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23/12/2010 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, Dec 23, 2010.

  1. fx-recommends

    fx-recommends Content Contributor

    Aug 6, 2008
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    The US Dollar could keep most of its gains across the broad making new three months high versus the British pound which plunged to 1.5355 yesterday after the release of weaker than expected Q3 GDP which came at just .7% while the market was waiting for .8% with widening of the current account deficit to 9.7B Stg and it was awaited to be just 7.5% from 52.B Stg in the second quarter while the BOE recent meeting minutes suggested that there is majority of keeping the interest rate unchanged as there was only opposing voting from Andrew Sentence who preferred hiking the interest rate by 25 basis points as the leader of the inflation worried members while from the other side Adam Posen came again suggesting adding new 50B Stg to the current 200b Stg buying bonds plan but he was also the sole voter for this adding while the other preferred keeping everything as it is elevating their appreciation of the EU debt risks on the British economy and the increasing of the commodities and energy prices on the inflation outlook in UK. The British pound has come under pressure after these data reaching 1.5355 before rebounding in a slow pace above 1.54 again with the gains of the equities markets which weighed on the greenback with Dow making new 2 years high again at 11566 which helped the European equities markets to keep its recent gains as the market is optimistic of easing of the growth down side risks with the fed's easing measures supporting the demand for the commodities and oil which closed today above 90$ a barrel for the first time since October 2008 supported by decreasing of the crude inventories by 5.3m barrel while they were forecasted to be just 1.1m barrel of declining which helped the gold to be stabilized around 1390 versus the greenback which had mixed data as we were waiting for US Existing Home Sales of November to be 4.75m from 4.43m in October but they came at just 4.68m while October housing prices came up monthly by .7% to be the first increasing since last August and US Q3 GDP to be 2.8% from 1.7% in the second quarter yearly but it came at just 2.6% while the prices index of that quarter came down to 2.1% from 2.3% in the first and the second quarter while the real personal consumption expenditures of that quarter rose up by 2.4% from 2.2% in the second quarter and it was waited to ease to .8% and god willing we are waiting today for the core personal consumption expenditure price index to be up monthly by .1% from a flat reading in October and up yearly by .9% as the same as October and US durable goods orders of November to be down by .5% after tumbling in October by 3.3% but the figure excluding the transportation orders is expected to show rising by 1.7% after falling in October by 2.7% and we have also the US personal income of November which is expected be up by .4% from .5% in October and also US New Home Sales of November to be .3m from .283m in October and also we have today December UN Michigan consuming sentiment to be 74.5 from 71.6 in November as the Christmas Holidays.

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

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