The currency market is still taking its clues from the equity market
changes as a mirror of the current financial markets turmoil. The
markets eyes were looking for what can be for Citigroup not just these
recent days which had a massive selling of the stock but may be since
the bankruptcy of Lehman Brothers. The market has looked at the rescue
plan of citi as a turning point of the crisis itself even if there are
others in need of similar stimulus huge bailing out plans as the
markets were looking at the spreading out group across the broad as
very big to be allowed to fall with more than 2$ trillions of assets.
The market has reacted strongly to the news and pushed the Japanese
yen lower across the broad and the greenback in a sign of confidence
in the equity markets to take risks again away from the current safe
haven stance in the markets which pushed the gold prices recently
above 800$, In spite of the current decline of inflation rates around
the globe as a negative impact of outlook of the recession which
resulted from the financial crisis. God willing, The gold will face
serious pressure at these levels right now and in the coming few days
by the thanks giving holidays which can calm down the market volumes.
No data today could change this event containing of the current market
sentiment. the Germane IFO which has declined to 85.8 could not push
the single currency lower and also the decline of US new home sales
which came lower than 5 m in October at 4.98m. No serious expected
data this week but the market is waiting for next week the US Labor
re****t of November and the ISM services and manufacturing figures of
the same month which is expected to keep sinking below 50 in the
contracting territory.
Best wishes
FX Consultant
Walid Salah El Din
E-Mail: mail@[EMAIL PROTECTED]
