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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
It’s
budget week and already there are leaks ahead of Wednesday when the
Chancellor probably has his last chance to really try and give the
economy a boost before the next general election. There’s almost
certainly going to be an element of what he gives with one hand he takes
with another by giving a little bit away here and then taking something
back in an attempt to appease all members of the coalition. It’s
guaranteed that the opposition will try to grab the headlines if George
does reduce the contentious 50p tax rate claiming that he is pandering
to the rich, but other measures are expected to try and give lower
income earners a boost whilst at the same time preventing people from
avoiding stamp duty on the purchase of homes.
These
though are hardly jaw dropping measures to boost growth and whilst the
politicians will bicker over who’s worse or better off as a result, the
real difference can be made by building things. By speeding up
construction projects and making it easier to start such things will be
the near term tonic that the UK so desperately needs to give the economy
a kick start. The private sector is showing signs of life as indicated
by the PMI surveys which still remain in expansion territory, but to be
able to take up the slack from the public sector job losses the flat
lining economy needs more of a pick up. Wednesday is a big day for our
Chancellor and it’s more important than ever for him to get things
right. If we do benefit from a pick up in activity and normalisation of
growth on the continent then we want to be best positioned to take full
advantage.
The
FTSE is commencing the week on the back foot as the index continues to
hover sideways and simply cannot seem to overcome the near term
resistance levels. The 6000 mark still hasn’t been overcome and this
morning’s sell off so far was not expected ahead of the open. Even the
German Dax which has seen considerable strength in the last few weeks is
seeing a bit of selling pressure early on. The Dax though still
remains in a solid short term uptrend however important support levels
are not seen for some time until below 7000, if this selling starts to
pick up momentum. It’s hard to see this as being the start of a
possible larger sell off since every time any correction has taken place
in the past few months, it has been met very soon after by buying. For
the FTSE over the near term support is seen at 5915, 5890 and then 5860
whilst resistance is seen at 6000, 6020 and 6050.
Economic
data really is thin on the ground today with nothing major to report so
we have to wait until tomorrow when we get UK inflation numbers.
FX
traders long of the euro enjoyed a rally against the dollar on Friday,
after the University of Michigan consumer sentiment index fell, as did
industrial production. The poor data figures were enough for traders to
lose their appetite for the US currency. The single currency jumped
around 140 pips to 1.3186, although that has proven to be short lived as
the pair has fallen nearly quarter of a percent this morning, trading
at 1.3145. The expectation is that if the Fed avoids a third round of
quantitative easing, favour will be back with the dollar in no time.
The
gains in the price of gold were rather thin on Friday, with a weakening
US dollar putting a low ceiling on any hike. The reason behind the
small rally was a proposed doubling in the import duty on gold to 4% in
India - the largest consumer in the world - by the Finance Minister
Pranab Mukhejee. So by the end of the session the yellow brick was
showing an extra 1.9 dollars at 1659.1, which at time of writing has
been cleaned off, as gold is trading at 1656.2.
The
usual suspects were behind the drive in crude prices on Friday, with a
lower US dollar and higher equity markets helping black gold post a
gain. Additionally, energy investors were kept optimistic by the news
that US inflation was on track as consumer prices rose less than initial
estimates. At time of writing, Brent crude trades at 125.23.
