{"id":20922,"date":"2011-05-02T08:29:53","date_gmt":"2011-05-02T12:29:53","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=20922"},"modified":"2011-05-02T08:29:53","modified_gmt":"2011-05-02T12:29:53","slug":"osama-bin-laden-killed-dollar-receives-support-as-silver-tumbles","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/05\/02\/osama-bin-laden-killed-dollar-receives-support-as-silver-tumbles\/","title":{"rendered":"Osama bin Laden Killed, Dollar Receives Support as Silver Tumbles"},"content":{"rendered":"

By Russell Glaser<\/strong><\/p>\n

A media frenzy followed the report of the death of Osama bin Laden and traders supported the dollar<\/a> in overnight trading. Silver prices slid 10% before the commodity recovered after futures margins were increased. UK and many European markets are closed today for banking holidays which will leave the FX markets with low levels of liquidity and exaggerate some of the price moves that accompany illiquid trading conditions.<\/p>\n

Spot silver sold off sharply following new margin requirements for futures contracts by the CME Group. The price declined to $42.50 and comes close to the short term trend line off of the January low which comes in this week at $41.20. Silver traders may be able to buy the commodity on a rebound as the fundamentals supporting silver prices (rising demand for the commodity and global inflationary pressures) have not changed. Further support is found at the $38 level.<\/p>\n

Today\u2019s Market Events:<\/p>\n

EUR \u2013 Final Manufacturing PMI \u2013 08:00 GMT
\nExpectations: 57.7. Previous: 57.7.
\nAn uptick in manufacturing data will support the euro as any increase in euro zone economic activity will add more influence for EU inflation hawks. EUR\/USD support come in today at 1.4755 followed by 1.4650. Resistance is found at 1.4880 and the 2009 high of 1.5140.<\/p>\n

GBP \u2013 BOE Gov King Speaks \u2013 13:00 GMT
\nGovernor Mervyn King is set to speak in Brussels today. Should he provide any hint of future British monetary policy the pound should react accordingly. The EUR\/GBP<\/a> is encroaching on the current rising trend line off of the February 18th low which comes in today at 0.8830. A breach of this level and the pair could fall to the support at 0.8715.<\/p>\n

USD \u2013 ISM Manufacturing PMI \u2013 14:00 GMT
\nExpectations: 59.9. Previous: 61.2.
\nRecent positive US data releases have fed into USD selling. However, with the announcement of the death of Osama bin Laden, US traders may be compelled to buy dollars given the patriotic sentiment that often follows such news events.<\/p>\n

Forex Market Analysis provided by ForexYard. <\/a><\/strong><\/em><\/span>
\n<\/a><\/strong><\/em><\/p>\n

\u00a9 2006 by FxYard Ltd<\/p>\n

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

A media frenzy followed the report of the death of Osama bin Laden and traders supported the dollar in overnight trading. Silver prices slid 10% before the commodity recovered after futures margins were increased.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-20922","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=20922"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/20922\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=20922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=20922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=20922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}