Calm Day Expected While the G20 Meeting Remains the Focus of Investors
A calm session seems to be waiting investors since government offices, banks, and the bond market will be closed, as Americans celebrate Veterans Day, although stock markets will be opened, nevertheless, we still expect a very calm session, while this was further evident in the FOREX markets, where major currencies continue to trade within limited ranges.
The U.S. dollar rose against most of its major counterparts, where the U.S. dollar index which measures the performance of the U.S. dollar against a basket of currencies including the Euro, the Pound, and the Yen, rose slightly to trade at 77.78, compared with the opening levels at 77.61, while gold prices rose back above the $1400 barrier and seems to be approaching its all time record high, while oil also rose to reach the highest level since October 2008 above $88 a barrel.
The United States has come under intense pressure recently over the dollar’s weakness, where the latest effort from the Fed to conduct Treasury securities purchases worth of $600 billion sent the dollar to the ground, while igniting fears among the G20 countries that the U.S. was deliberately weakening the dollar in order to support its economy.
Nevertheless, U.S. Treasury Secretary Timothy Geithner signaled in an interview with CNBC that the United States would never do such a thing, as Geithner signaled that a weak currency strategy was not effective, while Geithner also highlighted the need for cooperation among the G20 countries in order to have balance all around the globe and make sure that international banks hold more capital in order to avoid future crises.
Investors shouldn’t expect a lot to happen today since economic calendar lacks any fundamental releases, while the main focus this week will remain the G20 Summit and whether global leaders can reach middle ground to avoid a currency war, while also making sure that global economy can continue to grow…