6/9/2007 - the current market sentiment

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6/9/2007 - the current market sentiment fxrecommends@gmail.com 09-06-2007
Posted by fxrecommends@gmail.com on September 6, 2007, 12:08 pm
Yes, the gold could come back again to 680 - 700 levels as what I have
mentioned to you on the growing expectations of interest rate holding
in Europe and UK and the increased expectations of a cut in US. All of
these can decrease the central banks ability to fight inflation adding
to the gold.

This is a part of last week analysis underlined

However the waited Fed's cut currently can add to the inflation
pressure which can bring the gold back to the 680 - 700 levels. I see
it as one of the preferred instrument to buy at this case.

Yesterday, US House pending data of August came lower than
expectations at -12%. The market was expected just -2% which shows
that the sub-prime mortgage loans problems is strong and can have
further negative impacts in the future of the US economy and financial
markets however the ISM manufacturing data came at 52.9 just below the
market expectations of 53 and today's ISM non-manufacturing one came
above expectations of 54 by one point at 55.8 but the 38k of ADP
release yesterday is still adding to the greenbacks woes as we are
waiting for the release of the non-farm payroll tomorrow.

Today's holding interest rate unchanged in EU and Trichet's press
conference show that the impact of the financial crisis is well-
considered but Trichet has tried to calm down the markets referring to
the EU growth strength and this can be considered as a correction in
the EU strong growth trend.

So, the currency market focus is still not away from the stock market
between the carry trades getting use again of the interest rate
differential and its outlook or another unwinding wave can push the
Japanese yen higher and the USD across the broad because of the
selling in the stock market and buying the US treasury notes.

The volatility in a mixed vision can continue to be the mark of the
markets currently as the steep decline in the stock market due to the
crisis and from another side the central banks tries to install the
stability and the trust to attract funds taking risk again!

God Willing, tomorrow US labor report data is important to show the
need degree of the job market of a cut buy the end of this years.

Best wishes

FX Consultant
Walid Salah El Din
Mob: +20 12 465 9143
E-Mail: mail@fx-recommends.com
http://www.fx-recommends.com


Posted by Flasherly on September 6, 2007, 8:01 pm
wrote:
> Yes, the gold could come back again to 680 - 700 levels as what I have...

>
> The volatility in a mixed vision can continue to be the mark of the
> markets currently as the steep decline in the stock market due to the
> crisis and from another side the central banks tries to install the
> stability and the trust to attract funds taking risk again!
>

A charted game of ping-pong, disdainfully seen for reactive,
nevertheless with increasingly strong residuals attracted to defensive
and safe-play sectors. The incentives are there with ADRs showing a
headwind comeback profit, alongside an alterego, a downside risk fresh
in mind for anyone outside and weathering the past few weeks.
Government and financial agencies, as if by necessity, are pulling in
unison. A good sign, as if all along what we all suspected, that
fundamentals lend reasoning lay otherwise, that assurance follows
favoring contained growth. At the national level is the issue of a
subprime spitball concocted by creative financing. Alternatives are
now at stake for the misinformed gullible, the poor and downtrodden,
and indebted, huddled masses. Up to their chiney-chinchins. Risk,
however, is not what the FED is endorsing: Bake your own in a hot
kitchen, they've emphatically stated numerous times, as they're not
about subsidizing A/C.


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