Archive for April, 2008

Dollar bounces back On G7 apprehensions

Monday, April 14th, 2008

As a result of G7 summit Euro which was ahead as compared to the Dollar last week came down. It is evident that the Euro closed more than 1.575 mark on Friday but G7 summit is blamed for its drop. As the dollar is getting more admiration there are chances that G7 might show an involvement in it. Seeing the apprehension on the frequent variation expressed by the Group of Seven the Dollar which has noticed a one week-high as compared to the Euro. This followed a fall of more than ten percent over the previous year.

For the first time the G-7 altered their statement as compared to the currencies in four years. This happened after the meeting that took place in Washington on April 11 where it was promised to check the exchange markets cautiously. The Euro slashed down as compared to the Yen and it cut down losses as compared to the dollar in the Asian stock market. As a result the shareholders had to slash down the holdings for high-yielding possessions that are invested in Japan.

It was noticed that the dollar have risen more than $1.5765 per Euro from $1.5808 on April 11 in New York. It arrived at more than $1.54 which is considered a strong level to reach since April 3.

A currency analyst by profession with RBC Capital Markets which is a investment banking unit of Royal Bank of Canada at Sydney Mr. Sue was of the view that for a shorter period the G-7 communications will be momentous. He also added that involvement is bound to happen and different speech is expected. He said that he will anticipate to the reinforcement of the dollar in coming weeks. The currency also underwent a change as 100.87 yen from 100.93. The yen witnessed a raise to 157.72 per euro from 157.54.

Mr. Sue said that this week there are chances that US currency might increase more than $1.54. Mr. Akio who is a chief manager of foreign exchange trading in Mitsubishi UFJ Trust & Banking Corp in Tokyo said that the traders will be unwilling to push the dollar more down yet there are probabilities that it should fall. By assets it comes at second place as a unit of Japan’s largest banks.  

He added that the dollar will increase to 1102.18 yen and $1.54 euro today. According to Median forecast of thirty-six economists in a Bloomberg News Survey the consumer prices of Britain are expected to rise an annual 2.4 percent. The office for National Statistics will be releasing the producer price statistics today and afterwards they will be producing figures for price rise tomorrow in London.

It has been noticed that Bank of England has slashed the interest rate by 0.23bp and it’s been the third time since December that they have slashed the price. There has been a talk that the conditions have got more constricted which has created a danger of slow economic growth.   Those who enjoy the authority are busy in creating a balance of the danger of sooner price rises determined by high costs of food and energy as this will gain a grip in the economy. It was earlier today that the Pound was reportedly traded at a minimum of 1.9652 against the US dollar and is trading at 1.9707 lately. 

The dollar rise, forces the gold to fall one percent

Monday, April 14th, 2008

Following the meeting of Group of Seven today which lowered the metal’s plea as an optional investment, the gold came down by more than one percent with as euro came down against the dollar. From Platinum, Palladium, and silver they all witnessed a fall of three percent. The platinum slid down below the two thousand dollars an ounce and as for the silver it dropped to a ten day low.

The gold before increasing to $920.48/921.18 it slipped to $914.08 an ounce against $924.58/925.38 in New York. On March 17 it reached to $1.0380.78 which is a record. According to Mr. Tom who is a metal strategist at Mitsubishi Corp until the euro/dollar duo break from its position of $1.5548-$1.5858 lately these costly metals will probably persist to tread water.

The Bullion investors are still optimistic for a time period to a maximum of six months. But they would like to warn that if more liquidation is continued then that it could result to distress in the selling of the merchandise in the coming future. Asian shares are also dropping and for the fifth time in succession the European stocks are also falling. The euro slashed down as compared to the dollar following the Group of Seven showed a major concern for the major changes in the major currencies across the world.

The profits were also restricted with the constant fears that directly concern the economy of America. The euro was at last at $1.5806. A firm dollar formulated in making the gold more valuable for the bearer of other currencies and regularly slashes bullion demand. The oil became easier to trade i.e. around $108 a barrel.

Not able to stay over the main level of $928 encouraged the investors to do more business. For making their future marketing decisions they are awaiting this week’s American data for retails sales, prices for the producer, quarterly earnings by the banks in America, and consumer prices. There are some analysts who are of the view that the there are chances that the gold will make progress.

According to a report of Standard Bank there are probabilities that purchasing a good deal might raise the prices forward seeing the nervous week. The gold enjoys a support at $912 along with $908 and $902 as prospects. As for the other markets, American gold for the month of June delivery slipped down $2.48 to $924.48 an ounce. Platinum slashed down to $1938 an ounce and was last estimated at $1946/1956 against $ 2000/2005 late on Friday which concluded a feeble gold.

It was on March 4th when it touched a record high of $2288. Staying optimistic Citigroup Global Markets and increased the forecast prices for platinum to $2003 an ounce in 2008 and $1798 in 2009 as compared to their early forecast of $1694 and $1498 an ounce.   

According to a market report it has been said that the decision for the platinum price that is kept over $1998 during the first quarter of 2008 has successfully created a standard for the prices of the metal. The silver also noticed a downfall of $17.23 an ounce before it rose up to $17.49/17.54 an ounce against the $17.73/17.79 in New York. The Palladium also witnessed a downfall to $454/461 an ounce to $464/472.