Chinese GDP proved disappointing this morning continuing a trend that should worry economists who have been banking on the Asian powerhouse to drive demand. While Asian bourses have reacted with a shrug thus far in early Monday trading the news will not be viewed well in places counting on the notion that China will be a magic pill for what ails the global economy. Japan is closed for a holiday today.
Gold as of this morning is near 1284.00 USD, which is not far from its marks on Thursday. The precious metal has seen some volatility but has shown an inclination to consolidate as traders circle the wagons and await the next massacre.
There will be important data releases this week internationally. Retails Sales figures and the Empire State Manufacturing Index top the list today from the States. Tomorrow the German ZEW Economic Sentiment reading will be published and this will prove an interesting gauge for Europe which continues to produce recession like data outcomes far and wide.
Highlighting the week may be the testimony that will be provided by Fed Chairman Bernanke in front of the House Financial Services Committee on Wednesday. Wall Street continues to march ahead seemingly unimpeded by doubts which apparently are being kept deep within the confines of the subconscious of financial houses tucked away for rainy days to come when they can say, “I told you so”.
As the midway point of summer approaches, the forex market has shown the tendency to add value to the EUR and GBP in the past week. The AUD continues to be a landmine as physical resources for the most part remain under pressure and leaves a wake of injured who continue to search for a bottom from the Australian currency. Crude Oil is proving more than interesting. The run up in value for WTI must be watched carefully and its price looks quite lofty at these levels, particularly when equated into the total energy sector which relies heavily on industrial and manufacturing outputs for its demand. Meaning that Digital Markets Advisor believes Crude Oil appears within the grasp of a strong speculative play by market forces that are squeezing anyone unfortunate to be on the wrong side of the trade.