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15/4/2009 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, Apr 15, 2009.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
    Likes Received:
    The mixed CPI figures could not enable the gold to break above 900$. The figures excluding the food and energy came higher than expected at .2% m/m and 1.8% y/y and the market was waiting for .1% m/m and 1.7% y/y but the broad figures came down by .1% monthly and .4% yearly ensuring the deflation pressure in US following yesterday PPI release of the same month which came lower than the market expectations of -2.2% yearly and 0% m/m at -3.5%y/y and 1.2% monthly.
    NY Empire state manufacturing index came better than the market expectations of -35 at 14.65 but the total industrial productions came down monthly by 1.5% and the market was waiting for it to be down by just .9%.
    The total TIC net capital inflows of Feb were down by 97b from 148.9b on Jan but the net long term TIC flows were 22b up from 43b on Jan but lower than the market expectations of 27b.

    The cable is still well supported after breaking out above 1.48 earlier in the beginning of the week after trading between 1.479 and 1.458 by the Easter holidays but it has been met by profit taken directly after crossing it today which lead it to 1.492 and it is trying now to get above 1.5 again with no major change of the current market sentiment can support it.
    The Japanese yen has been met too by strong selling versus the greenback when it reached 98 and it is now trading just below 100.
    The single currency which is waiting tomorrow for the release of Mar CPI is still heading down to 1.31 area versus the greenback after inability to break above 1.34 in the beginning of this week. Further weak inflation data in the euro zone tomorrow can lead to a break of this level as it opens the way for the ECB to ease further and take further stimulation steps with no up side inflation risks which worries the ECB as Trichet has mentioned in his recent press conference after cutting the interest rate in the euro zone by just .25% in the beginning of this month.

    Best wishes

    FX Consultant
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com

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