USD – Economic Prospects Trouble Investors

The USD had a repeat performance on Monday basically copying its range trading that took place before going into the weekend. The USD has gained slightly against the GBP, but continues to struggle against the EUR and JPY. The questions surrounding quantitative easing in the U.S. from the Federal Reserve continue to make for a cautious market place as the merits of monetary policy are debated far and wide. Yesterday the U.S. released Existing Home Sales and they showed a slight improvement on the estimate as they came in with a result of 4.53m. However, the sentiment that pervades the housing sector in the States is still negative and today the S&P/CS Composite-20 HPI will be published and is projected to have a result of 2.4%. The CB Consumer Confidence reading will also be released and the anticipated mark is 49.3.

Tomorrow the Core Durable Goods numbers are on the calendar and the end of the week will be highlighted by the Advance GDP. The States is now going into a critical economic period in which investors will be gauging a unique mix of Fed policy, national politics – because of the upcoming election, and consumer spending. Wall Street continues to turn in gains, but its trading can be described as lacking conviction as many investors continue to sit on the fence and wait for signs of greater stability. The Advance GDP may provide some insight considering that the Fed has been issuing cautionary tones the past two FOMC meetings. Trading sentiment has centered on the belief that the Fed is going to partake in a rather strong round of quantitative easing. The USD finds itself battling the weaker side of its values against many of the major currencies.

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