Market Briefing for 02/03/2009
Tuesday, February 03, 2009
U.S. stocks closed yesterday session in green, after data showed that U.S. consumer spending fell in December, while the personal savings rate rose to its highest level since May. Over the last couple of weeks investors have pushed economic data aside, as they have been focusing on various stimulus plans.
After U.S market hours yesterday the Australian Central Bank slashed its rate by a full basis point bringing their once-to-be-known high yielding rate down to a mere 3.25%. Even though compared to other central bank rates they are still providing an appealing yield, a gloomy outlook continues to weigh on the central bank, and might leave them no other alternative as to continue with their monetary easing. In addition to the rate cut, the bank added a stimulus package, spending almost 42 billion Australian Dollars to try to keep their economy afloat.
The Australian Central Bank wasn’t the only bank to intervene during early morning trading hours today. The BOJ approached the markets stating that it intends to buy up 1 trillion Yen worth of financial stocks in order to reduce the chaos and increase the sentiment in the markets.
Despite global bank’s efforts to set their economies on the right track, investors are still troubled by U.S’s outlook. After numerous discussions regarding the stimulus package, one which is supposedly meant to help all the problems in the financial sector, officials can’t seem to make a final decision and agree. According to Bloomberg news officials have yet again sat down to try to compromise on President Barack Obama’s stimulus plan. While the package is aimed at helping the battered housing and financial sector, many are wondering when the plan will be finalized and realized; concerned that it will take too long.
On the Forex market the Dollar index continued to trade at current levels of 86 points, forming a small doji candle stick. As stated in previous reports, interest rate decisions and unemployment data from the U.S should have a larger impact on the various markets this week, including the Forex market. To date, as shown on the daily video briefing, most of the currency pairs seem to be trading in range. After increasing rapidly last week, the Euro yet again lost its steam heading back down below resistance. While the EUR/USD pair is still in a downtrend, upcoming data could spark sharp movement on this pair.
Looking forward the U.S futures are pointing to a mixed open. While the economic calendar is lacking any major moving market data today, one should be aware that the intraday trading session could be slightly volatile, as traders are expecting an exciting next couple of days.
Market Pivot Points
Tuesday, February 03, 2009
U.S. stocks closed yesterday session in green, after data showed that U.S. consumer spending fell in December, while the personal savings rate rose to its highest level since May. Over the last couple of weeks investors have pushed economic data aside, as they have been focusing on various stimulus plans.
After U.S market hours yesterday the Australian Central Bank slashed its rate by a full basis point bringing their once-to-be-known high yielding rate down to a mere 3.25%. Even though compared to other central bank rates they are still providing an appealing yield, a gloomy outlook continues to weigh on the central bank, and might leave them no other alternative as to continue with their monetary easing. In addition to the rate cut, the bank added a stimulus package, spending almost 42 billion Australian Dollars to try to keep their economy afloat.
The Australian Central Bank wasn’t the only bank to intervene during early morning trading hours today. The BOJ approached the markets stating that it intends to buy up 1 trillion Yen worth of financial stocks in order to reduce the chaos and increase the sentiment in the markets.
Despite global bank’s efforts to set their economies on the right track, investors are still troubled by U.S’s outlook. After numerous discussions regarding the stimulus package, one which is supposedly meant to help all the problems in the financial sector, officials can’t seem to make a final decision and agree. According to Bloomberg news officials have yet again sat down to try to compromise on President Barack Obama’s stimulus plan. While the package is aimed at helping the battered housing and financial sector, many are wondering when the plan will be finalized and realized; concerned that it will take too long.
On the Forex market the Dollar index continued to trade at current levels of 86 points, forming a small doji candle stick. As stated in previous reports, interest rate decisions and unemployment data from the U.S should have a larger impact on the various markets this week, including the Forex market. To date, as shown on the daily video briefing, most of the currency pairs seem to be trading in range. After increasing rapidly last week, the Euro yet again lost its steam heading back down below resistance. While the EUR/USD pair is still in a downtrend, upcoming data could spark sharp movement on this pair.
Looking forward the U.S futures are pointing to a mixed open. While the economic calendar is lacking any major moving market data today, one should be aware that the intraday trading session could be slightly volatile, as traders are expecting an exciting next couple of days.
Market Pivot Points