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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 markets seem to be defying gravity at the moment as they brushed
off the weaker than expected US GDP figures on Friday and managed to
post a half decent gain ending the week where they had started off
following a turbulent few days that saw many of the major macro issues
return to the forefront. Spain’s woes continued with unemployment
hitting the 25% mark whilst at the same time being downgraded by S &
P which acted as a reminder that all is not well in the eurozone. Over
the week end protests against the government’s austerity measures took
place across the whole country. For now the protests have been peaceful
but it’s almost certain that there’ll be more to come in the future and
it will be very interesting to see whether they evolve into Greek style
demonstrations.
The last couple of years have served to show that
austerity is not the only answer to the debt crisis and when it is
imposed it needs to be done hand in hand with growth stimulus. There’s
no denying that profligate government spending is in dire need of
cutting back even further than most of the proposed plans, but when it
is being done at the same time as curtailing bank lending, then
economies are going to be suffocated.
In the UK we’ve also seen
the evidence as our economy dipped back into recession and now voters
are seriously out of love with the Tories who are footing the bill for
all the recent political clangers. It’s amazing how a few headlines
about granny/pasty taxes and an inquiry into telephone hacking can turn
large swathes of voters against you in such a short space of time. With
the austerity still to come and further government spending cuts
planned it will be near impossible to win voters back unless the
government can actually do something meaningful to make is easier for
businesses to invest and grow as opposed to tinkering around the edges.
It wasn’t all that long ago that the majority of people were in favour
of the cuts but now that’s all changed.
This morning the FTSE is
hovering around recent highs finding the resistance around the 5800
level just a bit of a hurdle for now. Trading at 5778 at the time of
writing there’s no rush to the exit for investors and considering the
recent strength an attempt at breaching the resistance can’t be ruled
out.
This week sees European finance ministers meet to talk about
the new European wide banking rules. Consensus is unlikely to be
reached this Wednesday as growing disagreement from other member states
including the UK is likely to push the discussions into the following
month.
We saw a rise in the EUR/USD pair to 1.3270, a level last
seen on April 3rd with the session finishing 64 pips up at $1.3252. On
the surface, it defied the odds as Spain’s credit rating was downgraded
with unemployment reaching 24.4% an 18 year record. Nonetheless, the
lower than expected US GDP growth rate might have just convinced enough
investors that QE3 is a distinct possibility and that could have been a
more bearish outlook for the greenback on a relative basis.
One
more in favour of easing the monetary policy even further was possibly
the perception on Friday after the US economy grew less than consensus.
Buying gold as a hedge was understandably triggered especially when the
greenback weakened. So the precious metal continued its rally, gaining
$4.9 for the day to $1662.3.
Following a weaker than anticipated
US GDP growth, the WTI crude prices were on the back foot initially.
However, the usual suspects, a rebounding equity market combined with a
lower US dollar reversed the daily trend pushing crude prices into
positive territory, 83 cents up to $104.93. In addition, some of the
energy investors might have chosen to close their short positions
established in the morning, unwilling to stay exposed over the weekend.
