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---Volatility continues to widen daily movements --

Published 11/02/2008, 07:00 PM
Updated 12/31/2017, 04:40 AM
This week we have presidential elections on the US, Senator Barak Obama has the lead in almost every poll but there’s still hope for Republican candidate John McCain. Although we believe that ultimately there won’t be much difference on the markets with any of them as president, we still see some uncertainty on price action and recommend to remain mostly out of the market until we get news of who is getting the White House and how the market is reacting. The same recommendation goes for the upcoming rate decision from both ECB and BOE. We recommend waiting to see the market react to the news because we’re not completely sure of how a rate cut will be worked out by traders. As well as the “buy the rumor sell the fact” factor. Try to get in and out as fast as possible if you have to trade during the week, of course if you see an opportunity don’t hesitate to take it as volatility will help you multiply your usual gains.


We begin the week with ISM on the US, followed by a very important Tuesday with PPI and Elections throughout the whole day. Keep your favorite news channel on, as during the day we will be getting updates of how things are going for both democratic and republican parties. Wednesday we will get retail sales and most likely the market will be setting up things to receive rate decisions on Thursday by both ECB and BOE. The market is anticipating rate cuts from both central banks, the question now is how much will they cut? And if they do cut them at least 50 bp, how will the market react? We recommend waiting for the actual news to come out and the market begins to react, then you will have a clear vision of what is going on and you can jump into action and benefit from the actual volatility. Friday will bring Ger. Trade Balance and Non Farm Payrolls on the US, these will be very important as they bring numbers of the hurting economy in the US. Later on we get unemployment which is expected to continue rising to 6.2%.

HIGH: 1.2900


LOW: 1.2480


CLOSE:1.2540


           
Have a nice week and please remember to focus and be patient.


[Ing. Bernardo A. Martínez Garza
  Socio-Director
  Rio Missouri #448
  San Pedro N.L.
  T. (+)52 (81)8004-1030


01800-00-NEXUM


*De ser mi primer contacto hacia usted, le pido dé respuesta de recibido para mejorar nuestra comunicación.


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