ECB Forum Discussion Will Get Investors Attention

The ECB forum continues today and a Panel Discussion will take place including leaders of the global central banks. Equities have been cautious early. Federal Chairwomen Janet Yellen put a dent into Wall Street yesterday, when she said some equities look ‘rich’. Pending Home Sales numbers will come from the States today.

GDP Numbers Tomorrow Highly Anticipated

Wall Street declined on Tuesday in the wake of Federal Reserve Chairwoman Janet Yellen’s remark, that essentially expressed the notion – some equities may be a bit expensive. The Fed leader did not give a timetable for the next interest rate hike from the States and implied data needs to be monitored. Pending Home Sales numbers will come from the U.S today, but tomorrow’s Gross Domestic Product results will be highly anticipated. The Dow Jones Industrials remains above the 21,300 level and is being called to open slightly higher today via indications from the Futures Markets. The U.S Dollar has been weaker against the Euro and Pound in early trading.

BoJ Governor Kuroda Speaking Today

The major Asian composites today essentially mirrored the cautious results from the American markets. Investors are waiting to see all the cards that will be dealt from the central bank leaders who are speaking today, including Bank of Japan Governor Kuroda. The Yen remains near the 112.00 juncture against the U.S Dollar and has seen a rather tight range trade the past couple of days.

Traders Will Listen to ECB Panel Discussion

The European Central Bank’s forum in Portugal will continue to get plenty of attention this afternoon as a Panel Discussion will be conducted. Leaders of the global central banks will speak about monetary policy, including interest rates but will also be asked questions about economic outlooks. ECB President Mario Draghi surprised investors yesterday with his rather hawkish speech regarding the potential need to tighten monetary policy in the coming year. The Euro has traded stronger and the 1.14 level has come into sight as potential resistance against the U.S Dollar. European equities have been cautious this morning with limited declines, including selling pressure on the Footsie and Dax.

Traders Should Remain Aware

Gold has traded in a stable range the past day. The price of the precious metal remains near the 1250.00 U.S Dollars an ounce level. However, traders should not be lulled to sleep if they are trading Gold, because volatility could re-emerge suddenly and provide fast conditions.

Yaron Mazor is a senior analyst at SuperTraderTV.

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