The forex market was very mixed and directionless this week. The Volatility of oil prices was the main market controller in the beginning of this week but Now, the market wariness about next week US financial earning reports of the second quarter is containing the current market sentiment. There can be further write down loses triggering the needs for cutting and increasing the banks capitals in the face of the credit crisis and the sluggish growth and the lost trust of investing.
We wait today the MPC interest rate decision which is expected to come with no new as the strong inflation upside risks and the growth down side risks are tying the central bank hands.
The G8 have come with no significant change but their diplomatic calls for increasing productions of oil in the face of the increased demand even there was no this criticism of the dollar weakness of their previous meeting but adding that there is a great deal of growth uncertainty currently!
The gold is still trading well above 900$ underpinned by the recent increased Iranian tensions because of its nuclear program especially after this week exercising of its medium and long rage rockets like Shehab-3 this week.
We should listen today to Bernenke and Paulson testifies on markets before housing Committee. There may be something new.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com
