Daily Analysis and Trade for Today

Stock markets across globe easily digested BOJ decision and impact was up to limited markets but Japanese Yen was heavily impacted. The yen had dropped more than 3% against the greenback Thursday as the dollar surged after Japan’s central bank said it will pump some $1.4 trillion into the world’s third-largest economy, with the plan to include raising purchases of Japanese government bonds to an annual pace of about ¥50 trillion ($530 billion).

   The BOJ has now made a much firmer commitment to achieving its 2% inflation goal, and has demonstrated that it will do anything short of foreign-bond buying to achieve this goal. Global money supply is sure to continue multifold expansion in the year ahead & this will ensure full blown Currency Wars. Gold and Silver Prices should gain on the monetary debasement, an outcome of the intense Currency Wars, sooner than later now. Gold Prices dropped to a 10-month low on Thursday as investors cashed in the precious metal to cover steep losses in equities after disappointing US economic data. Comex Gold fell as far as $1,540 an ounce, its lowest since May 2012. Gold Prices had slumped earlier as investors were seeking higher returns in equities as the global economic recovery cuts demand for safe haven assets. There have been record sales of government Gold Certificates in recent weeks, there has been little increase in sales of physical Gold Coins and Gold Bars. There is also the unfortunate phenomenon of many middle class people having to sell their Gold Holdings as it is liquid and they are under financial pressure and need the cash in order to pay down debt or just to use in day to day spending. Unfortunately, traders continue to buy strength and sell weakness – the opposite of course of what they should do.

  All eyes are on US pay roll data which is going to release at 12:30 GMT and expected lesser than last time around 200k however if we take ADP data as a clue it should come weak but generally it doesn't go that way. Apparently it's very clear that N.F.P it going direct all markets for next week particularly US equities and Gold. Though our Silver call was quite positive and selling Dax  easily achieved our target  but BOJ's shocking easing policy shocked our selling Usd/Jpy trade call also.

Following are trade calls for today,

• Buy Crude Oil at 92.60 stop below 91.70 target 93.55
• Buy May-Copper at 332.70 stop below 329 target 337.20
• Sell S & P 500 at 1562/64 stop above 1575 target 1541

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