Full volume is firmly back in the broad markets as of this morning. The Brits and Americans return to their offices and will have an impact on the day after a long holiday weekend.
Gold as of this morning continues to trend lower. The precious metal is near 1283.00 USD currently. The EUR is also testing support levels against the stronger USD.
Chinese data earlier today once again raised question marks with rather lacklustre numbers. On top of that the Europeans last week did not add to investor confidence with rather uninspiring data from PMI marks.
The U.S. will release important Core Durable Goods Orders numbers today and the estimate is calling for an outcome of minus -0.5%. That will be followed by the S&P/CS Composite-20 HPI. Not to be outdone the CB Consumer Confidence reading will be published one hour later and could serve as a good barometer for the U.S. economy.
China later will release GDP numbers early tomorrow morning. The Chinese figures have been rather troublesome for a while and many analysts including Digital Markets Advisor continue to question the statistics being brought forth by the government.
Today marks in one sense the beginning of summer trading and market psychology will be examined as investors look at their comfort levels and weigh them against results already made this year. Meaning that equities which have done relatively well for many traders may start to see increased volatility as record highs and resistance levels are tested.
Gold and the FX markets may continue to find themselves under pressure today with the influx of additional money on the table as all major institutional offices get back into the game. The GBP and JPY are at interesting junctures too and must be watched carefully the next few days. Chinese data will have an impact on the Yen and Asian investor risk appetite. Sterling remains at curiously high values and some investors might be tempted to test its range which is nearly in the middle of its one month chart.