Wall Street Confusing Equity Traders, Gold Price Consolidate

Disappointing Inflation Results from U.S.

The U.S Dollar took additional hit on Monday, as investors continue to build a mindset that the Federal Reserve will become less aggressive regarding its interest rate policy. Traders on Wall Street saw the Dow Jones Industrials put in slight gains, as the S&P and NASDAQ lost ground – this pattern has been prevalent the past week and the divergence in the equity markets is making market participants nervous. A Manufacturing Purchasing Managers Index report will be published in the States.

Solid Manufacturing Data in China and Japan

The Caixin Manufacturing PMI results from China came in above its forecast this morning. And Japanese Manufacturing statistics essentially met their estimate. Asian equities have been positive this morning, the Hang Seng and Shanghai Shenzhen composites have advanced well. The Yen remains strong against the U.S Dollar and the 110.00 ratio looks to be important support.

Euro & Pound Adding Value

The Euro and Pound have collectively continued to add value against the U.S Dollar and are approaching crucial resistance junctures. European equities sputtered again on Monday. Manufacturing PMI data will come from Germany, France and Italy today. The U.K will also present its important Manufacturing sector report.

Gold Price Consolidate

Gold has remained within its stronger values and is near 1275.00 U.S Dollars an ounce. Speculation has become abundant in the precious metal as the U.S Dollar has weakened the past couple of weeks.

Yaron Mazor is a senior analyst at SuperTraderTV.

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