Major Market Mover: European VS American

Daily Forex Fundamentals | Written by Crown Forex | Sep 12 08 07:27 GMT |

Reaching to the end of the week and Lehman brothers co. keep on looking for the suitable rescuer before they file for bankruptcy, negotiations with Korea Development Bank failed, and any prediction that the government intervention is not available at all, but some potential buyer are queuing up to rescue the leftover. Rumors diffused in the US session yesterday, that the Bank of America is among the potential buyers, yet the final decision is not out and prediction points out that later this weakened Lehman Brother will decide on who will be Hero taking all this burden. Even when markets remain to struggle with more fall down in their financial sectors, the US dollar continue to be the main winner in this entire dilemma; majors are not recovering vastly, as remain to struggle at their low levels. The Euro managed to rise up to 1.4005 levels in the early European Session recovering from the low recorded yesterday at 1.3882 levels; in addition to the Royal currency rising from yesterday's low at 1.7449 levels to trade today at 1.7600 levels. Fundamentals on the calendar are restricted on the Europeans and the Americans only today. The second quarter Employment data are to be released today; in addition to the monthly Industrial Production fell in July 0.2% from the previous flat reading, expectations proves that the yearly production fell 1.0% in July from the precious fall of 0.5%, clearing out that the surge in oil prices curbed the levels of production in addition in the appreciating Euro that made the European goods less appealing among competitors. Moving to the Americans; Producer Prices might have eased in August as pressures eased due to the falling oil prices, expectations points out that producer prices will ease in August falling 0.5% from the previous rise of 1.2%; on the year prices will rise to 10.2% from the previous rise of 9.8%. The Core monthly prices eased to a rise of 0.2% from the previous 0.7%, while the yearly prices surged to 3.7% from the previous 3.5%. Jobs layoffs and lower consumer spending due to the decreasing household incomes would have weighed upon the retail sales in States, the sales less Autos might fall 0.2% from the previous rise of 0.4% for the first time is six months, where the Americans don't have extra cash to spend on expensive products, but the normal retail sales in August will rise 0.2% coming better than the previous fall of 0.1%, a prices eased opening the door for the Americans to have an extra cash just to revive the output slightly, yet we have to keep in mind that the fall downs taking place in the States can't just to be compensated by the fall in oil prices Finally we would wrap up the week with the University of Michigan Confidence Survey, expectations points out that confidence is being restored back in the US economy rising to 63.9 levels in September from the previous 63.0 levels, the rising levels gives out some peace in investors' minds as they might see an improvement in the US economy in the upcoming period. My dear reader outlooks are not changing, the American economy is on the right track of improving and the European will remain to face the downside risks to growth… Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.