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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
FTSE is on the back foot this morning following the extended week end
as the US employment data that was released on Good Friday disappointed
significantly. Any markets that were open yesterday, namely the Dow,
saw selling and whilst the FTSE enjoyed two days off for Easter that
selling has fed through to today’s session.
Even
though the non-farm payroll number was almost half what had been
expected the unemployment rate actually fell from 8.3% to 8.2%, which
probably prevented an even larger sell off in the US session yesterday.
The figure highlights Ben Bernanke’s caution in recent weeks where he
has caveated any optimism about the world’s biggest economy with his
concern for the outlook and fragility of the US labour market. In order
to really bring unemployment down there needs to be consistent figures
of 200k plus, and with the US elections at the end of this year
faltering, job creation could be the nail in Obama’s coffin, who has
continually had question marks over his running of the economy across
the pond.
This
data coupled with the focus back on the likes of Spain and Italy is
unsettling investors. Greece has seen industrial production decline
further and Portuguese banks have been going cap in hand to the ECB to
borrow more funds. This morning government bond yields for Italy and
Spain are creeping higher with the former back above 5% and the latter
edging towards 6%. These fear gauges are also reigniting the concerns
that caused economic turmoil during the summer of last year. There’s
still that grey cloud hanging over the markets that we could see a
repeat of last year where, just as it looked like things were on the
mend and confidence was returning, the next European domino could fall
bringing the recovery crashing down to earth again.
The
FTSE is at 5655 at the time of writing having been higher on the open
but it’s now testing the lows of the session so far. A downward trend
has just started to form in the FTSE and near term support is seen at
5625 and 5585 with resistance at 5740 and 5805/20.
Economic
data is thin on the ground today and remains so for the rest of the
week, so it’ll be all eyes on the US earnings season which gets underway
today in the traditional fashion of Alcoa reporting after the close
this evening.
The
euro continued its correction against the dollar after recently being
rejected from the 1.3380 resistance, but appears to have found near term
support down at the 1.3030 level. However, the on going concerns
surrounding Spain will likely keep pressure on the euro whilst the lack
of enthusiasm for further stimulus from the Fed looks to keep the dollar
well supported. At the time of writing EUR/USD is at 1.3080 and near
term support and resistance is seen at 1.3055/30 and 1.3135/60/80
respectively.
Gold
advanced $13.80 a troy ounce as traders bet that the weak jobs data on
Friday would increase the possibility of further stimulus from the Fed.
Despite the Fed suggesting that further stimulus wasn’t warranted at
the recent FOMC minutes, traders are betting that the recent run of
weaker economic data will force the Fed to engage in some form of
extraordinary monetary policy in an effort to prop up growth, weakening
the dollar and boosting the price of gold. This morning the precious
metal is at 1648.
Crude
oil continued to make new lows on Monday, following the disappointing
jobs data on Friday. Also adding to the declines are the upcoming
international talks with Iran, where traders look to be unwinding
earlier supply tightening trades. Crude oil futures for May delivery
slid 85 cents a barrel to $102.46. Despite the declines the $100 level
looks to be firm support. Brent is softening further this morning
trading at 121.90 down some 80 cents.
