Gold continues to linger near important support levels after coming off of its highs last week. The precious metal is near 1313.00 USD as of this writing. Gold could be a tempting wager for traders today at these levels. While the metal has certainly been in a bear market its recent run up may have some thinking that an additional run to test highs again is coming.
The EUR has found some takers after being taken lower on Thursday and Friday last week at the conclusion of the FOMC meeting in the States. As of this morning the Single Currency has shown some tenacity and the ability to steadily increase its value. In short, the reports issued from the Federal Reserve essentially changed nothing as Janet Yellen showed a desire to have it both ways regarding her outlook for the U.S. economy and delivering what was interpreted by many as a convoluted press conference.
The German Ifo Business Climate report will be issued shortly. This will be watched closely considering German data has missed estimates widely in the past few days, including yesterday’s German Flash Manufacturing PMI reading. While not recessionary, the German numbers have put additional caution into a marketplace that is rife with nervousness due to a complex mix of political and economic worries. If the German economy were to succumb to recessionary pressures this would be quite detrimental for all of Europe.
Data from China continues to be rather lacklustre and if the Asian giant slumps and the Russian situation escalates with further sanctions, net exporters like Germany will not benefit from such pressures.
The U.S. will publish the CB Consumer Confidence marks today along with New Home Sales. The housing data has been significantly worse than expected the past week from the States and that has been another reason among some investors who continue to doubt official government economic forecasts.
Tomorrow Core Durable Goods statistics will come from the States. Wall Street opened the week negative yesterday, but this came on the heels of gains made last week. Europe also traded weaker on Monday. Positive moves among the equities last week were interesting and held up as a victory flag for some, but Digital Markets Advisor remains cautious (and doubtful) regarding the gains the corporate front can gather over the next few months. While short-term players will no doubt continue to risk their money and chase the trend on the major indexes the notion of risk management should remain a mantra for traders.
The FX market and commodities have been testing ranges and slightly volatile the past week. The political situation coming from the Russia and Ukrainian crisis has largely been digested. While the possibility of new developments remains rampant regarding the Crimea sage, the reality is that market participants will stay fairly calm unless the threat of aggressive acts spreads into other areas.