Wednesday, June 26, 2013

Expectations for markets for remaining week

Half a week has already passed and quite nice moves have already taken in some financial markets. As I wrote a few days ago gold continues collapsing. There have been some hopes that it has already found its’ bottom, but that is not true. 1200 dollar per ounce is very close now. As I said, 1000 would probably be it and then commodity lovers will kick in their longs. Oil will definitely try to get back to 100 dollar per barrel and it is very likely that it will succeed. 

US dollar will probably strengthen against European currencies, but lose to commodity currencies. Euro and Pound, together with Swiss Franc will be the biggest losers. Yen will probably be a moderate winner losing only to commodity currencies. Stock indexes are at crossroads and much will depend on the news from Japan on Thursday. I bet Japanese stock index will recover. It may drag down the Japanese Yen though.