The EUR has maintained a stronger realm to begin this week. After negative data from PMI reports in Europe via Germany and France the Single Currency has maintained its value. Now that may seem strange to some who are trying to trade in the FX markets, but it does show that an overwhelming reason for this is the fact the Federal Reserve in the States does not seem like it will be able to do anything with its interest rates for the foreseeable future, thus keeping the USD the weaker link in most FX pairs.
Flash PMI data from the States on Monday was a bit better than expected, but yesterday’s S&P/CS Composite-20 HPI came in below expectations. And while New Home Sales were better on Tuesday, at the same time the previous month’s total was revised downward. Meaning that the housing sector remains under significant suspicion and a problem for the U.S. economy.
The German Ifo Business Climate reading yesterday also did not meet expectations and this indicates that Europe continues to be deeply mired within an immense stranglehold of stagnation. Today the U.S. will release Cored Durable Goods Orders and the Final GDP results and both could be impactful with any surprises.
Gold is trading slightly lower this morning. The precious metal is near 1314.00 USD currently. It should be noted that a large mining strike in South Africa was finally concluded last night. While this could have an effect on Gold, Platinum, and Palladium it should be said that it will take at least six months before production levels get back to normal. Gold has been within an almost two-year bear market now. Metals should be watched carefully in the coming days by commodities traders.
Crude Oil prices have remained stable, but WTI remains at the upper levels of its range and with Iraqi political news still a vast wildcard, traders remain speculative.
Wall Street turned in a negative session on Tuesday, but the major indexes remain very highly valued and investors must judge their fear of heights carefully.
Among the FX pairs the GBP continues to impress, but is now in a range trading mode as many traders are likely finding a desire to test resistance levels quite tempting. The JPY has also kept its stronger pace against the USD. The U.K. will release CBI Realized Sales soon. Tomorrow BoE Governor Carney will speak. The U.K. continues to be one of the brighter economic stars and its interest rate might be the first among the majors to increase when the time comes.