The greenback is still under the pressure of the gains of the equities markets and the increases of the investors risk appetite joining this rally of the stocks. Dow could cross its year high last week closing above 9000 giving further momentum to this pulse wave which has been triggered just above 8000 since nearly 2 weeks by Meredith Whitney's upgrading of Goldman sacks stocks to buy from neutral expecting it go up 30% which means about 186$ per share which put pressure on the greenback supporting the investors asking for the British pound and the single currencies for taking risk and joining this wave which continued this week too after last week strong containing and bullish closing which brought S&P future from 865 to 940 at its close and it is now trying for making a new year high breaking 960 trading right now at 955. The Japanese yen has come under accumulated pressure from the gains of the equities markets too which encouraged the investors risk appetite to carry high yielding currencies selling the low yielding currencies for taking risk again joining the current market confidence with the optimistic release of US new home sales which of June which reached to
384k and they were forecasted to go up to 350k from 342k in May. last week, Bernenke has refereed in his testimony in from of the congress to the current weakness of the labor market which can effect negatively on the consuming spending downplaying the inflation upside risks in the next 2 years and there is no change of the fed's easing policy before an improving of the labor market and he has repeated during the weekend the increasing possibility of recovery amid further loses of jobs can bring the unemployment rate above 10%. God willing, the market eyes will be focusing today on the release of July US Conference Board's Consumer Confidence consumers survey which is expected to be 50. The release of June has triggered a selling off in the equities market as it was expected to be 57 and it has come down to 49.3 giving doubts about the pace of this halting recovery. By the end of last week, we have seen US July consuming sentiment survey of University of Michigan final reading coming down to 66 and it was expected to be 70 after the dovish preliminary reading which came down to 64.6 and it was expected to be 71. The market is in need to see the consuming pace in a better look to keep driving the stocks higher restoring the confidence in the recovery. So, if we are to have further disappointing release, this can cause a shock today to the stocks holders which can cause a profit taken in the equities markets in a times may be earlier than it was expected widely bringing the weakness of the recovery on the spot. Best wishesFX Consultant Walid Salah El Din E-Mail: snipped-for-privacy@fx-recommends.com