Month: August 2011

Aug. 24 (Bloomberg) — John O’Donoghue, head of equities at Cowen & Co., discusses the outlook for financial markets and this week’s Federal Reserve annual symposium in Jackson Hole, Wyoming. O’Donoghue speaks on Bloomberg Television’s “InBusiness With Margaret Brennan.” (Source: Bloomberg)

By Forex-Fx-4x.com

Gold temporarily struck the $1,900 point yesterday then quickly pulled back to finish over 3% lower on the market close.

Gold longs could possibly be cashing in on profitable trades and mitigating against potential that Ben Bernanke will not be announcing the new stimulus program at the yearly get together of central bankers found in Jackson Hole. Financial markets seldom move in a single direction without corrective moves and the bearish engulfing reversal candle, at the current highs, was a real heads up that a drop was coming.

We recognised this gold trading signal prior to the huge drop today.  Present daily range is 273% on the ADR for 30 days – a serious move for Gold.  The aforementioned once-a-year get together of central bankers may well influence the mid-term price action for the precious metal.

Gold Near Term Reversal Signal

Gold temporarily struck the $1,900 point yesterday then quickly pulled back to finish over 3% lower at the subsequent market close.  Gold longs could have possibly been cashing in on profitable trades and mitigating against potential that Ben Bernanke will not be announcing the new stimulus program, at the yearly get together of central bankers, in Jackson Hole.

Financial markets seldom move in a single direction without corrective moves and the bearish engulfing reversal candle, at the current highs, was a real heads up that a drop was coming.

We had posted on this gold trading signal prior to the huge drop today.  Present daily range is 273% on the ADR for 30 days – a serious move for Gold.  The aforementioned once-a-year get together of central bankers may well influence the mid-term price action for the precious metal.

By Forex-Fx-4x.com

Aug. 24 (Bloomberg) — Michael Holland, chairman of Holland & Co., talks about the prospects for another round of quantitative easing by the Federal Reserve and the role of the Fed in stemming the 2008 crisis in the financial markets. Holland, speaks with Erik Schatzker, Deirdre Bolton, Jon Erlichman and Sara Eisen on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

Aug. 24 (Bloomberg) — Joseph Stiglitz, a Nobel-prize winning economist and a professor at Columbia University, says Germany’s focus on imposing budget austerity on euro-area governments is the “wrong thing.” David Tweed reports from Munich on Bloomberg Television’s “Countdown.”

Aug. 24 (Bloomberg) — Malcolm Jones, a director at Standard Life Investments, talks about Federal Reserve policy and the European sovereign-debt crisis. Jones, speaking with Linzie Janis on Bloomberg Television’s “First Look,” also discusses investment strategy.

Aug. 24 (Bloomberg) — Mitul Kotecha, head of global currency strategy at Credit Agricole SA, talks about Japan’s $100 billion effort to weaken the yen. He speaks from Hong Kong with Linzie Janis on Bloomberg Television’s “Countdown.”

Aug. 24 (Bloomberg) — Thomas Byrne, a senior vice president for sovereign risk at Moody’s Investors Service, talks about the downgrade of Japan’s sovereign-credit rating. Moody’s lowered Japan’s grade by one step to Aa3, citing “weak” prospects for economic growth that will make it difficult for the government to rein in the world’s largest public debt burden. Byrne speaks from Tokyo with Susan Li on Bloomberg Television’s “First Up.” (Source: Bloomberg)

A sudden surge in crude oil values yesterday brought about resurgence in a recently-weakened Russian ruble (RUS). The value of the RUS was brought down by strong dips in global stocks last week as traders sought the safety of more stable currencies. The US dollar (USD) was making strides against the RUS, but this week has seen the pair turning back in favor of the ruble.

Crude oil is the leading export earner for Russia, which makes its rise in price help lift the value of the ruble. The RUS, in turn, helps return investment interest to the Russian economy at a time when it needs to prove it can weather the financial storm of another global downturn.

With the price of oil holding steady above $86 a barrel, the RUS also climbed significantly against its primary basket of currencies. The RUS moved up over 0.2% against the USD and EUR towards 29.03 per dollar and 41.76 per euro. Talk of another round of quantitative easing by the US Federal Reserve has also caused many investors to bet on a sudden spike in oil values should the greenback become weakened. That predicted spike is also feeding into the ruble’s recent ascent.

Read more forex trading news on our forex blog.

This morning’s report on new industrial orders across the euro zone gave some investors a fright. The data, released by Eurostat, revealed a sudden contraction in demand for new industrial orders throughout the region. With consumer and business confidence in decline, the euro (EUR) appears set to take heavy losses this week.

Industrial demand figures in to a region’s productivity. With yesterday’s reports of positive growth in manufacturing PMI, the sudden downturn in industrial data seems to offset yesterday’s optimistic gains. The confidence reports from ZEW and Ifo these past two days are also undermining the gains seen from the recent string of PMI reports. Look to a weakening euro this week.

Read more forex trading news on our forex blog.

Aug. 24 (Bloomberg) — Sean Callow, a senior currency strategist at Westpac Banking Corp., talks about Japan’s $100 billion effort to help companies cope with a surging yen and the decision by Moody’s Investors Service to lower Japan’s debt rating by one step to Aa3. He speaks with Linzie Janis on Bloomberg Television’s “First Look.”