U.S Officials are at it Yet Again
By dodjit.com
Asian markets opened the week on a positive note as optimists grabbed stocks at discount levels, following official’s recent actions. Together with the U.S, world leaders are now trying to determine a new set of regulatory rules that will help stabilize the financial sector, allowing a freer but safer flow of money throughout the system.
Even though headlines are still focusing on the U.S’s actions, China reported earlier today that it intends to engage in stimulus actions hoping to increase its growth rate by 1.9%. Officials announced that they intend to invest in industrial factories, which should help metal outputs within the next 3 years.
In addition, the major stock markets received a boost Monday morning following Geithner’s comments over the weekend, about his recent plan to absorb all the toxic assets in the financial system. According to news headlines the treasury department intends to buy back mortgage-related securities and other assets that are dragging down the economy.
At the European open, stocks climbed higher on Asia’s positive momentum. The DAX jumped by over 1% while the FTSE increased and is now trading 1.53% higher.
The Euro is currently trader’s favorite
On the Forex market, risk appetite returned Monday morning sending the Dollar lower against its counterparts. Since then, the Dollar has recently bounced back within the intraday session, still trading around critical trend line support. Carry trades continued higher throughout the morning, with the GBP/JPY climbing to recent resistance. A break of the 141.68 level could lead this pair to higher ground.
.
Over the last few trading days the Euro has received a large amount of cash flow due to its high yielding rate. With a current interest rate of 1.5% compared to the U.S’s 0.25% and an ECB chairman, reluctant to engage in monetary cuts, the Euro has become the favored currency among traders. The EUR/JPY has recently broken resistance of 131 and is now heading higher. The pair’s momentum could be capped if the EUR/USD doesn’t break strong resistance around current its levels.
After last week’s rally Gold opened mixed, Monday morning. Last week’s big drop in bond yields only helped to strengthen the momentum, as lower treasury yields sent investor out of the dollar, contributing to stronger commodities. As mentioned on the weekly reports, the Dollar’s value is an important factor at the moment, as many now fear that a lower Dollar will increase inflation pressures, through rising metal prices.
What to watch out for
Even though the economic calendar is relatively light on data this week, official’s comments should continue to have an impact on the various traded market. The U.S treasury secretary is expected to give his statement regarding the buy up plan later today. In addition the U.S is expected to release its existing home sales result. Following last week’s positive result in the sector the data will be closely watched. Japan is scheduled to release its protocol of the last interest rate meeting. According to recent data Japan’s economy is still showing a deteriorating economy, one which could require further measures, to insure future stability.
By dodjit.com
Asian markets opened the week on a positive note as optimists grabbed stocks at discount levels, following official’s recent actions. Together with the U.S, world leaders are now trying to determine a new set of regulatory rules that will help stabilize the financial sector, allowing a freer but safer flow of money throughout the system.
Even though headlines are still focusing on the U.S’s actions, China reported earlier today that it intends to engage in stimulus actions hoping to increase its growth rate by 1.9%. Officials announced that they intend to invest in industrial factories, which should help metal outputs within the next 3 years.
In addition, the major stock markets received a boost Monday morning following Geithner’s comments over the weekend, about his recent plan to absorb all the toxic assets in the financial system. According to news headlines the treasury department intends to buy back mortgage-related securities and other assets that are dragging down the economy.
At the European open, stocks climbed higher on Asia’s positive momentum. The DAX jumped by over 1% while the FTSE increased and is now trading 1.53% higher.
The Euro is currently trader’s favorite
On the Forex market, risk appetite returned Monday morning sending the Dollar lower against its counterparts. Since then, the Dollar has recently bounced back within the intraday session, still trading around critical trend line support. Carry trades continued higher throughout the morning, with the GBP/JPY climbing to recent resistance. A break of the 141.68 level could lead this pair to higher ground.
.
Over the last few trading days the Euro has received a large amount of cash flow due to its high yielding rate. With a current interest rate of 1.5% compared to the U.S’s 0.25% and an ECB chairman, reluctant to engage in monetary cuts, the Euro has become the favored currency among traders. The EUR/JPY has recently broken resistance of 131 and is now heading higher. The pair’s momentum could be capped if the EUR/USD doesn’t break strong resistance around current its levels.
After last week’s rally Gold opened mixed, Monday morning. Last week’s big drop in bond yields only helped to strengthen the momentum, as lower treasury yields sent investor out of the dollar, contributing to stronger commodities. As mentioned on the weekly reports, the Dollar’s value is an important factor at the moment, as many now fear that a lower Dollar will increase inflation pressures, through rising metal prices.
What to watch out for
Even though the economic calendar is relatively light on data this week, official’s comments should continue to have an impact on the various traded market. The U.S treasury secretary is expected to give his statement regarding the buy up plan later today. In addition the U.S is expected to release its existing home sales result. Following last week’s positive result in the sector the data will be closely watched. Japan is scheduled to release its protocol of the last interest rate meeting. According to recent data Japan’s economy is still showing a deteriorating economy, one which could require further measures, to insure future stability.