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Traders continued to exercise caution and refused to enter positions in light of expectations for another weak employment report expected Friday, lack of readiness of buyers to enter the game and create support for the leading indicators sent the slowly but surely close another day of sharp declines.
Measures have failed in an attempt to continue where they stopped last week, there were no significant quarterly reports yesterday will break the atmosphere Ahfasimioat private consumption due to warm U.S..
In July, personal income increased by 0.2% in accordance with the expectations of most analysts, private consumption expenditure (PCE) increased by 0.4% slightly better than expected, standing on 0.3%, but excluding transportation core private consumption rose only by 0.1% in accordance with the prediction.
While the data do not indicate a deterioration in consumers or slowed their activities, but the data were not good enough to provide inspiration and merchants do not predict an improvement in growth because there is not enough to bump the U.S. economic activity.
Consumer Action therefore reflects the behavior of capital markets traders - maintaining the existing waiting cautiously to see to see what the future holds.
Contrast to the conduct of markets and investors, we have witnessed increased activity in mergers and acquisitions (M & A):
Intel Corporation (INTC) has released a tender offer at $ 1.4 billion in cash for god company Infineon wires.
Pharmaceutical company Sanofi-Aventis (SNY) offered $ 18.5 billion in cash for the company Genzyme (GENZ), but the proposal was rejected outright on the grounds that is not enough.
All-out war between HP and Dell continues to grab headlines from HP current bid stands at $ 30 (price starting at $ 24 offered by Dell).
3M (MMM), Dow index record - Jones offered $ 430 million, or $ 10.50 per share for the company Cogent (COGT).
Despite the increased activity of mergers and acquisitions indicates that most of the Bavarian market (so it is a strong market) traders and especially the buyers were not impressed too much of Kenya and no secondary waves (about companies in parallel to those offered to buy them from the expected competition between the giants, for example if the company acquires Intel al - a thread is a good chance of its rival AMD also try to take over the market share in order to avoid too great a gap created with Intel).
Ignoring the traders did not come by surprise because we assumed that every piece of advance information will be examined with suspicion and lead to a limited response because it is likely that investors will prefer to sit on the fence which is given monthly employment Peveot most important point each month.
The next employment report will be published this Friday, many investors will examine the employment data private companies greater importance given total employment (as the government is expected to fire the central part of the temporary employees last census project and the overall figure would indicate a decrease of 100,000 jobs, but the important question How many jobs is "real" companies have been added.
Fell in light trading volumes and those cautious investors chose to exercise for trading ups profits last weekend.
Uncertainty at the VIX index (measure of volatility is also called the fear index) leaped by 11% merchants have chosen to withdraw their money in the stock and return the spoon bond market, the yield on bonds to 10 years back down toward 2.53%.
Another enjoys investor fears rate was measured against the currency basket rose by 0.3%, most traffic came almost as a result of weakening of the percentage of the rate against the dollar, compared with rate weak Japanese yen offset part of the continuing strengthening of the dollar to strengthen against him, the strengthening of the wine came despite an unsuccessful first attempt Japanese Central Bank to intervene and weaken the wine trade.
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Dow Jones closed a 1.39% decline of the 10 008 gate
Nasdaq closed 1.56% decline of 2119's Gate
S & P 500 closed 1.47% decline of the cover of 1049
Dax closed 0.65% decline of 5912's Gate
Potts closed the owner of 0.02% on the cover of 5202
Nikkei is trading 3.55% decline of the cover of 8824
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Important macro data continues to be displayed to traders will increase the pace goes up employment figures on Friday.
The big question is are hiding in the data surprise (positively or negatively) large enough to lead the market's movement before the outbreak of the data shuffle on Friday?
Note in particular the Chicago purchasing managers index for U.S. consumer confidence to have them vote on the future of economic activity as observed Eini businesses and consumers.
Table data for today includes:
10:55 change in unemployment in Germany.
11:00 Retail sales in Italy.
11:30 Net loans private mortgage certificates in England.
12:00 Consumer Price Index rate of unemployment in Europe.
13:00 Unemployment in Italy.
15:30 Growth (GDP) in Canada.
16:00 index of home prices in 20 major U.S. cities
16:45 PMI Chicago District of the U.S..
17:00 U.S. consumer confidence index.
21:00 U.S. Fed meeting minutes
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EUR / USD
Overcoming fears of traders as we approach the weekend for the data continue to put pressure on the rate and lead investors to flee the dollar, although the macro data failed to ignite the imagination of investors but did not indicate a deterioration in conditions that significantly strengthened the U.S. dollar defense, then broke the 100 average monthly (1.2803) over last month it seems that rate way to break the average back down, in this situation it seems that the dollar got enough momentum to continue to decline, but again the data published on Friday, investors will likely care Wemmshko profits along the way, rate finished the last drop of 0.77% on the cover of 1.2663, expect for the day: See Graph A.
GBP / USD
The pound continues to shuffle around the 200 daily average from a position of waiting for data from the weekend, the last trading day for a month and a technical point agenda with critical, last month, the pound managed to break and close above the average 20 (1.5542) if and succeed to make her day close above the trend of the average 20 Immigration preserve more likely to continue strengthening but below the average closing may ignite a wave of strong sales would push the pound down, the pound finished the last drop of 0.41% on the cover of 1.5461, forecast for today: see graph in
USD / JPY:
The decline in the pair is one of the pictures most obvious technical Vahpondomantaliut capital market for several months, also if investors feared the intervention of the Japanese central bank would lead to irrational movements in the dollar strengthening Hall artificial wine, arrived yesterday and proved that experience in the Japanese bank's intervention does not lead to a necessary increase in pair, On the other hand the last three years closed each month a new low for the correction led him up (the current month is closed today) and the presence of the pair of 15-year low this increases chances of any technical correction increases, the dollar finished the last drop of 0.78% on the cover of 84.55, Forecast Today: See Graph C
Gold:
Gold continued to stand on hold when investors refuse to get rid of the maintenance of confidence from one gold but yet there has been a significant run-escape gold despite sharp declines in stock markets, it appears that traders prefer to wait as much as possible, review the entire macro data traffic in accordance with the prediction of medium-term to decide whether to run or from gold, gold finished the last drop of 0.08% on the cover of $ 1,236 per ounce, forecast for today: Go shuffling between $ 1,230 to $ 1,240
Oil;
Oil falls back on track against the weaker stock markets and the increasing concerns among world traders that prevents them from entering positions, Asian indices crash at night at dawn (the Japanese Nikkei index losing more than 3.5% now) sends the oil to below $ 74 a barrel and if not there will be significant changes It seems that the direction of oil will continue to be below forecast for today: a decline towards $ 71.60
Forex Robot