On one hand risk is still a force within forex and the EUR maintains its nifty short-term highs. On the other hand, trading signals show that something is taking place in the Gold market as its price continues to test short-term lows. The two, the Single Currency and the precious metal, are typically trading in tandem against the USD, but trading has been divergent for a duration now and this must be paid attention. Gold as of this writing is around 1668.00 USD per ounce.
The equity markets have run into obstacles as of late yesterday, when news began to filter through via Washington D.C. that the ‘fiscal cliff’ remains a political football. President Obama raised the stakes in the budget ‘poker game’ when he let it be known that he is ready to veto the proposed mandate unless Republicans bend in favor of more Democratic demands. Expect this story to continue into the weekend with the perception that the clock has not quite run out of time yet.
Retail Sales figures from the U.K. today confirmed yesterday’s CBI Realized Sales reading. This morning’s report was not encouraging as it turned in no gains compared to the expected 0.3% increase in sales. Consumers continue to display signs that not all is well in Britain and that growth remains challenging and pocketbooks tight. The U.S. will release a slew of reports today, the weekly Unemployment Claims, Final GDP, Existing Home Sales, and the Philly Fed Manufacturing Index. Together with talk about the ‘fiscal cliff’ and the possibility that one ‘bad’ economic report could emerge, there is the possibility of a dynamic trading session taking place today.