Today's US durable goods data of April could add to the greenback gains across the broad after the oil prices have eased lowering the pressure on the greenback and the stagflation threats. The gold has dragged down below 900 versus the greenback. April durable goods excluding transports have risen by 2.5% and the broad figure has declined by just .5% and the market was expecting a decline by 1%.
The greenback selling has eased recently as there were no new reasons to send it triggering a profit taken wave. The market is not expecting bigger loses than what it has had from the housing market and the credit crunch which resulted from it.
The greenback has found support from the decline of oil prices which are containing the forex market sentiment currently. The high oil prices tackling the demand and the Fed's easing and cause inflation pressure which can cause a stagflation at this current growth slow down in US after which triggered after the US sub-prime mortgage problem and it is negative impact on the crediting market totally causing a turmoil in the financial markets. We wait later this week for the release of US GDP Q1 which is expected to be 1 with core PCE at 2.2% and Chicago PMI which was 48.3 in April and from EU, it is important to watch EU flash HICP which is expected to rise in May TO 3.5% from 3.3% in April after rising in March to 3.6%.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
