أشرف العايدي على سي ان بي سي العربية -- 03 أبريل 2013
Apr 3, 2013 15:33
Telling CNBC Arabia that yen traders await Thursday's BoJ decision, which will be scrutinized for whether governor Kuroda succeeds in producing a majority vote in favour of an increase in the amount of assets buys and extending the duration of bonds under the asset purchases program (APP to five years or longer, from the current three years.
There is also the contentious "bank note rule", which stipulates that total asset purchases by the central bank may not exceed total bank notes in circulation so as to avoid monetizing of the debt.
The worst from Cyprus is gone as long as there are no signs that haircuts on deposits spread to other Eurozone nations.
Both ADP and services ISM were a disappointment, which is leading to fresh yen strength vs USD.
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Now that both gold and silver broke well below key fibonacci levels following the jump in global bond yields, the selloff could accelerate depending on the extent, which stocks correct. We have learned this year, each time indices fall by more than 1%, metals move lower as asset managers liquidate long metals positions to stabilize their portfolios. We know the #1 economic priority (not an exageration) of the US administration is to stabilise bond yields in order to cap the interest rate on servicing the ballooning US debt. Gold and silver need to save the immediate support of 4500/oz and 75.40s/oz . The 23.6% retracement follow at $4450/oz and $73/oz respectively. Keep an eye on 10 year US bond yields, especially the possibility of a breakout of the wedge, which could trigger 5.0% in a swift manner. The market consequences of such an event would be cataclysmic.
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