Today it was the turn of the German Ifo Business climate reading to disappoint investors. A mark of 104.7 has been recorded, while an estimate of 105.9 stood. The U.S will publish important New Home Sales numbers in a few hours. The housing sector is not being looked to as a savior in the States (nor globally) at this time.
The EUR has essentially consolidated the past two trading sessions and it may provide traders an opportunity to test short-term moves without too much fear of a major break. The GBP has gained the past 24 hours and continues to exhibit that it has some room to move upwards. The AUD like the EUR continues to linger near important support levels. The Australian economy has been lackluster and the prices of physical resources have not been stellar.
Digital Markets Advisor feels that the FX market will continue to be rather volatile straight through the fall season and going into winter. Forex pairs have seen plenty of movement the past month and this is likely to keep pace as go-political gyrations and global economic conditions remain troublesome. There is a major election coming from the States in early November, the Russian/ Ukrainian situation simmers, and the Middle East remains in the news. As for pure fundamental data China and Japan continues to show they are under stress as the knock on effects from lower demand from Europe (and the States?) hits the bottom line of exporters.
Gold as of this writing is near 1224.00 USD. The precious metal continues to be in the deep end of a brutal bear market. Gold bugs may believe the metal is vastly oversold, but inflation worldwide remains rather tame and without a strong speculative flair Gold is likely to remain under more pressure.
Tomorrow the States will publish Durable Goods data and the U.K. will release CBI Realized Sales. Both of these reports will give further fundamental info to investors looking for signs of life in both economies. Wall Street and other bourses however continue to maintain very high values and are causing unease among a wide range of investors. First there are the investors that have missed this huge bull run upwards because they simply did not believe the values were based on good data, and then there are the investors that have profited greatly but have not cashed out and are wondering how long they should remain in the game.
While money remains cheap from the likes of all major central banks and this has given investors little in the way of other opportunities to put their risk capital, the question is if and when investors should cash out or if they should try to remain seated on the back of the bulls parading down Wall Street even if concerns for safety are numerous.