going down to 1750, 1725.
Silver is expected to test 34.25. A break above34.25 will give way to 34.65-34.75, while a break above 34.75 will allow the price to rally up to 35.25. Alternatively, a failure to stay above 34.25 may trigger a bearish move down to 33.75, 33.50, 33.25, or even 33.0.
Tatiana Kashyrskaia
