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With only the Core Personal Expenditure numbers coming out during the course of the day on Monday, it’s very likely that the market will be more or less a technically driven situation. With this, we believe that some of the recent moves will continue. The one thing that we are starting to notice is that the US dollar is starting to have more and more pressure put upon it. We are not necessarily looking for the US selling a breakdown massively, just that it’s going to grind lower and value.
1 – Precious metals look as if they are going to rally during the course of the session, as the US dollar falling of course will have a positive effect on those markets. On top of that, currency markets will continue to struggle try to find a real leader, because so many central banks are trying to become so dovish.
2 – European indices will probably rise as well, but keep in mind that there is going to be a lot of volatility and therefore it’s difficult to imagine a scenario in which we are comfortable hanging onto the trade for any real length of time. Commodities will probably get a bit of a boost in relation to the falling US dollar, but do not expect miracles during the session on Monday, it will more than likely be a fairly quiet session as we simply wait for some type of momentum to pick up in order to start placing our trades.
