Investors Gauging Their Risk Sentiment as U.S. Dollar Weakens

Wall Street is expected to open cautiously today. The U.S Dollar remains in its weaker range against the major currencies. Existing Home Sales will come from the States today, along with the Flash Manufacturing PMI.

Existing Home Sales Data Today – U.S Dollar Remains in Focus

Existing Home Sales data will come from the States today. Wall Street turned in fractional losses on Friday and remains a cautious battleground for traders as they weigh their risk sentiment. The Federal Reserve’s monetary policy statement will be released on Wednesday, but plenty of other important data will impact U.S investors in the days to come. Tomorrow a Consumer Confidence reading will be published. The U.S Dollar has lost ground the past week and a half in forex and its weakness remains in focus.

China Gains and Japan Falters, Yen Continues to Show Strength

The Hang Seng and Shanghai Shenzhen composites have continued to produce gains and have added to their positive runs the past month. However, in Japan traders continue to be tentative and have taken the Nikkei and Topix Indexes lower. The Nikkei has lost ground the past month, as economic data from Japan continues to be lackluster. The Yen has been stronger against the U.S Dollar too. The Monetary Policy Meeting Minutes will be published via the Bank of Japan on Tuesday.

PMI Data from Europe Disappoints, Euro Maintains Value Early

Purchasing Managers Index surveys from the European Union missed their targets this morning in the Manufacturing and Services sectors. The weaker than expected outcomes were not huge, but were disappointing. However, Euro has maintained its higher value against the U.S Dollar and is comfortably above the 1.16 level, with traders keeping resistance at 1.17 in sight. Tomorrow a German Business Climate report will be published. The Pound has been stronger against the U.S Dollar early today, and European equities have continued to see fractional selling.

Speculative Buying in Gold on Dovish Federal Reserve

Gold has continued to find speculative buying early on Monday and is traversing near 1262.00 U.S Dollars an ounce. Traders may be positioning themselves ahead of the U.S central bank meeting this Wednesday and wagering that a cautious monetary policy statement will be issued.

Yaron Mazor is a senior analyst at SuperTraderTV.

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