Crude Daily Commentary for 5.6.09

Crude futures continued their consolidation yesterday on marginal volume. However, yesterday’s volume was substantially higher than Monday’s meaning we could see large activity and volatility today. The futures are attempting to position themselves for a rally as they realize April highs suddenly aren’t so far away. If the ADP Non-Farm Employment Change and crude inventories each beat analyst expectations, crude futures could push nicely above May highs towards our 3rd tier uptrend line.

GBP USD Technical Forex Analysis for Forex Traders

GBP/USD was trading in the range of 1.5150-1.4980 area early in this week .It is expected to make highly volatile moves today during the BOE and ECB interest rate announcement time and also during ECB press conference time.

GBP/USD is expected to break the initial high (1.5156) and low (1.5101) set for the day during European and US sessions. A low in the range of 1.4850-1.4900 could be formed during European session and a high of 1.5200-1.5270 could be formed during US session before tomorrow another big event NFP data release.

Gold Daily Commentary for 5.7.09

Gold has surged higher in reaction to the surprise addition of funds to the BOE’s quantitative easing operation. In addition to the BOE’s decision, the ECB has announced the implementation of alternative liquidity measures of its own. The ramp up in liquidity around the globe is creating fear of future inflation, which in turn is boosting the price of gold.

GBP/USD Daily Commentary for 5.7.09

The Pound is experienced relative weakness across the board after the BOE announced it will add $50 billion to its present quantitative easing operation to make a grand total of $125 billion. While analysts expected the BOE to keep its benchmark rate unchanged at .50%, the additional funds for quantitative easing caught investors a bit off-guard. Boosting quantitative easing could indicate that deflationary pressures are stronger than expected, meaning the British economy is still facing some unforeseen difficulties. The Cable pulled back from its rally on strong volume in response to the news.

India’s Forex Reserves Declined By $1.39 Bn

The figures disclosed by the weekly statistical supplement released by the Central Bank (RBI) showed that India’s foreign exchange reserves for the week ended May 01 has declined by $1.39 billion to $251.702 billion.

It should be noted that the reserves came up by $631 million to $253.091 billion during the week ended April 24.

The reports said that the recent fall in foreign exchange reserves was mainly due to a revaluation of reserves and a reduction in price of gold assets held by RBI.