• Trading Account
  • Downloads
  • Nifty Options OI
    • Nifty Max Pain Chart
    • Nifty Option Change in OI Chart
    • Nifty Put Call Ratio
    • Nifty Option Total Change in OI
    • Nifty Trend Finder
  • BankNifty Option OI
  • About Us
  • Learn Technical Analysis
    • Advance Option Trading Course

OurNifty.com

A Indian Stock Market Blog

  • Forex
  • Gold
  • Intraday Stocks
  • Midcap Stocks
  • Multibagger
  • Nifty
  • Nifty Option
  • NSE
  • Amibroker

Forex: Weak Chinese Numbers Spook Markets, Buy Gold

By Bhaveek Patel Leave a Comment

The U.S. dollar was hammered versus the Yen, trading near its seven week low after a large sell-off made safe havens more attractive. One beneficiary was the Swiss Franc, which reached a three week high against the dollar.

Weak Chinese Reports Worry Markets
Markets have been rattled by weak manufacturing reports from China that suggest its economy is slowing down. Manufacturing activity fell in January to the level of 49.6 following a 50.5 performance in December. The announcement prompted concerns in the markets, leading to a move into safe havens like the Japanese Yen and Swiss Franc. It also led to the advance of German bonds to a one month high with yields falling to five month lows.

Securities in Italy fell following the recent news from China, and Spain also found its securities dropping for the first time in recent weeks. The U.S. dollar also continued to be weak, although most of the weakness is thought to be a result of the markets anticipating further tapering by the Federal Reserve.

Euro Strengthens
The Euro gained ground versus the U.S. Dollar for a number of reasons, including the release of PMI numbers. Services and manufacturing beat expectations, and the region’s largest economies except Germany saw robust numbers in both sectors.

The Services PMI in the E.U. beat expectations of 51.5, coming in at 51.9, while manufacturing beat expectations of 51.5 with a figure of 51.9 — the largest increases since the summer of 2011. The Euro strengthened in spite of bearish sentiments expressed by the President of the European Central Bank. The President’s inflation concerns were not shared by many economists who feel the Euro could continue to advance if economic data continues to be positive.

Gold Lifts
The price of gold spiked to its highest level in nine weeks as inflows came from investors spooked by stock market losses and concerns about emerging markets.

Market Outlook
Many economists expect more weakness in the markets as more data emerges from China. The Federal Reserve should also have an impact with further tapering expected to affect the stock market and emerging markets.

Reference iforex.in

Share5
Tweet
Pin
5 Shares

You Should Read This:

  1. Gold (Spot) Trading Analysis for 7 January 2011, Sell Below 1378 Gold spot intraday trading for 7 January 2011, Gold intraday trading tips, Short (Sell) positions in Gold below 1378 with targets as 1365 and 1356. Stop loss should be placed around 1384 level. Also trade...
  2. Gold (Spot) Trading Analysis for 3 May 2011, Buy above 1543 Gold intraday trading analysis for 3 May 2011, we recommend to trade long in Gold above 1543 level with targets as 1549 and 1554. Stop loss should be placed below 1538 level. Why to trade...
  3. Trading Gold with Technical Analysis, How should I trade Gold today, Buy or Sell Gold has made new all time high today morning and this move was a clear sign that gold has become the safe heaven for the uncertain stock markets. Even the news that S&P has downgraded...
  4. Chinese GDP data, Why Nifty future will trade lower this week We are predicting that nifty future is going to trade lower this week, here is the main reason behind our analysis. On Friday, Chinese real GDP data is due to be released, previously this number...
  5. Forex: Gold (Spot) Intraday Trading Analysis for 11 March 2011, Sell for Target 1402 Gold intraday trading analysis for 11 March 2011, we recommend to trade short in Gold below 1412 level with targets as 1406 and 1402. Stop loss should be placed above 1416 level. Reason to trade...

Category: Forex Tags: Buy Gold/ China PMI/ Chinese GDP/ Forex Trading

About Bhaveek Patel

Bhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post: Nifty future faces resistance at 6333, Sell on Bounce
Next Post: [Updated] MCX EOD database for Amibroker, Free Download

Advance Options Trading Course

options trading course

Lowest Brokerage Trading A/c

Lowest brokerage trading account opening in India

Learn Technical Analysis

technical analysis course

Recent Articles

  • ASX Penny Stocks List for 2023
  • 7 Ways to Boost Your Revenue
  • NYSE Penny Stocks List for 2023
  • Short On Cash? Here’s How You Can Manage Your Priority Spends
  • FREE Webinar on Option Chain Analysis
  • LSE Penny stocks list for trading in 2023 Should you buy?
  • BSE Penny Stocks List 2023

Popular Categories

Amibroker Finance Forex Gold Intraday Stocks IPO Midcap Stocks Multibagger NEWS Nifty Nifty Option NSE Short Term Stocks Technical Analysis

About Us | Contact Us | Privacy Policy | Disclaimer


Copyright © 2009 - 2023 OurNifty.com Trading ideas published here cannot be reproduced without permission from the author.
OurNifty is Powered by Wordpress and hosted on Digital Ocean