The broad markets have essentially clung to the gains made before going into last weekend. The EUR/USD remains at the upper reaches of its value and short-term traders may be eyeing an attempt at selling the Single Currency at these levels. Gold is near 1616.00 USD as of this afternoon GMT. Commodity prices and equities have also kept their values intact.
Yesterday’s Halifax HPI from the U.K. slightly missed its estimate with a minus -0.6% result. This morning’s Manufacturing Production data from Britain came in with an unimpressive figure of minus -2.9% compared to the forecasted decline of -4.0%. German Factory Orders proved quite negative with a mark of minus -1.7%, doing worse than an expected minus -0.9%. Consumer Credit data is coming from the States later today. Tomorrow German Industrial Production statistics will be brought forth. It must be noted that poor economic results have become so commonplace from Europe that they hardly seem to be noticed. Bad numbers have been ‘cooked’ into current values in the broad marketplace.
Economic data will remain rather quiet the remainder of the week, not to say there isn’t further data coming but investors will have their eyes on quarterly earnings from the United States and this will likely have an effect on sentiment for global bourses. Most investors will be overjoyed to have a rather tranquil week of news flow. Having said that, Sovereign Debt yields will have to be monitored from Germany and its lesser counterparts for any tsunamis.
The broad market has been less volatile the past few sessions and this will give traders the ability to test trends and take advantage of Forex rates that may be inclined to range for the time being.