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24/11/2009 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, Nov 23, 2009.

  1. fx-recommends

    fx-recommends Content Contributor

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    The weights have increased on the greenback in the beginning of this week as the speculation on further extended time of having the Fed's Quantitive easing steps on the market than its other counterparts central banks is containing the current market sentiment with the US stocks rising again and the investors' risk appetite increasing selling the greenback as a funding currency of their carry trades underpinned by rising of the US existing home sales of October by 10.1% while the market was waiting for gaining by just 2.3% from 9.4% in September. The Gold could record a new high at 1173.6 and it is now trading well above 1160 and Dow has closed above 10400 again at 10450 after facing a strong selling by the end of last week.
    There is no action yet from the fed or Europe but just giving words but the market has started pricing on coming waiting tightening actions from these central banks and the delayed one is surely expected to has pressure on its currency in this race of staving off their easing measures which have been imposed for reviving the growth again after the credit crisis which forced the them to give their possible ample of liquidity to move the economy in forms of cutting the interest rate massively to very low levels and buying bonds for giving the government and the companies and the household sectors the required liquidity for working again at a very low cost.
    We have seen in the recent months a crucial improving in US, EU and Japan while the growth is still lagging trying to get out of the recession in UK which weighed on the British pound recently and god willing, we are waiting today for the germane Q3 GDP Release today which is expected to be up by .7% quarterly from just .4% in the second quarter and the GDP Q3 preliminary revision of US which is expected be revised down to 3.3% from 3.5% in the first release. So, the market is expected to pay attention today to these releases beside the Germane IFO of November which is expected to be 92.5 and US Consumers confidence figure of November which is expected to be 49 from 47.7 in October.

    Best wishes

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