After last month Fed's .5% surprising cut. The interest rate outlook uncertainty has caused volatility in the treasury market and currency market as well. This week awaited ISM and PMI figures are important to realize how far the impact of the crises in EU and UK can be. We wait also for the US labor report which is expected to negatively further for the second month after the recent weak consuming data as the Conference Board's consumer confidence survey is at to 2-year low and the business spending worries which have followed the sub-prime problem.
Last week US housing sales data have continued the decline in a faster pace than expected especially the new housing sales which tumbled by
8.3% to 795,000 units in August and also the existing home sales was down 4.3% at 5.49 million units versus 5.75 million units in July effecting negatively in the current market confidence which has started to be built after the Fed's cut to show that the risk still exists and the worse of the housing data is still ahead.By God's will, the gold is expected to keep its recent gains especially on weak PMI figures and high price paid indices which can refer to further probability of stagflation and a recession.
Best wishes
FX Consultant Walid Salah El Din Mob: +20 12 465 9143 E-Mail: snipped-for-privacy@fx-recommends.com