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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
US
markets continue their climb with the S&P hitting its highest level
in almost four years. Yet European indices and certainly in the case
of the FTSE, still don’t seem to be following their lead. The London
market is lagging behind its counterparts stubbornly refusing to break
through resistance and still the 6000 level remains elusive. Investors
have been given a little bit of a reality check as mining stocks
struggle to make any significant gains on the back of the warnings
surrounding the Chinese economy and these are the real growth story
shares, the heavyweights that have been behind much of the rally thus
far. Since the FTSE has a large chunk of miners in it, the index is
heavily reliant upon them.
The
market has literally gone sideways this week and some of the thin
volume could be contributed to it being Cheltenham week. Today is Gold
Cup day at the race festival and so it’s unlikely that we’ll see volumes
pick up and there is not a huge amount to write home about when it
comes to economic data releases. But there is the release of US
consumer prices at lunchtime and then we end the week with Michigan
confidence figures. Since the rally is being purely driven by the Dow
and S&P the bulls are expecting them to carry on higher.
The
German Dax does seem to be making best attempts to follow the US
indices higher as it is now firmly above the 7000 level at 7150 this
morning. For the FTSE we’re flat to slightly lower on the open at 5940
and as mentioned if it wasn’t for the mining sector just keeping the
index in check, we would probably be sailing above 6000.
In
the absence of any major market moving news and with many people off at
the races, the headlines are filled with an ex-Goldman banker’s
revelations about the firm’s business practices and treatment of its
clients. In this day and age of banker bashing this is going to do
little for the banking sector to ingratiate itself with an ever critical
public. As mentioned in this comment before investment banking is
going through a big overhaul including mass redundancies. It is not
hugely surprising to see one of these people mention something about
their take on the working environment in some parts of the industry, but
this is not a time where such bad PR is going to do much help.
Currency
markets are rather flat this morning and for now the single currency is
still managing to hold onto the 1.3000 level against the dollar. There
still seems to be a slight shift towards the dollar at the moment
although this morning the greenback bulls are just taking a breather.
EUR/USD is at 1.3080 at the time of writing so traders will be focusing
on support and resistance seen at 1.3000, 1.2970 to the downside and
1.3120, 1.3155 to the upside.
For
USD/JPY which has seen impressive gains in the last few weeks a big top
looks to have formed in early trade yesterday around the 84.00 level.
At the time of writing USD/JPY is at 83.50 and near term support and
resistance is seen at 83.15, 82.80, 82.60 and 83.85, 84.20
respectively.
Gold
seems to have found some support around the 1640 level and is at 1655
this morning. Considering how much geopolitical tension is built into
the price of oil it is a surprise to see this hasn’t translated into
strength for the yellow brick. The real worry for the bulls is that the
recent recovery of the dollar has been signalling a possible end to the
amazing rally in gold over the past decade or so. Many bulls still
believe this is merely a blip as part of the next big move higher, but
that can only really come if the Fed becomes more bearish and gives
greater hints that QE3 is on the way.
Brent
continues to hover near its highs and is at 123.20. As mentioned the
price is still loaded with geopolitical tension and consumers and
businesses are wishing that these tensions are eradicated, which if they
are could see the black stuff decline sharply. With prices at the pump
creeping ever higher the squeeze for motorists is becoming a real
problem and will affect the wider economy if it continues.
