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Market Update
News wise a very interesting start to the week, but the markets have reacted sideways up till now.
In the weekend we got confirmation that the ESM and ESFS got downgraded by Moody’s from Aaa to Aa1, while maintaining a negative outlook.
We had some mixed numbers out of Asia, but things got interesting when Spain officially requested a bailout from the EU for its troubled banks. The US ISM manufacturing numbers has disappointed and increased the pressure on the US Dollar.
The markets are still waiting for some direction and today has been exceptionally quiet when looking at the fiscal cliff and debt ceiling debacle. Tomorrow should give some direction because we have a couple of important events coming up. First up will be the Reserve Bank of Australia that will announce its interest rate decision for which we expect them to cut the rates from 3.25% to 3.00%. Then it will be interesting to look at the Eurozone Producer Price index and later we will be also watching the Bank of Canada interest rate decision and the statement after that, but we expect that the Canadians keep their rates steady at 1.00%.
Gold is right now at a crossroad scenario, it either goes lower to its key support at $1675 and $1625 before heading to the key resistance at $1800 or Gold could go up to $1800 without testing the key support levels again. The next few days will be very crucial for which scenario will play out. Right now its 50-50 for either scenario…
2012-12-03 18:24:41
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