|
| Subject: 8/3/2010 - The current market sentiment
|
Posted on: Sun, 7 Mar 2010 23:35:14 +0000 (UTC)
|
The risk appetite could come back again containing the market
sentiment after losing just 20k jobs out of the farming sector in Feb
which shows the gradual pace of recovery in US pace with no signs of a
double dip recession yet. The data helped the equities markets to step
up further. The Dow which has made a correction to 9900 level in Jan
is still tending to the upside closing above 10500 last week which put
the greenback under pressure across the broad even the cable which
suffered recently from worries about its increasing debt and
quantitive easing policy could close the week above 1.51 after
reaching 1.4785 last Monday after the news about a huge bargain
between AIG and the British insurance company Prudential for buying
the Asian parts of the first for about 35$ Bln.
The market was already cheered by BOC brighter economic assessment of
the current after leaving the interest rate unchanged today which
refer to a coming tightening action and today RBA rising the interest
rate by another .25% earlier last week and the labor data could keep
the risk appetite of the investors who are widely not expecting a
falling of the economic recovery of US and they are still counting on
it .The light crude oil price has been pushed up to close above 81$ a
barrel which underpinned the gold too as an inflation mirror to close
above 1130$.
There is no new change of the European situation concerning the Greek
waiting for a change from Greece but it looks widely unsustainable to
see the Greek deficit to growth ratio above 12% while it is required
now to be back below 3% and it is widely around 6% in Europe at the
current struggling growth rates which resulted from the credit crisis
even the ECB could not stop any of its accommodative easing actions
worrying about the current nascent recovery until now keeping the
interest rate at 1% for a whole year which is still putting pressure
on the reforming plans in Greece and the single currency which could
close hardly again above 1.36 but 1.364 is still forming a resistance
in front of its progress and breaking it can be if the momentum of the
risk appetite increases this week encourage by the US recent labor
data and this can be done which can help the single currency to test
1.383 again versus the greenback which can be negatively impacted by
this risk appetite as The pair has confirmed the support at 1.344
unable to break it again.
Also, The cable which has been very vulnerable to the downside after
forming a lower peak below 1.584 resistance by the end of last month
breaking 1.51 free falling freely to 1.4785 on increased selling
momentum last week could find the support above 1.5 psychological
level from the greenback weakness to close above 1.51 again. The
pressure can come back again on it after last week massive selling to
1.4785. The cable is having now a far away main supporting level at
1.44 whereas the bottom of last April has been formed but with this
recent sever action with no containing even to keep it, the pair can
face further pressure to test 1.46 in the near term with the worries
about the political future in UK by the preliminary elections as the
conservatives' opposition party has lost its strong leading versus the
labor ruling party on the recent polls results with the exacerbating
the case of UK debt at the current higher inflation rates than Europe
as UK has started to post its first net borrowing deficit month since
the beginning of 1993 with the public sector borrowing in Jan reaching
4.3 B Stg while the market was waiting for covering 2.8 B Stg of the
debt waiting Feb data which will be closely watched as this rates can
bring its budget deficit ratio to GDP above 12% like Greece otherwise
it looks in building up in UK while the efforts are emerging for
staving off it in Greece.
God willing, it is important this week to wait for the release of US
trade balance of January to be -40.3 b$ and by the end of this week
for US retails sales of February to be up monthly excluding the auto
sales by .2% and flat broadly with auto sales and US University of
Michigan consuming sentiment preliminary reading to be 73.5 from 73.6
in February.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com |
|
|
605169. ~~~~~~~~~~~~~ COUNTRY BUFFET ~~~~~~~~~~~~~
605169
605170. A Course in Probability, Neil A. (2006) 1E Weiss Instructors solution
605171. ~~~~~~~~~~~~~ SIGNATURE FURNITURE ~~~~~~~~~~~~~
605171
605172. DONT Join Another Business Until You Read This Blog, you can keep
605173. INDUSTRY S&P, TC, LEASING - 13.01.2010 - 1st ISSUE; bitumen
605173
605174. ~~~~~~~~~~~~~ SECOND LIFE ~~~~~~~~~~~~~
605174
605175. Comprehensive Test Banks and solution manuals ~~
605175
605176. PTC Referral Secrets Free Now!!!
605176
605177. ~~~~~~~~~~~~~ DANCE CLASSES ~~~~~~~~~~~~~
605177
605178. Comprehensive Test Banks and solution manuals ######
605178
605179. ~~~~~~~~~~~~~ KT TUNSTALL ~~~~~~~~~~~~~
605179
605180. ~~~~~~~~~~~~~ FIREPLACE GRATE ~~~~~~~~~~~~~
605180
605181. Introducing Poken Take your Social Network Offline
605181
605182. CA State Tax Filing Requirements
605182
605183. great PTC site no minimum to cashout!!!
605183
605184. Tanker dwt10-12K - ship wanted
605184
605185. MEPs grill would-be Commissioners - EUbusiness Week 473
605185
605186. ~~~~~~~~~~~~~ FLOOR PLAN ~~~~~~~~~~~~~
605186
605187. Accounting for Decision Making and Control 6th,Zimmerman Solution
6
605188. ~~~~~~~~~~~~~ BEAUTIFUL GIRL ~~~~~~~~~~~~~
605188
| |
