Bundesbank comments Supporting Euro. The euro moved slightly higher against the U.S. dollar after the Bundesbank said that if the slowdown in the German economy will only be brief, which fueled optimism that the euro zone's biggest economy could soon rise. Some analysts predict if the euro will likely move higher during the next few sessions as continued easing concerns over euro zone crisis, though perhaps on a weekend sentiment data is surprisingly negative. Meanwhile, data released Friday showed currency speculators continued to add long positions on the euro, following hawkish comments President of the European Central Bank said that the euro zone's outlook began to improve.
'Short Covering' Try Recover Yen
Yen moves away from the lowest level versus the 2 ½-year U.S. dollar as traders reduce bearish positions in the Japanese currency, in case the results of the Bank of Japan policy meeting turned out to be disappointing. The majority of market participants expect the BoJ with the government will announce an increase to 2% inflation target and increase its asset purchase program to be infinite. Yen short positions have increased significantly ahead of BOJ 2-day meeting, which ends on Tuesday. "Some market participants are aware of the risk of disappointment, which encourages them to short covering ahead of BoJ policy announcement," said Jeremy Stretch, head of currency strategy at CIBC World Markets. "Investors have become aware that the movement seen along the 1 or 2 months is not yet final at least until they can understand the BoJ policy direction in the future."
Pessimistic Sterling Welcomes Q4 GDP data
Pound touched a 9-week lows versus the U.S. dollar as worries about the spread of the UK economy ahead of the data release 4 th quarter GDP on Friday next, which will probably show the economic contraction. Public sector borrowing data on Tuesday, and the Bank of England meeting minutes and the number of jobs on Wednesday also potentially add pressure bearish Sterling. "The focus this week will be focused on the possibility of the UK back into recession, and the risk of downgrade credit rating 'AAA' England," said Nawaz Ali, analyst at Western Union. "GDP data on Friday and will be a crucial factor determining the medium-term outlook for Sterling. Weak figure will obviously increase the selling pressure on the British currency."
Citigroup Cut Gold Projection Year 2013
Citigroup on Monday cut its gold forecast for 2013 by 4.2% to $ 1,675 per troy ounce. They also lowered its forecast for 2014 by 0.2% to $ 1653/oz. "The movement some time ago have exposed gold down to $ 1800/oz technical level, despite favorable conditions that look like interest rates at a record low and fiscal uncertainties have made investors doubt the bullish gold," Citi analysts said in a note. Citigroup saw a number of factors that could potentially push the price of gold this year, such as the purchase of gold by central banks has declined considerably from the peak level recorded in the past 2009 years. Demand for jewelery also continued to decline, so did the demand from the private sector that is expected to follow.
"Investors seem to have lost confidence in the bullish trend of gold, refers to the net capital position maintained on the Comex," Citi analysts said. Managed net capital position in Comex has recorded a decline of 50% since the beginning of October 2012.
Goldman Estimate Gold Rally Amid Debt Limit Debate
Gold will rise for the next three months as U.S. lawmakers try to tackle the U.S. debt ceiling issue and the slow recovery in the largest economy in the world, Goldman Sachs Group Inc.. said, they advise investors to bet on a strengthening gold. "We look at this as the price of a good entry point for rebuilding new positions," analyst Damien Courvalin and Alec Phillips wrote in a report on January 18. Bank confirms roughly targets for the next three months the range $ 1825/ons, because it looks like prices are expected to weaken in the second half as the U.S. economic rebound.
Gold in the quarter dropped by 5.5%, it was the worst performance since 2008, fueled recovery and potential estimates for the end of the U.S. central bank stimulus. Strengthening of gold will reach $ 1825/ons, gold will rally consistently until a decision on the U.S. debt limit, analysts wrote. Since 1960, Congress has raised the debt limit or revised as much as 79 times, according to the Treasury Department. "Uncertainties associated with debt problems, combined with our economists' forecasts for a weak U.S. GDP in the first quarter 2013, following the negative impact of the higher taxes that will push gold" to achieve the target of three months, they added.
'Short Covering' Try Recover Yen
Yen moves away from the lowest level versus the 2 ½-year U.S. dollar as traders reduce bearish positions in the Japanese currency, in case the results of the Bank of Japan policy meeting turned out to be disappointing. The majority of market participants expect the BoJ with the government will announce an increase to 2% inflation target and increase its asset purchase program to be infinite. Yen short positions have increased significantly ahead of BOJ 2-day meeting, which ends on Tuesday. "Some market participants are aware of the risk of disappointment, which encourages them to short covering ahead of BoJ policy announcement," said Jeremy Stretch, head of currency strategy at CIBC World Markets. "Investors have become aware that the movement seen along the 1 or 2 months is not yet final at least until they can understand the BoJ policy direction in the future."
Pessimistic Sterling Welcomes Q4 GDP data
Pound touched a 9-week lows versus the U.S. dollar as worries about the spread of the UK economy ahead of the data release 4 th quarter GDP on Friday next, which will probably show the economic contraction. Public sector borrowing data on Tuesday, and the Bank of England meeting minutes and the number of jobs on Wednesday also potentially add pressure bearish Sterling. "The focus this week will be focused on the possibility of the UK back into recession, and the risk of downgrade credit rating 'AAA' England," said Nawaz Ali, analyst at Western Union. "GDP data on Friday and will be a crucial factor determining the medium-term outlook for Sterling. Weak figure will obviously increase the selling pressure on the British currency."
Citigroup Cut Gold Projection Year 2013
Citigroup on Monday cut its gold forecast for 2013 by 4.2% to $ 1,675 per troy ounce. They also lowered its forecast for 2014 by 0.2% to $ 1653/oz. "The movement some time ago have exposed gold down to $ 1800/oz technical level, despite favorable conditions that look like interest rates at a record low and fiscal uncertainties have made investors doubt the bullish gold," Citi analysts said in a note. Citigroup saw a number of factors that could potentially push the price of gold this year, such as the purchase of gold by central banks has declined considerably from the peak level recorded in the past 2009 years. Demand for jewelery also continued to decline, so did the demand from the private sector that is expected to follow.
"Investors seem to have lost confidence in the bullish trend of gold, refers to the net capital position maintained on the Comex," Citi analysts said. Managed net capital position in Comex has recorded a decline of 50% since the beginning of October 2012.
Goldman Estimate Gold Rally Amid Debt Limit Debate
Gold will rise for the next three months as U.S. lawmakers try to tackle the U.S. debt ceiling issue and the slow recovery in the largest economy in the world, Goldman Sachs Group Inc.. said, they advise investors to bet on a strengthening gold. "We look at this as the price of a good entry point for rebuilding new positions," analyst Damien Courvalin and Alec Phillips wrote in a report on January 18. Bank confirms roughly targets for the next three months the range $ 1825/ons, because it looks like prices are expected to weaken in the second half as the U.S. economic rebound.
Gold in the quarter dropped by 5.5%, it was the worst performance since 2008, fueled recovery and potential estimates for the end of the U.S. central bank stimulus. Strengthening of gold will reach $ 1825/ons, gold will rally consistently until a decision on the U.S. debt limit, analysts wrote. Since 1960, Congress has raised the debt limit or revised as much as 79 times, according to the Treasury Department. "Uncertainties associated with debt problems, combined with our economists' forecasts for a weak U.S. GDP in the first quarter 2013, following the negative impact of the higher taxes that will push gold" to achieve the target of three months, they added.
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