The USD gained on the EUR on Monday as trading sentiment in the currencies showed divergence, this because the GBP continued to perform relatively well against the greenback. Wall Street turned in another flat performance as investors continue to show a lack of direction as they seemingly wait on the all important jobless numbers this coming Friday. The U.S. has proven over the past couple of weeks that it’s so called recovery is facing a stern challenge like its international counterparts as data has proven more than lackluster in several instances. Housing, retail, and the GDP reports have provided little relief for cautious investors. Yesterday’s Personal Spending outcome proved flat. Today the CB Consumer Confidence reading is on the calendar and a result of 62.8 is anticipated. Also the S&P/CS Composite 20 HPI will be brought forth and a gain of 3.5% is forecasted.
If Wall Street is viewed as a barometer of risk, it has shown that investors continue to have questions about the long term outlooks for the U.S. economy. The jobless data which will start to be produced tomorrow with the ADP report and culminate on Friday with the government numbers will serve as a lynchpin for plenty of volatility. Traders should also keep in mind that next Monday the U.S. will be shuttered for Independence Day celebrations. Meaning that after the big Non Farm Employment Change results are presented that investors will have to ask themselves if they are willing to carry positions over a three day haul in what have become clearly tentative markets. The USD gained yesterday as EUR centric movement once again surfaced in a negative manner. Safe haven trading appears to be the dominant theme for many investors. Traders will have to be stay aware of news events from a variety of spheres and if involved in short term positions – they will have to be proactive.
Written by bforex.com