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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
The
first round of the French elections has thrown up a few surprises and
indicates voter dissatisfaction for the mainstream politicians as
parties on the far left and right benefit from voter delusion. French
elections have often thrown up surprises in the past, and even though
Hollande is ahead in the polls to win the head to head run off with
Sarkozy it could be a very tight call. Only ten years ago the National
Front’s leader, the incumbent’s father, knocked the main socialist
candidate spectacularly out of the race in the first round to hand an
easy victory to Jacques Chirac. The next fortnight will be very
interesting to see whether the support for the far right will assist
Sarkozy in winning a second term but he will have to fight hard to win
them over. One tactic will be to get the message across that, without
their support, the alternative is the first socialist government for
seventeen years.
But it’s not just a question of left and right with France, but Europe or not. Many of Hollande’s and Le Pen’s supporters are being attracted by their more euro-sceptic stance, whereas Sarkozy has been in the thick of Europe throughout his past 5 years in office. If the incumbent President looses in just under two weeks then it could be more to do with an anti-Europe vote than anything else.
The polls currently suggest that Hollande will breeze into the Élysée Palace and this will see significant change for France. His policies aim to reverse much of the work that Sarkozy has done to make France more competitive, calling for mass government spending via increases to the minimum wage, raising the retirement age and then viciously attacking the country’s banking sector and rich individuals.
Financial markets will not like these moves and already this morning they are looking a little nervous with the French Cac down almost as much as 2%. French ten year government bond yields are also slightly higher. The risk aversion this morning is not only down to the first round French elections as Chinese manufacturing data showed that the world’s second biggest economy is seeing its manufacturing sector contract. At the time of writing the FTSE is bang on the 5700 level and has broken up the recent short term upward trend that it formed in the last couple of weeks. This area where it is currently trading is a key support level, but looking at the German Dax, which really is in sell mode, it may not hold for long.
The euro is also in sell mode this morning after spending the last three sessions going nowhere, EUR/USD moved up on the last trading day of the week largely on positive comments by the ECB President Mario Draghi. He said that Spain and Italy had made remarkable progress in addressing their structural problems, discarding calls from the IMF and US Treasury for further actions. The move back above the 1.3200 has not lasted long however with EUR/USD trading at 1.3140 at the time of writing.
Gold closed marginally lower at $1642.09 in a very tight range as most investors waited on the sidelines. After testing $1680 unsuccessfully on April 12th the precious metal started to retrace, and if buyers continue to delay their comeback into the market we could see a challenge on $1620 soon, especially when gold failed to reach $1650 in the last session. At the time of writing the precious metal is at $1632.
Although Brent crude oil managed to gain 75 cents on Friday ending at $118.76, its weekly performance was negative. There are concerns over the short term trend for the bulls as ongoing worries regarding the health of the European economy puts downward pressure on the near future oil demand. If the support turned resistance just above $120.00 continue to hold we could see a move towards the recent lows around 117. This morning Brent is a little lower at 118.20.
But it’s not just a question of left and right with France, but Europe or not. Many of Hollande’s and Le Pen’s supporters are being attracted by their more euro-sceptic stance, whereas Sarkozy has been in the thick of Europe throughout his past 5 years in office. If the incumbent President looses in just under two weeks then it could be more to do with an anti-Europe vote than anything else.
The polls currently suggest that Hollande will breeze into the Élysée Palace and this will see significant change for France. His policies aim to reverse much of the work that Sarkozy has done to make France more competitive, calling for mass government spending via increases to the minimum wage, raising the retirement age and then viciously attacking the country’s banking sector and rich individuals.
Financial markets will not like these moves and already this morning they are looking a little nervous with the French Cac down almost as much as 2%. French ten year government bond yields are also slightly higher. The risk aversion this morning is not only down to the first round French elections as Chinese manufacturing data showed that the world’s second biggest economy is seeing its manufacturing sector contract. At the time of writing the FTSE is bang on the 5700 level and has broken up the recent short term upward trend that it formed in the last couple of weeks. This area where it is currently trading is a key support level, but looking at the German Dax, which really is in sell mode, it may not hold for long.
The euro is also in sell mode this morning after spending the last three sessions going nowhere, EUR/USD moved up on the last trading day of the week largely on positive comments by the ECB President Mario Draghi. He said that Spain and Italy had made remarkable progress in addressing their structural problems, discarding calls from the IMF and US Treasury for further actions. The move back above the 1.3200 has not lasted long however with EUR/USD trading at 1.3140 at the time of writing.
Gold closed marginally lower at $1642.09 in a very tight range as most investors waited on the sidelines. After testing $1680 unsuccessfully on April 12th the precious metal started to retrace, and if buyers continue to delay their comeback into the market we could see a challenge on $1620 soon, especially when gold failed to reach $1650 in the last session. At the time of writing the precious metal is at $1632.
Although Brent crude oil managed to gain 75 cents on Friday ending at $118.76, its weekly performance was negative. There are concerns over the short term trend for the bulls as ongoing worries regarding the health of the European economy puts downward pressure on the near future oil demand. If the support turned resistance just above $120.00 continue to hold we could see a move towards the recent lows around 117. This morning Brent is a little lower at 118.20.
