Products sold as eurozone PMIS cloud the prospects for global growth

Do not have a FXCM account?

Or

Do not have a FXCM account?

Or

Follow us

Ilya Spivak, currency 21 June 2012 strategist 09: 22 GMT Talking Points

Oil crude, copper follow low Stocks on PMI for the eurozone Soft Gold and silver reports sold as Fed holds IS3, Dollar Gains on Haven flows product prices are traded significantly lower in European trade initially, mirroring of a bond through grants from the region. The rout follows a game dismal figures of PMI for the eurozone, where the regional composite gauge shows (as expected) that manufacturing and the services sector declined at the fastest pace in three years. Signs of deepening recession in the currency bloc are weighing on the appetite of risk given that the decline represents face largest wind of the world this year.

Crude oil and copper prices are naturally less given the sensitivity of the two products to global growth trends. Gold and silver in the same way in the red as the austere atmosphere stokes haven demand for the US Dollar, apply de facto pressure downward. Announcement of the policy of yesterday FOMC is amplify condemnation of sellers after Ben Bernanke and company has opted for not to launch a third phase of quantitative easing, sinking of the application of precious metals as a cover for inflation.

Future of S & P 500 stock index are markedly lower pointing before the Wall Street opening bell, arguing for more information as well as North American markets are online. Fears of euro-zone debt crisis remains a major Joker however. Euro-zone finance ministers should start a meeting of two days following the completed G20 Summit earlier this week, where policy makers face strong pressure from world leaders to strengthen the efforts of crisis containment.Concrete initiatives tend to wait the week next to the Summit of the leaders of the EU, but traders will nevertheless pay attention to marginalize the comments of the first signs.

Spain is also expected on the results of an audit for a label of price of recapitalisation sector of banking in the country. More than €100 billion - or uncomfortably upper limit of rescue Madrid obtained last week - is likely to stir up the risk aversion. Results of a sale auction bond offer 2014, 2015 and 2017 paper today will be an instant impact barometer, with a cover of particularly low or average yields offers cover readings that may exacerbate the pressure on risky assets.

Crude oil WTI (near NY): $81.45 / /-2.90 / /-3.44%

Prices are tested under the Fibonacci 23.6% 81.07 expansionat, with a smaller break on a daily basis of closing exposing the 38.2% level to 77,34. For the moment, the resistance in the short term remains 87.00 figure, marked by high June 7.

Daily chart - created with FXCM Marketscope 2.0

Spot Gold (near NY): $1607.48 / /-11.05 / / 0.68%

Prices reversed lower resistance to 1637.35, the tracing of Fibonacci 76.4%, after having placed in a bearish Hanging Man candlestick. Vendors are now testing the figure of 1600/oz, a barrier reinforced by the 50% Fib, with a pause in exposing the level of 38.2% to 1582.10. The tracing of 61.8% to 1616.23 is now the resistance in the short term.

Daily chart - created with FXCM Marketscope 2.0

Cash (near NY): $28.16 / /-0.27 / / 0.93%

Price completed a bearish continuation flag graphic, exhibitor 27.06 as the next objective of disadvantage. The first layer of 29.71 place important resistance lines, but the training involves a measured goal disadvantage in 26.46. The bottom of the flag, now at 28.45 was reconfigured as short term resistance.

Daily chart - created with FXCM Marketscope 2.0

COMEX E-Mini Copper (near NY): $3.388 / /-0.046 / /-1.34%

Prices broke back below the tracing of 23.6% Fibonacci 3.384 to complete a pattern of candlestick bearish engulfing, referring to other upcoming losses. Initial support aligns to 3.296, 23.6% expansion Fib, with a break in this exhibition support Triple Bottom to 3.250. 3.384 Level is now short term resistance.

Daily chart - created with FXCM Marketscope 2.0

-Written by Ilya Spivak, currency for Dailyfx.com strategist

Contact Ilya, e-mail ispivak@dailyfx.com. Follow Ilya on Twitter at @ IlyaSpivak

To be added to the list of electronic distribution of Ilya, send a note with the subject line "Distribution List" to ispivak@dailyfx.com

DailyFX provides news forex and technical analysis on trends affecting the global currency.
Learn forex trading with a free account for practice and exchange of FXCM charts.

June 21, 2012 09: 22 GMT

/ / SET the properties on the PAGE var sProperties = new Object(); sProperties.server = "2.6". sProperties.channel = ' basic: product; / / Pass the properties on the page to Omniture if (typeof sProperties! = "undefined") {for (var sProperty in sProperties) {s [sProperty] = sProperties [sProperty];}} var s_code = ne. (); If (s_code) document.write (s_code);

View the original article here