EU Morning Report - Gold records 5-month low

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By Easy-Forex
15 May 2012 @ 02:17 am EDT

The euro (EUR) recorded losses against most of its major counterparts as the never ending political crisis in Greece drags the single currency lower. Greek President Papoulias proposed a government of technocrats in a bid to overcome differences among party leaders. SYRIZA, a left-wing party that wants to renegotiate the bailout terms, rejected this. Even though there is going to be a fresh round of talks today, any breakthrough is unlikely. Against the Brittish pound, the single currency produced a dive at 0.7969 a 52-month record low - from 0.8023.

The US dollar (USD) appeared strong versus a basket of currencies on a lackluster financial calendar day. The ongoing uncertainty, heightened risk aversion and favored risk haven buying of the greenback. Against the Canadian dollar (CAD), the US dollar climbed to 1.0023 from 1.0006. Versus the Swiss franc (CHF), the greenback rose to 0.9361 from 0.9313, breaking through the 0.9330 resistance area.

The Australian dollar (AUD) dropped below parity against the US dollar for the first time this year, opening at 1.0018 and closing at 0.9971. This happened even as the China cut its required reserve ratio by 50 basis point - the third cut in six months - in an effort to avoid an economic slowdown.

Oil prices plunged to 93.94 from 95.15 dollars a barrel. Gold (XAU) dropped to 1558.35 from 1580.62 US dollars an ounce, below 1568.30 - its opening price for the year. Against the euro, gold plummeted to 1214.11 from 1229.07 euro an ounce. Silver (XAG) moved down to 28.2039 from 28.7981 dollars an ounce.

Outlook		Pivot	Preference1	Sentiment2
	EURUSD	1.2880	SHORT @ 1.2870	37% of deals buy EUR
	USDJPY	79.95	SHORT @ 79.95	97% of deals buy USD
	GBPUSD	1.6080	LONG @ 1.6085	33% of deals buy GBP
	AUDUSD	0.9950	LONG @ 0.9950	38% of deals buy AUD
	GOLD	1577	SHORT @ 1577	66% of deals buy GOLD
	OIL	95.10	SHORT @ 95.10	51% of deals buy OIL

1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer

Calendar	Currency	Time (GMT)	Event	Forecast
	EUR	08:30	Trade Balance in March	-8.4 bil
	GBP	09:00	1^st quarter flash GDP q/q	-0.2%
	USD	12:30	Retail Sales in April	0.2%

Equities	EUROPE		US		ASIA3
	FTSE 100	-1.97%	S&P 500	-1.11%	NIKKEI	-1.01%
	DAX	-1.94%	DJIA	-0.98%	HIS	0.12%
	CAC	-2.29%	NASDAQ	-1.06%	CSI 300	-0.59%

3 at the time of writing

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