The EUR has continued its upward trend in value as of early trading this morning. The Single Currency now finds itself in territory not seen since the last lull of skepticism about the financial crisis in Europe. The German Ifo Business Climate reading will be published shortly and it has an estimate of 103.1. Today’s result from the workhorse of Europe will be of keen interest, the German ZEW Economic Sentiment marks earlier this week were strong. Yesterday’s Manufacturing and Services Flash PMI reports from Germany beat their forecasts also. It should be added however that French outcomes via the PMI data were worse than expected and shows that France is in a recessionary mode.
The broad markets are brushing cynics off and appear to be in a rush to join a bulls parade. (Skeptics will no doubt remind optimists what bulls leave on the ground and occasionally is stepped on by traders when they aren’t paying enough attention). And, yes, in the meantime there are certainly some among the crowd who would love to create a stampede towards glittering lights. Is the Federal Reserve and ECB among them? It is a fair question.
Gold as of this morning is trading at the weaker realms of its range. The price for the precious metal is around 1671.00 USD as of this writing. Crude Oil – WTI – continues to see a speculative force within its arena and is at highs.
The JPY has weakened the past couple of days once again, this as comments from the BoJ have seemingly been disregarded. The Nikkei is certainly trading near its highs and has gained strongly today. For the time being Prime Minister Abe has accomplished a win in his very own version of the confidence game. From the U.K. GDP numbers will be published and the estimate is minus -0.1%. The GBP has been underperforming when compared to the EUR in recent trading.
The U.S. will release New Home Sales figures today. Yesterday’s Flash Manufacturing PMI did beat expectations with a result of 56.1. The USD continues to take a back seat and lose value against many currencies as investors continue to show a rather strong taste for risk. Asian bourses and their global counterparts are turning in gains among the major indexes it must be said. Among quarterly earnings reports from the States today will be Halliburton, Kimberly-Clark, and West Bancorp.
Commodities present an interesting broad view of the current marketplace. Many physical resources are trading near their short-term highs, but significantly their broad indexes remain below September and springtime highs. This could indicate that within forex, commodities, and equities that room exists for further gains among risk assets going into the weekend as investors begin to join the herd mentality.