Silver Prices Remain Under Pressure
(MENAFN- DailyFX) Talking Points
Silver is trending lower and bearish below the January 25 high of $15.34. A break to last week’s low of $14.63 may generate a slide to the February 2 low of $14.23. U.S. ADP is today’s highlight for silver as it may affect USD positioning. Silver prices slid as expected and it would be fair to expect the price to reach last week’s low of $14.63 as long as price is being capped by the January 25 high of $15.34. On a breach to the $14.63 low silver may reach the February 2 low of $14.23 and for the trend to turn bullish price may need to overtake the January 25 high of $15.34. A move lower is also supported by the stronger US Dollar index (FXCM: USDOLLAR) which has gained over the last two weeks as the markets begin to reevaluate the outlook for further Fed rate hikes. Traders are now pricing in 38bps in rate hikes over the next 12 months up by 16bps less than two weeks ago. U.S. ADP is on tap and a Bloomberg news poll projects the creation of 190 000 jobs from 200 000 in January. A better than expected reading may keep silver under pressure as it would boost risk-appetite and the US Dollar while a softer reading may boost silver. The weekly DOE/EIA crude oil inventories report is expected to show a build of 3.4m barrels (Bloomberg news projection) and traders will see how crude oil reacts given that it may affect risk-appetite. For further data reports which could prove to be influential on silver prices please see our economic calendar. See the DailyFX Analysts' 1Q forecasts for the Dollar Euro Pound Equities and Gold Silver Prices | FXCM: XAG/USD Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano --- Written by Alejandro Zambrano Market Analyst for DailyFX.com Contact and follow Alejandro on Twitter: AlexFX00 Struggling with Trading? Join a London Seminar
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