Market Brief
The Usd was weaker in the Asian session, as an article in the Financial Times weight on the greenback. The EurUsd traded to 1.3720 from 1..3606,vwhile the UsdJpy traded down to 95.80 from 96.60. The Sterling has been supported by stronger than expect data, breaking decent topside levels at 1.5315. The FT report has an opinion piece by David Walker, the former comptroller general of the US , arguing that the US needs actively respond to steer clear of a downgrade in its AAA rating. It’s important to mention that the US is a global benchmark and would lead to other sovereign downgrades. Wall Street closed slightly lower, but Asian regional indexes closed higher and European are currently in the positive.
Expectations for higher inflation pushed gold into a new range, trading well above the 50 day moving average of $908oz. Oil surged to $59bbl, providing the perfect opportunity for Traders looking to benefit from hedgers going long to thwart price pressure on other asset classes. The US and most of Europe are in a extremely low interest rate environment, setting the stage for rapid inflation if the demand for higher yielding assets becomes a longer-term trend.. Gold has been fairly volatile over the last several sessions with a 5 day low of $895oz , versus the current price of $925oz. This wide range is atypical for the precious metal and should act as a sign of caution for investors speculating in gold. If the market continues to move towards a recovery phase, inflation concerns will rise bolstering gold even higher.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 9,340.49 | + 0.45 |
| Hang Seng Index | 17,046.03 | - 0.67 |
| Shanghai Index | 2,663.77 | + 1.74 |
| FTSE 100 Index | 4,421.05 | - 0.10 |
| DAX Index | 4,859.54 | + 0.11 |
| SMI Index | 5,347.44 | + 0.02 |
| DJIA futures | 8,428.00 | - 0.09 |
| World Markets | Current Level | % Change |
| Gold | 927.18 | + 0.41 |
| Silver | 14.31 | + 0.49 |
| VIX | 31.80 | - 3.22 |
| Crude wti | 59.73 | + 1.49 |
| USD Index | 82.03 | - 0.34 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Claimant count unemployment apr | 79.3 | 73.7 | GBP / 8.30 |
| ILO unemployment rate % mar | 6.9 | 6.7 | GBP / 8.30 |
| Industrial Production | -1.0 | -2.3,-18.4 | EUR / 9.00 |
| Import Price | 0.4,-16.9 | 0.5,-14.9 | USD / 12.30 |
| Retail Sales apr | -1.0,-9.7 | -1.2,9.6 | USD / 12.30 |
| Retail Sales x-auto | 0.0,-6.8 | -1.2,-9.6 | USD / 12.30 |
| Business Inventories | -1.1,-4.7 | -1.3,-3.6 | USD / 14.00 |
Currency Tech
AUDUSD
R 3: 0.8520
R 2: 0.8097
R 1: 0.7738
CURRENT: 0.7690
S 1: 0.7508
S 2: 0.7460
S 3: 0.7337
EURJPY
R 3: 137.40
R 2: 135.57
R 1: 134.80
CURRENT: 132.03
S 1: 130.72
S 2: 129.87
S 3: 128.90
USDSGD
R 3: 1.4800
R 2: 1.4745
R 1: 1.4972
CURRENT: 1.4587
S 1: 1.4500
S 2: 1.4446
S 3: 1.4270
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
