Daily Analysis and Trade for Today

Commodities on Wednesday got thrashed  Crude Oil around 3% ,Gold 1.4% and so do other commodities also but big question was after weak US ADP data why GOLD fell ?The selling in the largest gold-backed exchange-traded fund “has created a scenario of liquidation in the gold market — putting pressure on price of gold and counterbalancing what physical demand there is,” said Jeffrey Wright, managing director at Global Hunter Securities. But here is very much seems that physical demand is there only paper selling is taking toll on Gold. If something seriously goes in Korean peninsula than only gold will get lift otherwise we should look forward to 1375 if market breaks 1530 which doesn't look impossible. 

   As expected BOJ gave market more than expectations and we will awaiting now from BoE,ECB and Fed Chairman Mr. Bernanke though except BoE we are not expecting anything unusual from ECB and Mr. Bernanke.   

   After weak ADP data three other economic signposts have also suggested some potential trouble ahead. The consumer confidence index for March fell to 59.7% in March from 68.0% in February.  Jobless claims shot up above the 350,000 mark last week for the first time in a month and a half. The ISM manufacturing index softened to 51.3% last month from a nearly two-year high of 54.2% in February. The ISM services index of 54.4% certainly wasn't bad, but it was worse than consensus and the lowest reading since August. Most economists have already penciled in a slowdown in growth in the second quarter. Gross domestic product is forecast to drop to 2.2% from an estimated 2.8% in the first three months of the year. Growth is expected to re-accelerate in the final six months of 2013, but not in a big way.

So what's the best bet for coming days?? That's S&P 500 selling around all-time high. However yesterday we had excellent trading day after great fall on Crude oil we easily achieved target and so do on AUD/USD selling.

Following are trade calls for today,

• Sell Usd/Jpy at 95.50 stop above 96.00 target 93.71
• Buy Silver at 26.65 stop below 26.00 target open 
• Sell Dax(German 30 ) at 7905 stop above 7955 target 7835/40

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