The PMI Services and Manufacturing readings from Germany and France on Monday featured that sentiment has become cautious. All the marks failed to reach the Flash objectives. Today the German Ifo Business Climate statistics will be unveiled and investors expect a to see an additional rather dissatisfactory end. The downward pressure that has altered the Euro is always a subject of interest and it should take a number of good levels of confidence to increase support to the Single Currency. The confidence game is primarily being played by European authorities who are giving their best effort to reassure investors that Greece's Sovereign Debt problem will not finish with a restructuring. However rumors carry on and increase that Greece is in serious demand for one other bailout and faces the chance of insolvency in just two months time if they are not bailed out.
The U.S. will publlish New Home Sales today. The housing sector carries on to render not good final results and prices on homes continues to highlight a disappointing prospect. Last week's Building Permits and Housing Starts data were not looking good. Tomorrow the States will release Core Durable Goods Orders. Also a bothersome distraction have been the somewhat lackluster Manufacturing Index volumes from last week via the Empire State and Philly Fed statistics. Although not as essential to investors the Richmond Manufacturing Index information is on the schedule today. The United states dollar has certainly gained as risk adverse trading has generated up impetus. In the particular more general picture when looking back the past year the EUR/USD pair in actuality finds itself with a nearly matching worth comparatively. However, range trading has been self evident and there are distinct advantages for traders aiming to achieve from the fluctuations that impact the markets. Equities have remained unactive the past few weeks and this is a sure sign that investors might be beginning to discover more stable havens.
Commodities continue to turn in mixed results as well, Gold has climbed and as of this writing is just about 1517.00 USD per ounce. The fact that Crude Oil has not climbed in step with the precious metal and that other physical commodities such as grain have unexpectedly uncovered challenges suggests that a few speculative likes may have reduced for the moment. The cost of Gold and its continued successes also implies that a flight to quality is also underway with so many doubts about debt issues. The AUD has traded slightly negative the past couple of sessions, but with Gold sturdy the Australian dollar has not been hit so negatively.
The GBP stays under an EUR centric mode. But with so many concerns for the EUR in abundance some investors are asking when the Sterling will in the end begin to show divergence with the Single Currency. The U.K. will publish Public Sector Net Borrowing numbers today. CBI Realized Sales will also be publicized. The U.K. comes with debt and austerity troubles and there's a complex web of questions that affects the Gbp and its relationship to the problems of the European debt situation and therefore divergence hasn't yet emerged.
The JPY remains locked in the weaker side of its strong range. Many JPY bears abound expecting the time when the JPY will start to deteriorate against the USD. However the dance that the JPY has carried out the past couple of years has been one that shows a highly practiced range. Short term and long term positions for the JPY could be in opposite directions and prove competent for both.