Optimism which drove markets higher on the back of trade hopes is starting to show cracks, but yesterday’s Eurozone PMI data surprised to the upside. Safe-haven assets such as gold and Silver sold-off as capital rotated into riskier assets, but support levels in Silver prevented a bigger sell-off. Australian trade data showed a surprise increase in exports, but this precious metal maintained its bullish bias. How will Silver react after European data will be released? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

The Bank of England will be in focus today, but expectations call for no change. Traders will look for forward guidance in regards to monetary policy or its bond buying program. With plenty of unresolved issues and an economy which is heading closer to a recession while central banks remain helpless, safe haven assets such as Silver could get a bullish catalyst and accelerate to the upside. Will bulls rally behind this precious metal or can bulls pressure for a breakdown in Silver? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this currency pair.