Uncertainty Continues to Weigh Global Markets, US GDP in Focus
Yesterday’s results on Wall Street proved equities remain volatile and Asian Indexes have declined this morning. Gold has face headwinds in the short term.
Wall Street Remains Untamed, More Volatility to Develop on Indexes
The Gross Domestic Product numbers which will be released in the U.S soon will be the highlight of the week for economic data. Wall Street has proven again it remains untamed. Yesterday’s steep losses killed hopes that the broad markets would produce steady bullish conditions. Instead, the nasty declines on the three major U.S Indexes – particularly from the NASDAQ – spurred on a strong drop in equities on Asian Indexes today, and Europe has been negative this morning. The GDP numbers from the States could ignite more volatility if they miss their estimated gain of 2.7%. U.S Futures Markets are indicating Wall Street will open with moderate losses, but it should be remembered yesterday’s selling in the States didn’t escalate until late in the day.
Unease in the Forex Markets as U.S Data Awaits, Euro & Pound Soften
The Euro and Pound have been under pressure early this morning. The Euro is trading slightly below the 1.24 level and the Pound is around 1.4150 versus the U.S Dollar. The recent strength shown by the Euro and Pound since the middle of last week will face an important test of sentiment in the coming hours. Forex participants will have to keep their eyes on the major currencies particularly in the midst of the U.S growth numbers release and aftermath. The Yen has been slightly stronger the past few hours as risk adverse trading has increased in Asian markets. Retail Sales data will come from Japan late tonight.
Caution Vital Today in Gold, Gold Confronted by Fast Conditions
Pressure has mounted for Gold this morning as it has stumbled to short-term lows. The precious metal is near 1341.00 U.S Dollars an ounce and is being confronted with fast conditions leading up to the U.S growth statistics. Bold speculators may be tempted to buy Gold, but caution may prove vital today.
U.S Growth Numbers Could Define Day, Crude Oil Supply Data Coming
The outcome from the U.S Gross Domestic Product data will be looked at by traders across the globe upon its release at 12:30 GMT.
- 12:30 PM GMT, U.S, Final Gross Domestic Product
- 14:30 PM GMT, U.S, Crude Oil Inventories
Yaron Mazor is a senior analyst at SuperTraderTV.
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