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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
Markets are in much better shape following the EU summit at the end
of last week but there is unquestionably still some scepticism regarding
the viability of what was agreed and whether it will be enough to pull
the eurozone back from the brink. For starters, even though the Dow put
on an impressive near 300 point gain on Friday, US investors’ confidence
dropped to the lowest level for 2012 despite ongoing improvements in
the housing sector. The last session of the month culminated in the
index posting its best monthly gains for the year, and so certainly
across the pond investors seem to be more confident that this European
sticky plaster is going to work. Not only is confidence still taking a
dent but Spanish borrowing costs remain well above the 6% level and so
have barely improved things for the country. Finally, the risk on trade
from the last couple of sessions has been rather muted to say the least.
Many of the riskier stocks like the miners have simply not joined in
the party and continue to remain a drag on the indices, in particular
the FTSE due to its heavy weighting in the sector.
So as the
doubts remain it will be interesting to see how things pan out through
the summer months. With July underway we look back at how the month has
panned out for the FTSE since the mid 1980s and see that there have been
as many up months as down months, so there isn’t any clear bias for the
bulls or the bears. But the months that have seen gains are on average
much stronger than the months where losses have occurred. The month has
also been quite a volatile one in the past so maybe we’ll get more of
the same this time round, but with the Olympics only a few days away
volumes could suffer.
The FTSE is adding to Friday’s gains this
morning but with no real great conviction. At the time of writing we are
higher by 15 points to 5586 just below the resistance seen at 5600 and
5640. This has attracted some sellers who think that the resistance will
win over and we could head back down again, but a break above here
might see a test of 5715 and 5760. To the downside 5530, 5470 and 5430
are all seen as support levels.
Economic data comes in the form of
lots of manufacturing numbers. PMI surveys from the US, Europe and UK
will all be watched to see how the sector is getting on as it continues
to perform significantly under par. There’s also the EU unemployment
figure which is expected to tick higher this morning and then for the
rest of the week we gear up for the BOE and ECB rate decisions on
Thursday and the non-farm payroll on Friday.
The euro rebounded
226 pips against the US dollar to 1.2666 as the deal by the EU officials
managed to calm the markets, easing fears of an escalation in the
sovereign debt crisis. Expectations of an interest rate cut by the ECB
at its meeting this Thursday also might have supported the shared
currency. Usually a rate cut is a bearish feature but this time it could
be seen as an indication the so far reluctant European leaders are
ready to take action. This morning the single currency is at 1.2635.
The
global markets cheered the EU decision to ease the bailout rules for
banks and the feel good factor also sparked a sharp recovery in precious
metals. As the risk appetite made a comeback gold prices gained $46 to
$1597, even breaking above the $1600 mark briefly.
A commitment by
Europe to use funds for bailing out banks directly was met with a sigh
of relief by energy investors who pushed the WTI crude prices $6.50
higher to $84.96. Crude prices were the best performers in the
commodities class; nevertheless, the climb in WTI prices was accentuated
by returning fears over Iran’s threats to close the Strait of Hormuz.
