The latest story making headlines this morning is the emergence of the stress results carried out on the European banks. The results of these tests are yet to be disclosed as the global financial markets impatiently await the final results.

The Committee of European Banking Supervisors is expected to publish the results of the tests in 20 European Union countries at 5pm London time.

These tests have been conducted to get a clear picture of how these banks stand today and if they have enough resources, should there be another financial collapse in the future.

According to various media reports, several Spanish banks have failed tests, that include the Spain’s 18 cajas. Slovenia also admitted yesterday that its largest bank, Nova Ljubljanska Banka, would fail the stress tests.

There is great deal of controversy that surrounds the whole issue, some critics have been making some strong comments on the Committee of European Banking Supervisors. One of the hard hitting claims is to call these tests a failure if the Greek banks are able to pass these endurance tests.

Gold has witnessed some serious decline this month amid tight economic conditions in States. Gold is currently at $1,176.31 which dropped from $2,157.09, a sharp and unexpected fall. The economic situation has made it easy for investors to invest and make enormous profits from Foreign Exchange market and Stock Market. Euro has recently increased and economists believe that it will continue to rise till the end of September allowing investors to earn 22% profits on investments and therefore very few investments are being done in bullion and gold certificates.

The reason for fall of gold is due to precious metal’s slim demand however Gold miners are positive about the market in Future. Silver have also slipped to 0.8% in single day. The gold prediction in July and August looks bearish as investment opportunities in equities and trade have captured the market. The gold’s drop to eight-week low have already effected many countries regarding economic situation and other gold-backed investment portfolios. Analysts predict that after a short-fall in trade of Gold in the month of July, gold will rise to 11%.

[Source: Kitco]

Pound sterling hit to a seven-week low against Euro and it is expected that the trend will continue till the week-end. The Euro has been sharply rising since last Friday against major currencies and it has been predicted by our financial analysts that Euro will keep on rising till the month of September. The forecast for euro currency exchange rate is positive and investors will benefit from the upward market trend of Euro. “Euro will never crash or come to an end”, says Ferell Johnson, Cheif Executive of Universal Exchange. Traders have witnessed heavy movements in euros which drove the pound down and euro up. The dollar rose to 0.4 percent to $1.5226 against sterling which gave stability to greenback. The Euro is currently traded at $1.29. Heavy euro trading has been recorded after the news of euro currency rise, forcing forex investors to head for eurozone instead of sterling. The former President of Oxbridge has commented saying the pound fall is forced by the U.K. Govt. to increase euro trade, the second reason for pushing pound down is to create a hedge against euro for long term investments therefore the new investors are advised to buy pound sterling if they seriously want to trade and earn more than 20% profits.

The Euro currency exchange rate rose against U.S. Dollar Thursday, after frequent stock fluctuation. The market has again showed Euro investors hope that Euro will recover to new extents and this time profiting to almost 23.5%. “The currencies are following the fluctuation in the equity market and setting up the market trend for itself”, said Fabian Elision, head of U.S. currency sales at ASZ Financial Group Inc.

It is believed that the growth of euro is due to Fitch Ratings which confirmed its stable outlook for Spain. The euro increased 0.4 percent to $1.2895 in New York from $1.2724. The euro was traded at 112.62 yen. The prediction for Euro currency exchange rate by our financial expert came to be true as the trend followed by the market was posted on 29th of June 2010.

Investors are now scrambling to buy eurozone bonds as it is expected to climb and will effectively profit investors in the coming months of August and September. The euro equity markets have also functioned slowly for the last 6 days which improved the rating of euro because of heavy trading and investments

British Pound and US Dollar Exchange rate is now 0.4% lower making 1 GBP = 1.5131 USD. Pound also lost against Euro where 1 GBP = 1.1961 EUR. The British pound has witnessed the lowest level since two weeks early this morning in London. The British Pound Sterling exchange rate has weakened against sixteen major and heavily traded currencies around the world.

The news about economic turmoil and no recovery of British job market has created uncertainty in forex market as investments have turned down to lower levels. The future of Pound sterling is seen as declining due to fewer trade and economic burden.

The UK government was previously warned about the economic conditions which would be faced by it in the matter of no time but the government paid no heed. The Bank of England has currently put at halt the change in interest rates which they believe will lessen the economic burden on middle-men. The forecast of British pound sterling is bearish. It is predicted by Jim Rogers that the UK government had made many mistakes which will now allow it to generate income in the upcoming four to six months. The prediction of Pound Sterling is negative because of the economic trends which have caused the government huge losses and no bailout is expected in shorter terms.

Investors are expected to benefit from the lower pound rates by buying bulk currency in the month of August when the exchange currency will be badly hit by recession.

Oil prices rose to nearly $73 a barrel in Asia and similar effects were seen in stock market and euro exchange rate. The euro advanced to $1.2594 from $1.2537. The euro will continue rising till the end of August and then it will be the most suitable time for investors to sell their euros and earn more than 20% profits.

Generally, the investors around the world follows the equities trend for their investments. For them, the euro rise and a dollar fall is quite a good news because now the crude oil will be cheaper for European exchange carriers.

It is very much expected that from now on the oil prices and stock markets will rise allowing investors to relax and earn profit. The energy sector and food sector of stock markets would drastically rise because of the demand from the emerging economies of the world. The crude oil has also seen rise in sales and since the demand is rising, the prices are expected to move up.

The disastrous Gulf of Mexico oil spill has cost BP $3 Billion for the cleaning work, capping the leakage and paying damages to businesses and governments. Previously BP had to pay $20 billion funds for Gulf damages. The relief wells are being dug in the Gulf but may not work properly due to bad weather forecast.

Smoke was also seen rising from the oil spill site as natural gas was burnt off. After the recent damages bill, BP is now more vulnerable to a takeover by either it’s competitors or by the government. Libya have shown interest in buying BP Shares and it is quite possible for Libya to be a major Stakeholder of BP. Nearly 45,000 employees are working on the oil spill site for clean up purposes.

Since BP had to pay billions of U.S. Dollars for the worst oil spill in the history, BP is now selling fields in different countries to meet the costs. BP shares are expected to fall down very soon as predicted by analysts. The FTSE was seen falling down and the shares of BP were climbing but this trend will short-live.

The trading was bearish on Monday amid worries over US economy and job market. It is believed that the world’s largest economy is suffering whereas other figures indicate that China’s economy could also be effected and slowed down.

The NYSE Dow Jones is currently at 9686 points. The British Stock Market FTSE 100 was recorded flat at 4,836.28 whereas Germany’s DAX was recorded at 5,834.21 and France’s CAC-40 was recorded at 3,340.00. Shanghai index was down by the afternoon at 2363 points whereas Nikkie was at 9266 points.

On the other hand, the forex market also witnessed some fluctuation as dollar rose and euro declined. The world forex market will soon go down due to corrections but this process could take a week. The analysts believe that the giant economy is responsible for the recent economic downturns.

Euro dips 0.2 pct to $1.2345 which is another negative day for eurozone. The Swiss franc also hit high against euro but this news will short live because analysts have predicted euro to incline in the month of July and will keep on rising till October. The investors are advised to buy euros now and sell in the month of September which will earn you a 20% gain on investments.

On the other hand, the dollar is stable again and will be stable for long unless another oil spill clean sweep budget is decided.Sterling has also hit high against euro and dollar. The sterling investors have the opportunity to cash their pound investments and if they decide not to, its fairly okay because sterling peak time will continue till a couple of months. This is euro’s 18 month low against sterling but euro will soon start recovering by the mid of July and will continue to incline almost 22%. Euro showed heavy selling around the world because investors are stockpiling the currency for safer and profitable investments. The Euro outlook now looks attractive against U.S. Dollars

Recently the energy market has witnessed rise in oil prices. The international oil price has reached to almost $3 and is expected to rise in the coming week. Similarly diesel prices have also increased to 5 cents leading it to $3.08. Analysts have confirmed that the future of the energy sector is at stake as energy consumption has increased and BP crises have hit hard the world markets’ energy sector and the losses faced by the company would worsen the market.

On the other hand, the consumers have boycotted the BP stations and protested against the company for its recklessness. The measures taken to clean sweep the oil spill are not enough. Shell, on the other hand said that the deep water drill should be continued to meet the market demands otherwise the oil prices may rise to new extents. The critics say that the price of oil has doubled since Obama took control of the administration which clearly shows that they cannot handle the situation properly.