The recent monetary policy meetings of Bank of Canada and Bank of Japan didn’t lead to any big changes as both banks left their respective policy unchanged. Bank of Japan members voted against stepping up the asset purchase program. Bank of Canada left its cash rate unchanged at 1%. This news may have slightly affected the Canadian dollar. According to ADP, it estimates the U.S employment added 198k jobs during February. If this figure will be lower in tomorrow’s non-farm payroll report, it could pull down the commodities and stock markets. Gold and silver remained virtually unchanged yesterday. Will gold and silver pick up today? On today’s agenda: BOE Rate Decision, ECB rate decision, American and Canadian Trade Balance reports, U.S. Jobless Claims, Swiss National Bank Foreign Currency Reserve, Spanish and French 10 Year Bond Auction, SNB Chairman Jordan’s Speech, Japan’s GDP Fourth Quarter 2012, and Japan Current Account .
On Wednesday, the price of gold remained unchanged at $1,574.9; Silver rose by 0.7% to $28.78. During the month, gold slipped by 0.18%; silver rose by 1.35%.
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On Today’s Agenda
BOE Asset Purchase Plan: Bank of England will announce its basic rate as of March 2013 and of any changes to its asset purchase pogrom; as of February BOE left rate flat at 0.5% and the asset purchase plan s at £375 billion;
ECB Rate Decision: The last time ECB lowered its cash rate was back in July 2012 – by 0.25pp to 0.75%. The economic slowdown inEurope including the drop in inflation and rise in unemployment is likely to raise chances of ECB lowering the rate again in the near future. Nonetheless, the current expectations are that ECB won’t change the rate today. If, however, Mario Draghi will hint of a potential future cut, this could cause a reaction in the forex markets;
American Trade Balance: This monthly update for January will show the recent developments in imports and exports of goods and services to and from the U.S, including commodities such as oil and natural gas; based on the recent American trade balance report regarding December the goods and services deficit declined during the month to $38.5 billion;
U.S. Jobless Claims Weekly Report: in the recent report the jobless claims fell by 22k to reach 344k; this upcoming weekly report may affect the U.S dollar and consequently bullion;
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