A huge week of data is in the cards from the States this week. Today Pending Home Sales will be released. Tomorrow the CB Consumer Confidence marks will be published. Wednesday will have the Advance GDP numbers. And on Friday not to be out done are the Non-Farm Employment Change numbers.
Europe will be offering up inflation numbers as the week progresses from Germany among others. Also late Thursday night, early Friday morning for European traders China will present its Manufacturing PMI statistics.
The markets remain rather cautious due to geo-political tension, the major currencies continue to show signs of having their short-term values tested against the USD as both the EUR and GBP languish near support levels. Gold as of this morning is near 1307.00 USD having gained a bit of value and showing that some investors may actually be looking for safe havens. Crude Oil will be in focus this week to not only because of questions surrounding demand, but because of continued tensions in the Middle East.
Wall Street stumbled on Friday, but its results cannot be chalked up to a lack of risk appetite yet in the equity markets. Major bourses have continued their crawl upwards as central banks have made cheap money available across the table and corporate shares an attractive investment opportunity. While PE ratios remain questionable, investors have not shown much in the way of taking their foot off the gas pedal as of yet.
The week will be important also because many European investors tend to start taking their holidays at the beginning of August, meaning volumes could be in flux. Traders are likely to find volatility increase this week and they should use risk management carefully. Digital Markets Advisor expects to see FX pairs show quite a bit of movement this week as values are gauged and considered taking into context the concerns surrounding the European, U.S., and China’s economic stability and the combination of geo-political problems that are heightened.