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I'll be posting regular market updates from well respected Forex experts and showcasing the best Forex advice and systems, so you don't have to waste fruitless hours searching for it yourself!
Add me to your 'Favourites' now and as a special thank you, I'd like to give you 4 fantastic FREE gifts by simply entering your details on the right of this page >>>
You'll receive my 3 Part Ebook series 'The Forex Decoder' which covers everything from the history of Forex, to revealing the most consistently profitable indicators you'll need in your Forex arsenal. I've sorted the 'wheat' from the 'chaff' so you don't have to make the same mistakes as I did when I first started.
You'll also receive a copy of Mark Nelson's famous '7 Habits Of A Highly Successful Trader' which will prove an indispensible aid in your Forex career, as it has done in mine.
Just enter your details on the right and get these 4 fantastic gifts absolutely for FREE >>>
Yours 'Forexly',
Cliff
Simon Denham's Daily Market Comment
Over the near term the FTSE has formed a double top around the 5970
level which is the major hurdle for the bulls at the moment. The
markets seem to have trended sideways for the last few days and weeks
with the upside momentum looking to have dried up. It’s not a big
surprise considering the good start to 2012 that we’ve had so far,
markets don’t continually go up in a straight line.
This morning the FTSE is just hovering above the 5900 level, down some 30 points as the G20 meeting over the week end disappointed. The non European members of the G20 said to the European members in no uncertain terms, put up or shut up. We still have the political stalemate in Europe whereby Germany’s current leader will not get its bazooka out for fear of giving up further political ground to her opponents when she is already reliant on a coalition to pass votes on European bailouts. By giving in and saying that Germany will stump up will could easily cost Merkel the next German election in the autumn of next year. But other nations around the world will simply not inject any more funds into the IMF in order to prop up the eurozone when large parts of the region remain woefully uncompetitive and profligate. This week sees a European summit that is aimed at putting these G20 members’ minds at rest as Europe aims to finalise new fiscal rules, but as we’ve seen in previous summits gone by, there’s no guarantee that an accord will be reached.
It’s not as if risk aversion is truly off the cards at the moment since the euro remains strong compared to others. This is most likely because of the impending second round of cheap loans that are due to flood the European banking system on Wednesday as LTRO II gets underway. This is one of the major events of the week and investors will be watching closely to see just how much will be lent by the ECB. Not only is the amount an important factor but which banks belonging to which countries will be taking up the cash. Italy, Spain and France made up the majority of those hungry for the funds, so it will be interesting to see just how much they participate on Wednesday.
Other factors preventing markets from scaling to new highs are the ongoing geopolitical tensions in the Middle East. The price of oil has been gradually rising throughout February and hit new record highs in sterling and euro terms. Prices at the pump have never been higher and this is crippling many motorists and businesses. There are lots of calls for the Chancellor to do something by reducing duty on fuel, but even if he did, he can’t actually bring the price of oil down himself. A few pence off the price of a litre could easily be wiped out in an instant by further crude price rises.
Traders long of the euro watched their bets rally as optimism was still the theme on the back of a successful Italian bond auction last week. There was also positive consumer sentiment data and better than expected US home sales, which encouraged traders to move out of safer currencies such as the dollar. The euro is now close to the 1.35 level and trading at levels not seen since last December. This morning there has been a bit of profit taking from long EUR/USD positions and is trading around 1.3429.
During recent weeks, investors have seen many factors driving on gold’s price. A weaker US dollar has increased demand for the precious metal along with tensions in Iran and not to mention lingering concerns over the European debt crisis situation which was allowed up for some fresh air last week. After four consecutive days of gains and a three month high reached last week, it appeared traders wanted to bank their profits ahead of the weekend meaning the precious metal closed down at 1772.0, nevertheless still up 13 per cent since the turn of the year. At time of writing, the pull back is still going, with the yellow metal trading down at 1770.6.
For black gold, the main driver at the moment is the ongoing tensions in Iran, with fears of supply disruptions sending crude prices soaring to a nine month high on Friday. Overnight though trade in Brent could not hold those levels and traders who thought maybe the rise was a tad overdone decided to rid some of their positions, meaning that the price of a barrel is now at 124.52.
http://www.capitalspreads.com/simon-denhams-daily-market-comment
This morning the FTSE is just hovering above the 5900 level, down some 30 points as the G20 meeting over the week end disappointed. The non European members of the G20 said to the European members in no uncertain terms, put up or shut up. We still have the political stalemate in Europe whereby Germany’s current leader will not get its bazooka out for fear of giving up further political ground to her opponents when she is already reliant on a coalition to pass votes on European bailouts. By giving in and saying that Germany will stump up will could easily cost Merkel the next German election in the autumn of next year. But other nations around the world will simply not inject any more funds into the IMF in order to prop up the eurozone when large parts of the region remain woefully uncompetitive and profligate. This week sees a European summit that is aimed at putting these G20 members’ minds at rest as Europe aims to finalise new fiscal rules, but as we’ve seen in previous summits gone by, there’s no guarantee that an accord will be reached.
It’s not as if risk aversion is truly off the cards at the moment since the euro remains strong compared to others. This is most likely because of the impending second round of cheap loans that are due to flood the European banking system on Wednesday as LTRO II gets underway. This is one of the major events of the week and investors will be watching closely to see just how much will be lent by the ECB. Not only is the amount an important factor but which banks belonging to which countries will be taking up the cash. Italy, Spain and France made up the majority of those hungry for the funds, so it will be interesting to see just how much they participate on Wednesday.
Other factors preventing markets from scaling to new highs are the ongoing geopolitical tensions in the Middle East. The price of oil has been gradually rising throughout February and hit new record highs in sterling and euro terms. Prices at the pump have never been higher and this is crippling many motorists and businesses. There are lots of calls for the Chancellor to do something by reducing duty on fuel, but even if he did, he can’t actually bring the price of oil down himself. A few pence off the price of a litre could easily be wiped out in an instant by further crude price rises.
Traders long of the euro watched their bets rally as optimism was still the theme on the back of a successful Italian bond auction last week. There was also positive consumer sentiment data and better than expected US home sales, which encouraged traders to move out of safer currencies such as the dollar. The euro is now close to the 1.35 level and trading at levels not seen since last December. This morning there has been a bit of profit taking from long EUR/USD positions and is trading around 1.3429.
During recent weeks, investors have seen many factors driving on gold’s price. A weaker US dollar has increased demand for the precious metal along with tensions in Iran and not to mention lingering concerns over the European debt crisis situation which was allowed up for some fresh air last week. After four consecutive days of gains and a three month high reached last week, it appeared traders wanted to bank their profits ahead of the weekend meaning the precious metal closed down at 1772.0, nevertheless still up 13 per cent since the turn of the year. At time of writing, the pull back is still going, with the yellow metal trading down at 1770.6.
For black gold, the main driver at the moment is the ongoing tensions in Iran, with fears of supply disruptions sending crude prices soaring to a nine month high on Friday. Overnight though trade in Brent could not hold those levels and traders who thought maybe the rise was a tad overdone decided to rid some of their positions, meaning that the price of a barrel is now at 124.52.
http://www.capitalspreads.com/simon-denhams-daily-market-comment
