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30/11/2009 - The current market sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, Nov 30, 2009.

  1. fx-recommends

    fx-recommends Content Contributor

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    The worries about World Dubai creditability could contain the market sentiment in the recent few days while most markets were off because of the thanksgiving holidays and the Islamic sacrificing Eid of the Moslems which increased the market volatility as the low volume of the markets. It looks that there can be troubles in the short term as there is new reevaluating of the current creditability conditions of the banking system conditions of the Emirates which is not looking positive than before but the government and central bank of the Emirates could calm down the market showing its ability of funding its banking system and endure this exposure which has resulted from just a shortage of liquidities in the near term.
    The greenback has gained strongly from the news across the broad in the beginning before giving back most of its gains with market digesting of the news and several announcements from England, Russia and France Prime ministers that the impact of the problem will be short lived referring on the ability of emirate to get out of the crediting worries soon with no influences on the global recovery.
    The Gold reached 1137 after the news after recording 1195 a day before but it has bounced back up with the markets getting back trust and stability to trade at 1170 currently. Also Dow has lost more than 300 points in the beginning of the US session but it could close at 10309 losing just 154 by the end of last week.

    The Cable was negatively impacted today by a falling of the net lending to the individuals in October to .3 Bln Stg from .66 and the market was waiting for .8 as the consumer credit has got down by .6% in October while the market was waiting for a declining by just .3% as the same as September. The mortgage approvals of that same month have come below the market. expectations of 59k at 57k too. The cable has just made a new session low below 1.647 at 1.6454 while it was still negatively impacted by a dovish interest rate outlook after the recent MPC decision of adding further 25 Bln Stg to the bank of England buying bonds plan and Marvin King's announcement in front of the house of committee which have shown that he is looking for a reduction of the trade deficit which weighed on the struggling growth UK which is negative to the British pound as it is well known that the lower currency value gives a competitive advantage to the exports which show that the BOE governors are preferring to a lower currency value currently but later in his speech he has referred to a spike of the inflation in UK in the coming 6 months which brought back the British pound up again as this can tackle taking further easing steps in the near term.

    By God's Will, we are just waiting today for the release of US Chicago PMI of November which is expected to be 53.2 from 54.2 in October but the week is still full of important economic data which should attract your attention later as tomorrow releases of Nov EU PMI which is expected to be 51 and Nov UK PMI 54.2 and Nov US ISM manufacturing index which is expected to be 54.2 and by the end of the week US labor report of November which is forecasted to show losing of the non-farm payroll by another 140k and with the same unemployment rate of October which was 10.2%.

    Best wishes

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