Forex has been tranquil, but the U.S Dollar remains relatively strong. Manufacturing data will be important early this week.
Lack of Conviction among Traders, First Quarter Results Poor
Asian markets have displayed some risk appetite as they have essentially traded on their own since Friday. In early action today the Nikkei Index and Hang Seng composite have added modest gains. Manufacturing and Services data from Japan today came in slightly below estimates. However, early on Saturday, Manufacturing numbers from China were improved. While the European markets will remain mainly closed for the holiday, the U.S markets will open today. Wall Street was able to put in solid gains on Thursday but did finish the first quarter of trading with questionable results. Broad market sentiment globally remains nervous and traders cannot be blamed for lacking conviction.
Extremely Quiet in Forex, U.S Dollar Relatively Strong in Cautious Conditions
The U.S Dollar has remained within its stronger stance since last week. The Euro and Pound have been extremely quiet and until full market volumes return tomorrow investors will remain cautious in forex. Manufacturing and Services data will dominate economic statistics early this week. However, jobs numbers from the U.S which will climax on Friday with the Non-Farm Employment Change figures, and the ultra-important Average Hourly Earnings report will impact forex. The Yen has remained relatively weak early this morning.
Low Volumes Dominating Gold Market, Short Term Trends Can Reverse
Gold has gained slightly this morning in Asian markets. The precious metal is near 1330.00 U.S Dollars. However, thin market action should make traders view results suspiciously as low volumes continue to dominate, meaning short-term trends can reverse rapidly.
U.S Manufacturing Reading Today, Construction Data from States
The U.S will see important Manufacturing Index numbers at 14:00 GMT today, which could prove interesting for traders.
- 14:00 PM GMT U.S, ISM Manufacturing Index
- 14:00 PM GMT U.S, Construction Spending
Yaron Mazor is a senior analyst at SuperTraderTV.
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