Sunrise Market Commentary
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Dollar extends rally on falling commodity prices
Mon, Aug 18 2008, 07:20 GMT
by KBC Market Research Desk
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Gold fell below 800 USD/ounce, but rebounds this morning
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US equities end week mixed contributing to a mixed start of the week in Asia this morning
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UK house prices drop most since 2002, according to Rightmove
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British Chamber of Commerce sees a ‘distinct possibility’ of a technical recession in the UK
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Russia to start pulling back out from Georgia
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Thin calendar today: Euro zone trade balance and US NAHB housing market index
Markets
On Friday, the recent trend reversals were confirmed, as the dollar gained further ground and the sell-off on the commodity market continued. As such, euro and sterling hit new lows against the dollar at respectively 1.4650 and 1.8510, while on the commodity market the CRB index lost another 7 points and gold dropped below 800 USD/ounce before recovering slightly this morning. Oil met strong support at around 110 USD/barrel and rebounded already on Friday and is currently back above 114 USD.
Also on the bond markets, bonds moved higher and Treasuries are now approaching technical important resistance levels in the US. In the euro zone, the technical picture has already improved following the break above the mid-July highs. A confirmation of this break higher in the US would point to more gains ahead both on the European and US bond markets, although ECB’s Weber and Stark sounded still quite hawkish. They both downplayed last week’s negative growth figures for the second quarter and doubted whether the slowdown in growth will lead to a significant dampening of inflationary pressures. Their comments couldn’t prevent yields from falling further for now.
Today, the calendar is very thin and contains no market moving items. Also further out this week, the calendar remains little exciting, especially in the US. In the euro zone, a lot of attention will go out to the August flash PMI’s on Thursday following last week’s negative growth figures for the second quarter.
Dollar gains further ground against euro and …
… sterling, while …
… gold falls below 800 USD/ounce and …
… the CRB index set a new recent low.
US Treasuries (T-Note) testing key resistance levels, which…
… have already been broken in the Bund.
Published on Mon, Aug 18 2008, 07:30 GMT
Archive
- Trichet urges banks to 'live up to their responsibilities'
Published On Fri, Jul 3 2009, 07:10 GMT - Fears about credit squeeze and details covered bond plan to dominate ECB press conference
Published On Thu, Jul 2 2009, 07:40 GMT - Fitch warns governments on public finances
Published On Wed, Jul 1 2009, 06:55 GMT - Banks deposit excess liquidity at the ECB
Published On Tue, Jun 30 2009, 06:55 GMT - Bund confirms break above downtrend channel
Published On Mon, Jun 29 2009, 07:02 GMT
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