Moving into this trading week the USD looked stronger than most of its counter parts, but that façade of strength didn’t last too long going through the European and US sessions. On the European front, monetary policy officials began their discussions on what other steps can be taken to help the debt crisis and to finalize the European Financial Stability Funds (EFSF) later this week. Equity markets in Europe and the US rallied on this news and shrugged off the New Home Sales number that came in at a 9 month low, 295k in August vs. the 302k we saw in July.
The EUR/USD ranged from 1.3361 to 1.3549 for the day. Gold was a commodity traders were watching as its downward sell-off continued to slide for another day, settling at $1,622.20 down -1.07% for Monday’s trade. The Dow Jones Industrial Average and S&P 500 closed higher to +272.38 (+2.53%) and +26.52 (+2.33%) respectively.
This week’s outlook: On the European front, anymore news about the EFSF and Germany’s decision to participate in such plan. On the US front, Tuesday we have Consumer Confidence data at 10:00am (EST) where hopefully it isn’t a steep drop like it was in August of 14.7 points to 44.5, the lowest level since April 2009. Then on Wednesday, Durable Goods Orders at 8:30am (EST) which is a good indication of the pulse of the economy in any healthy economic growth in the manufacturing sector. On Thursday we have a busy day, as GDP data and Jobless Claims come out at 8:30am (EST). Later that day is Pending Homes Sales index number at 10:00am (EST) to see any activity in the housing front. Lastly, Personal Income and Outlays at 8:30am (EST) where last month we saw a healthy rise but there may be some adjustments due to a sluggish motor vehicle sales carry over.
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Daily Recap – Dollar Strength Doesn’t Hold
Moving into this trading week the USD looked stronger than most of its counter parts, but that façade of strength didn’t last too long going through the European and US sessions. On the European front, monetary policy officials began their discussions on what other steps can be taken to help the debt crisis and to finalize the European Financial Stability Funds (EFSF) later this week. Equity markets in Europe and the US rallied on this news and shrugged off the New Home Sales number that came in at a 9 month low, 295k in August vs. the 302k we saw in July.
The EUR/USD ranged from 1.3361 to 1.3549 for the day. Gold was a commodity traders were watching as its downward sell-off continued to slide for another day, settling at $1,622.20 down -1.07% for Monday’s trade. The Dow Jones Industrial Average and S&P 500 closed higher to +272.38 (+2.53%) and +26.52 (+2.33%) respectively.
This week’s outlook: On the European front, anymore news about the EFSF and Germany’s decision to participate in such plan. On the US front, Tuesday we have Consumer Confidence data at 10:00am (EST) where hopefully it isn’t a steep drop like it was in August of 14.7 points to 44.5, the lowest level since April 2009. Then on Wednesday, Durable Goods Orders at 8:30am (EST) which is a good indication of the pulse of the economy in any healthy economic growth in the manufacturing sector. On Thursday we have a busy day, as GDP data and Jobless Claims come out at 8:30am (EST). Later that day is Pending Homes Sales index number at 10:00am (EST) to see any activity in the housing front. Lastly, Personal Income and Outlays at 8:30am (EST) where last month we saw a healthy rise but there may be some adjustments due to a sluggish motor vehicle sales carry over.
