Equities Losing Steam, Brace For Correction To The Downside

Daily Forex Fundamentals | Written by AC-Markets | Nov 26 08 01:03 GMT |

Market Brief The dollar was weaker after a volatile session sliding against most of the majors. The EurUsd rose 95 pips to the mid 1.30 level, while the UsdJpy dropped over 200 pips to the low 95 price area. The GbpUsd gained nearly 300 pips, trading through previous resistance toi 1.5470. Equities closed higher after a day of violent price swings in the excess of 100pts. Asian equity futures are pointing to a lower open, which may be the precursor to a slowdown in the recent rally in global stock markets. Bond yields were mostly the 2 and 10yr higher by a bp, and 30yr slightly tighter. Commodities are beginning to trail off as crude oil falls 7% to $50bbl, and gold marginally lower at $820oz. The market disregarded an ample amount of economic data released in Europe and the US, as FX prices continued to trend with stock prices. Additional action taken by the govt. ease market stresses through TALF (Term Asset-Backed Securities Loan Facility) has mild success but the real effects are likely to be felt further into the down cycle. Negative GDP growth in the US and Germany confirm worsening economic conditions, and should serve as warning signs that major price corrections in the FX market may be ahead when fundamentals return. ACM FOREX Disclaimer: This report has been prepared by AC Markets (thereof ACM) and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Salesperson or Traders of ACM at any given time. ACM is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.