Global Investors Remain Cautious as Wall Street Gets Set to Open

Traders in Asia and Europe have proven cautious today.  Wall Street is forecasted to open lower via the Future Markets. Yesterday’s Existing Home Sales data from the States was improved.  The weakened price of Crude Oil continues to worry the broad markets.

Fed Outlook Creating U.S. Dollar Speculation

Weekly Unemployment Claims will come from the States today. Yesterday’s Existing Home Sales numbers did see a solid improvement, and tomorrow New Home Sales figures will be released. Wall Street turned in a mixed day of trading on Wednesday as nervous elements surrounding the weaker values in Crude Oil have influenced broad market sentiment. Early calls from the Future Markets indicate a negative opening for the three major equity Indexes. The U.S Dollar is creating a whirlwind in forex as traders are speculating on the exact timing of the next interest rate hike from the Federal Reserve.

Yen’s Consolidated Mode

The Shanghai Shenzhen composite finished with slight gains today. After starting the day with solid buying the equities market in China could not hold onto its early morning push upwards. The Nikkei and Topix Indexes finished in the red today with marginal losses. The Yen has been in a tight band against the U.S Dollar all week and the 111.00 value remains a focal point. Tomorrow morning, Japan will release its Flash Manufacturing statistics and this could have an impact on what has been a cautious trading week.

U.K. Political Environment Difficult for Investors

Equities in Europe have opened with nervous trading as the Footsie and Dax have declined. The Euro and Pound have continued to range trade against the U.S Dollar. The 1.12 level for the European currency and U.S Dollar remains resistance. The Pound has seen a consolidated mode the past twelve hours as investors continue to become increasingly cautious due to the political environment in the U.K, which has put Britain in a tough position as it tries to negotiate its Brexit. Tomorrow important Manufacturing Purchasing Managers Index readings will come from the European Union.

Substantial Test of Range Underway

Gold managed to find significant buyers early today in Asia. The price of the precious metal climbed past 1250.00 U.S Dollars an ounce as speculative trading has brought on additional volatility as an equilibrium is sought. The next two trading days could produce a substantial test of Gold’s range.

Yaron Mazor is a senior analyst at SuperTraderTV.

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