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Market Briefing for 12/11/2008

Discussion in 'Market Predictions and Reports' started by dojit, Dec 11, 2008.

  1. dojit

    dojit Private

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    After a volatile session in the U.S yesterday the major indices managed to climb towards the closing bell, finishing in positive territory. Expectations that the auto-industry bill is going to be a done deal increased sentiment across the board despite a gloomy economic outlook. After yesterday’s agreement by political parties, the house sent the plan to the senate today for final approval. U.S citizens are waiting on tender hooks for an approval, as a rejection could cause the auto-industry to collapse and will surely be a major blow to the economy. To date the industry, including General Motors, Ford and Chrysler employ millions of workers across the country. Bankruptcy of industry leaders like those will surely have a large impact on unemployment and on the future health of the U.S economy.
    Most of the sectors in the U.S closed positive yesterday, apart from the financial sector that weighed on the indices throughout most of the session. The Major indices closed the session with gains of approximately 1%.

    Crude Oil has plummeted over the last couple of months, reaching a low this week of $40.81. A rising stock market could affect this battered commodity, helping it rise due to overall momentum in the markets. Resistance of 900 on the S&P should be carefully watched as a break could lead to an overall bounce in the markets.

    Gold had a miraculous session yesterday climbing by 4.47%. The gloomy economic situation is still driving investors into this safe-haven, keeping this commodity afloat. Resistance of $850 should be observed by commodity traders, especially if the auto bailout plan is approved.

    The Forex market yet again showed an interesting session starting yesterday and going on through early hours today, as risk aversion continues to have a major impact on the various currency pairs. Even though the Dollar Yen pair increased during yesterday’s session, fears that the U.S senate will not approve the plan are sending carry traders back to the Yen. According to new’s headlines yesterday, the USD/JPY is currently at a critical junction, one that according to Governor Masaaki Shirakawa could involve government action, if the Yen falls below 90. Other pairs are also trading at critical levels, with the USD/CAD now trading on trend line support and the AUD/USD around daily resistance. The EUR/USD broke resistance of 1.3080 earlier this morning and is now driving forward due to buying momentum.EUR/USD Bullish traders should take into consideration upcoming resistance of $1.3261.
    Looking forward, a wave of economic data will hit the boards today starting with data from Canada that include a closely watched new home sales figure. Furthermore the U.S will be releasing their import and export data and New-Zealand will show how their retail sector is dealing with the recent global slump.

    Best
    dojit
    Dojit - Uniting Trading Ideas, Forex school, Forex education, Economic articles
     
    #1 dojit, Dec 11, 2008
    Last edited: Dec 11, 2008

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