The USD lost ground to the EUR and Sterling as range trading surfaced and the broad markets turned out to be that they are nevertheless tentative at best. Wall Street completed a mixed overall performance that may have been slightly beneficial, but after six weeks of losses the fact that equities could not mount a fantastic run on a Monday isn’t a exciting signal. Today Retail Sales numbers will come from the United States and with economic information having completed cumbersome figures the past month, investors may be tailored for additional bad news. A drop of minus -0.3% is anticipated from the Retail Sales results as consumers are anticipated to show evidence of extra anxiety due to growing prices, a tender job market, and a lack of good sentiment. The USD finds itself inside a rather middling range against the EUR. The mixture of a distressed prospect for the American economy and the ongoing crisis that moves across from Europe relating to debt has fundamentally left investors feeling like they’ve been asked to dry off using a wet towel.
The overall market sentiment is varied at best at the moment and Wall Street indicates that optimism may be falling swiftly. Unless of course a sudden breakthrough of value investing begins to shift the equities appear as if they will remain under pressure. Within this context the commodities markets have also begun to show symptoms of pressure as questions about future demand have grown more noticable. Crude Oil continues to be trading in a consolidated range within the past month and the question is whether it is more likely to raise or drop. If the economic reports are any suggestion and the international economies are really beginning to sputter there exists every reason to imagine that Crude will find fewer buyers. Yes, speculation can drive the market higher or a political event in the Middle East that is unexpected can bring about nervous gains, but if the United States and Europe continue to turn in poor economic numbers Crude may find additional reasons to loss some value. Gold which traditionally acts as a safe haven has found price pressure also the past week and of this mornings writing is 1520.00 USD an ounce. The precious metal will continue to be sparked by movements with a stormy economic picture developing.
Europe was hit with an additional downgrade regarding Greek debt yesterday, on this occasion by S&P. Even while the EUR improved on Monday the Single Currency appears to have a expanding cauldron of rough inquiries appearing in regards to the probability of a Greek debt restructuring. At the same time the ECB and IMF have publically said a haircut on Greek debt obligations might have a harmful result, the fact of the matter is that most investors continue to punish the yield on Greek bonds and the debt is fundamentally deemed nothing more than junk. The EUR continues to carry onto nearly all of its value, however the question must be asked – why? The EUR has a challenging road ahead if economic data remains weak and the debt dilemma doesnt subside. There is going to be minimal information from Europe today and the target for EUR investors will continue to be Greece.
The Sterling gained like the EUR yesterday and traders will find possibilities to test the range of the GBP. Inflation statistics will come from the U.K. today together with a HPI – Home Price Index reading. The U.K. encounters the identical problems as its major counterparts and the Sterling continues to be located in what has recently been a generally EUR centric mode. The AUD did fairly well on Monday as it gained even as commodity prices were stunted. The Forex market on a whole gave varied messages on Monday and the increases produced by the AUD yesterday spotlight that ranges are now being tested. The Japanese Yen did very little on Monday and its result was located in an exceptionally tight song and dance routine.
The broad markets continue to indicate a sizable degree of anxiety and traders must be made for for short term movements and ready to make the most. Traders should view equities and commodities as a measure of sentiment.
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