FXstreet.com

FX Technical Strategy

This report has been deactivated

0

0

Gold weighs on sentiment

Fri, Oct 24 2008, 06:17 GMT
by Lloyds TSB Financial Markets Economic Research Team

Lloyds TSB Financial Markets


Market overview

Clearly the current market developments are favouring the yen. The equity markets remain vulnerable and the downside could well be accelerated by continued commodity price drops.
The deflationary effects of the drop in soft commodities, base metals and particularly oil have also played into the dollar's hand (although the yen is still outperforming and will continue to do so). However, the long term effects of these moves will be unwound as aggressively (perhaps even more so) as they are occuring, although timing is naturally key, particularly with volatility so elevated.

With gold edging towards key support at $730 and looking increasingly like a medium term top, the dollar looks set to remain in favour for the coming weeks and possibly into year end. It also implies we have yet to see the base (particularly against the yen) in the Canadian, New Zealand and Australian dollars, despite a couple of false dawns. The swiss franc having weakened through a key level at 1.15 against the dollar should have a further squeeze, but the euro and sterling look set to take the brunt of the yen's surge.


Archive


Related reports

Weekly Market Commentary - Libor and Official Interest rates are at their narrowest by Mizuho Corporate Bank
Fri, Jul 3 2009, 14:33 GMT

Weekly Commodity Update - Risk appetite heading for the exit by Saxo Bank
Fri, Jul 3 2009, 13:28 GMT

London Gold Market Report by BullionVault.com
Fri, Jul 3 2009, 13:24 GMT

European Market Update - Spain June Services PMI: 41.2 v 39.1 prior by TradeTheNews.com
Fri, Jul 3 2009, 12:32 GMT

Daily Market Report - Risk aversion was the main theme of yesterday's trading session by Wachovia
Fri, Jul 3 2009, 12:25 GMT

eurusd, eurjpy, metals, chfjpy, gold, gbpusd, usdchf, gbpjpy, usdjpy

View All

Related content

European Markets mixed, EUR rises and GBP lower
FXstreet.com | Fri, Jul 3 2009, 14:38 GMT

Forex: EUR/USD rebounds at 1.3980, back above 1.4000
FXstreet.com | Fri, Jul 3 2009, 11:46 GMT

CURRENCIES: Dollar Edges Higher In Thin Trade Ahead Of Holiday
Dow Jones | Fri, Jul 3 2009, 11:46 GMT

Forex: GBP/USD falls further to test 1.6300
FXstreet.com | Fri, Jul 3 2009, 11:20 GMT

2nd UPDATE: UK Service Sector Grows, End Of Recession Nears
Dow Jones | Fri, Jul 3 2009, 10:15 GMT

eurusd, eurjpy, metals, chfjpy, gold, gbpusd, usdchf, gbpjpy, usdjpy

View All

Interested in forex trading? forex brokerage firms!


MG Financial Group
Contact the broker/FDM
Open a demo account
FOREX.com
Contact the broker/FDM
Open a demo account
City Credit Capital (UK) Limited
Contact the broker/FDM
Open a demo account
Alpari (US), LLC
Contact the broker/FDM
Open a demo account
FXDD
Contact the broker/FDM
Open a demo account

GET CASH BACK FOR YOUR TRADES!   Learn more about the Pip Rebate Program

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.

Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

©2009 "FXstreet.com. The Forex Market" All Rights Reserved.