economy
Day Trading Course, Yen, Dollar, and Swiss Franc strengthen as investors seek safer assets
The yen, dollar and Swiss franc rose against most of their major
peers amid renewed demand for refuge assets after earthquakes shook buildings in
Tokyo, a month after a record temblor triggered a nuclear crisis. The
yen strengthened against all of its 16 most-traded counterparts after Japan
raised the severity rating of the accident at the Fukushima Dai-Ichi power plant
to 7, matching the 1986 Chernobyl disaster rating. The yen appreciated 1.1% to
120.81 per euro from 122.12 yesterday, set for the biggest daily gain since
March 16. Japan’s currency increased to 83.88 per dollar from 84.60, after
reaching 83.47, the most since April 1. The franc rose to 1.3034 per euro from
1.3087 yesterday. It strengthened to 90.49 centimes per dollar from 90.67, after
touching 90.20, the highest level since March 23.
The greenback gained for a second day versus the euro as the Nikkei
225 (NKY) Stock Average slid 1.7%, pacing a 1.4% drop in the MSCI Asia Pacific
Index. The Standard & Poor’s 500 Index declined for a third day
yesterday. The dollar climbed to $1.44 per euro from $1.4436.
Australia’s dollar fell the most in four weeks against the yen as
Asian stocks extended a worldwide retreat, damping demand for higher-yielding
assets. The Aussie also weakened after a gauge of commodity prices
declined and a technical indicator showed the currency was poised to drop. The
14-day relative strength index for the Aussie against the dollar was at 66
yesterday, near the 70 level that some traders see as a sign an asset’s price
has risen too fast and may reverse course. Against the yen, the RSI was 69
yesterday. Australia’s currency fell 1.4% to 87.55 yen from 88.79 yesterday, the
largest daily loss since March 16, and declined 0.6% to $1.0429.
Gold retreated as a rally to a record prompted some investors to sell
and a tumble in energy prices, sparked by reduced economic growth forecasts from
the International Monetary Fund, reduced inflationary pressures.
Immediate-delivery bullion fell 0.6% to $1,454.68 an ounce this morning after
touching an all-time high of $1,478.18 yesterday. Spot silver shed as much as 1%
to $39.8375 an ounce after reaching $41.9525 yesterday, the highest level since
1980
Day Trading Course, S&P 500 Daily Price Action
Yesterday continued the push to the downside, on volume of about 2.1M contracts price traded to a low of 1305.25 yesterday. Overnight show the work of a retracement going into the open. Today’s trading could see the continuation of the retracement into the 1320′s if volume falls off. If the sellers decide to step back in and move things some more area’s to watch include 1313.75, 1311.50, 1308.50 and 1300.00 support.
Day Trading Course, Euro falls/Gold & Silver continue the push
The euro fell against most of its major currencies on speculation its
advance to a 15-month high against the dollar was excessive given lingering
concern Europe’s debt crisis may worsen. Europe’s common currency
retreated from its highest level since May 2010 against the yen as technical
charts signaled the past month’s 7.6% rally may reverse. The dollar ended a
two-day drop against Japan’s currency after U.S. lawmakers pulled the government
back from the brink of a shutdown by agreeing to cut about $38 billion from
federal spending. The euro fell to $1.4461 from $1.4483 last week, when it rose
to $1.4489, the most since January 2010. The currency declined to 122.49 yen
from 122.76 last week, after earlier reaching 123.33 yen, the strongest since
May 5, 2010. The dollar traded at 84.70 yen from 84.76 yen last week.
Gold climbed to a record and silver topped $41 an ounce, gaining for
a ninth straight day in the best run since March 2008, as investors sought
precious metals as hedges against accelerating inflation.
Immediate-delivery bullion gained as much as 0.2% to $1,478.18 an ounce and
traded at $1,473.20 this morning. Gold strengthened 3.8% this year after
rallying 30% in 2010 on the prospect of currency debasement and rising
inflation. The fighting in the Middle East, a nuclear crisis in Japan and
European sovereign-debt problems have also bolstered demand for precious metals.
Cash silver rose as much as 1.5% to $41.5238 an ounce, the highest level since
1980, before trading at $41.465 an ounce.
The Standard & Poor’s GSCI Spot Index of 24 raw-materials futures
reached 760.81 points on April 8, the highest level since Aug. 4, 2008.
Crude touched a 30-month high of $113.46 per barrel today amid fighting in Libya
and unrest in the Middle East. The European Central Bank last week raised the
main interest rate 25 basis points to 1.25%.
