More than a handful of respected analysts have looked at recent GDP data from Europe and pointed to the continent with a confident hand and have stated that Europe is healing from the crisis and recession. While we agree open wounds are not as prevalent, Digital Markets Advisor continues to believe that banking and other industries in Europe remain frail and that what is being called a recovery has more to do with the onslaught of stagnation, this as corporate institutions have found ways to survive but not thrive.
Current economic policies from Europe if held onto will keep nations from falling off the cliff. However, they will do little to create solid growth prospects that achieve full employment, nor full opportunity. In essence Europe it appears in many respects content to be ‘content’. Long-term the problem is that Europe under this guise may continue to lose jobs and any competitive advantages it has to others.
The U.K. today will release the results from the MPC Official Bank Votes, no real surprises are expected, the Unemployment Rate data will also be published. Yesterday’s CPI, PPI, and HPI data from the U.K missed their estimates. A 10-Y Bond Auction will be held for Germany. Later today housing statistics will come from the States.
Global bourses turned in mixed results yesterday. Wall Street was rather lackluster on Tuesday. As of early this morning the Nikkei has been negative.
Gold came off of its highs last night and as of this writing the precious metal is near 1317.00 USD. Gold has done very well the past week and speculators should be careful about volatility. Bears having been in control of the market for well over a year will be watched closely to gauge their ability to take the metal lower again.
The EUR has held onto its gains throughout early trading today and is testing short-term resistance. The Single Currency continues to find takers but at these higher values, some traders may find it tempting to short – but be aware of the trend.