Morning Report: Gold up as dollar weakens
Morning Report:• Last night stock markets closed higher with the FTSE 100 up 0.97%. US markets endured a mixed session, which ultimately closed in the black. The S&P 500 closed up 0.37%, the Dow Jones up 0.3% and the Nasdaq up 0.19%.
• This morning forex markets are relatively quiet with the main theme being a weakness in the US dollar. The dollar is off by around 0.25% against most other currencies.
• The EUR/USD & AUD/USD are up 0.25% with the USD/JPY and USD/CAD down by 0.25%. It looks as though the Australian dollar has found some support above the 0.9800 level.
• The British pound appears to be slightly ahead of the chasing pack, with the GBP/USD up 0.32%.
Coming up today:
• Coming up today we have a number of middle tier economic announcements starting with UK trade balance at 09.30 London. Analysts are expecting the balance to be -8.2 bn, a slight improvement on last time.
• Following this we have European industrial production at 10.00 with a slight dip to 0.5% expected.
• For the rest of the afternoon, the US Federal reserve is the focus with a number of Fed related speeches in the afternoon along with the Beige book which is expected to put a positive slant on the economic recovery.
• The Federal budget balance is due at 19.00. The US spent $150nb more than it took in for November, While expected to be better with a deficit of $80bn.
• The Portuguese debt auction will have an influence on the tone of today’s trading. The price that Portugal is expected to pay on its debt interest is expected to balloon, but with the ECB recently snapping up European debt, it may not be as bad as initially feared last week.
Bet Idea
• After dropping below 50 period moving average on the 4th day of the year, Gold is now testing same barrier, trading at $1385.
• The precious metal’s cycle lows are getting shallower, hinting at further upside to come. The last time Gold stabilised in the middle of December, it took just less than two weeks to reach the previous highs again.
You can bet that it will do so again within the same time period with a ONE TOUCH bet predicting that gold will TOUCH $1425 at any point in the next 12 days. If successful, this bet could return 225%.
Summary:
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