Good Morning Koalasssssssssssss !!!
You got the blues, i got the blues WE got the blues!!!!!
Last week, we finished Friday with the US Non-Farm Payroll showing the biggest gain of jobs in 3 years and investors definitely welcomed the good news.The US Dollar rose in value in the knee jerk reaction that followed. However we must also note that unemployment remains high at 9.7%. A high unemployment figure will continue to weigh down on the economy.
Looking at the EUR/USD, the bullish momentum triggered by the US Non-Farm Payroll seems to have stopped for now.
The S&P500 continues its climb and this chart above definitely suggests one thing. The sentiments toward the US economy is very positive. However as i always say, sentiments are not always hand in hand in real fundamentals.
Gold is trading at $1127+ at the moment. It seems to be affected by the climbing commodities prices. On the other hand, it may also be demand due to anticipation of stormy weathers. Gold seems to be a popular investment of choice during times of uncertainty.
Many markets are closed today for Easter and hence the bullish climbs we are seeing now may not be indicative of the entire global market. Having said so, the great US Non-Farm Payroll data last week probably spurred optimism about the US and global recovery. Adding on to the party , the US ISM Non-Manufacturing PMI and Pending Home Sales were better than expected. This probably adds more fuel to the optimism train of the US! As home sales can be beneficial to the economy, investors should be relieved to see a good figure.
While i hate to rain on the parade, we must be aware of a few matters. Firstly, while the US NFP numbers were good, unemployment rate of the US remains high at 9.7%. This will weigh the US economy down like an anchor. With regards to the Pending Home Sales data, the good data may be the result of a tax credit due to end at the end of April. Investors will be watching how the home market performs after then.
Tomorrow will be a day light on news and hence action may be limited. Nonetheless do note that as markets open up after a holiday tomorrow, the initial influx of orders may cause spikes.
Bullish action may bring us back to 1.3550/600.
Bearish attacks may target 1.3455/400.
Ok . . today wasn’t a smooth day for my day work. I am probably going to sleep soon. When i wake up, it will be Tuesday! Monday blues only happen on Monday right?
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