UWC Currency - page 15
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28.09.2011
Short rally ends
in new volatility
After two days optimistic rally the markets in Asia were last night back to normal. Futures for Europe and US
are pointing down. Commodity prices are lower, and the EURO which got a boost following rumors on an
orderly Greek default, dropped back to Euro/USD 1.3559. USD/Yen is trading on 76,58. Oil is down 1,5 %
(NYMEX 93,50 and Brent 106,35)
September has been one of the worst months ever for commodities. Copper, zink and nickel have fallen steeply on
assumptions on lower economic growth, and even precious metals as gold, silver and palladium saw falls
between 10 and 20 %. There is no comfort for the metals that October traditionally is one of the worst
performing months for metals.
The rally over the last two days have been based on expectations and hope rather than fundamentals. the Merkel/
Papandreou meeting was marked by positive rhetoric, but Greece seems to heed closer to a default for each
passing day. New consumption and production figures coming from the US later today is not expected to
give the market any relief.
29.09.2011
Greece again
sink markets
The Euro/USD is slightly up trading at 1.3661 this morning on expectations that Germany today shall ratify the next debt tranche to Greece. The upturn in Markets experienced over the last couple of days, came to a quick halt in Europe, US and Asia, on renewed fears for a Greek default and its consequences for the Euro and the world banking system.
Commodities continued its free fall with dramatic day trading eases in both precious metals and commodities. Oil price fell to NYMEX 79,50 and Brent 103. Silver fell more than 10 % from a Wednesday high on 32,50 down to 29 on intra trade in the US, recovering to 31 this morning.
The markets are extremely volatile with the smallest news and rumors creating havoc and big swings during daily trading. Till the Greek debt package has been ratified by national parliaments, the most important during this week, markets shall continue to be extremely volatile.
03.10.2011
Sell off
continues
Sell off of shares continued in Asia this morning with Hang Seng dropping 5, 4 %. The sell off came on top a dismal third quarter which saw stocks falling 25 %. October is traditionally one of the worst performing months in stock markets.
The Euro continues tits slide towards other currencies. EURO/USD trading at 1.3319. Oil prices (NYMEX 78 and Brent 101,85) are trading at lowest levels in one year. The sell off in Asia is due more to foreign investors taking profit and cutting losses elsewhere than weaker fundamentals. Industrial output in China is up in September. Gold is stabilizing on 1630. Silver is also up since last Friday.
Uncertainty continues to dominate in the EURO-markets. Obama added his worries stating that Eurozone debt crisis clouds the global horizon. EU finance Ministers meet in Luxembourg today amidst growing concern on Greece. No clear solution seems in sight with continued political bickering. The austerity measures are adding to the pain. The Greek GDP is expected to fall 5,5 % in 2011, much steeper than predicted.
From outside Greece seems on the brink of a social collapse. Demonstrators are crowding the streets, and a new general strike is announced for Tuesday.
Expect a new volatile week with continued opportunities for traders who read the rends correctly.