The US equity market could cover its earlier loses by the end of last week weighing on the greenback across the broad even versus the Japanese yen which always comes under pressure amid the stocks market rising and the increasing of the market risk appetite on its very low interest rate . The worries about the demand for the US treasuries could contain the market sentiment increasing the market speculations of a Fed's hiking interest rate for attracting demand for these treasuries amid the current rising of the commodities and oil price. But the rising the demand of the US treasuries on last Thursday auctions could calm the market down brining the optimism of the release of consumers confidence of May on the spot again which came stronger than the market widely forecasts of 42 at 54.9. The number ensured that the worst has become behind of us and there is growing confidence in consuming in spite of the great deal of lost jobs because of the credit crisis which effect negatively on the consumers' confidence and By God's will, we will wait by the end of this week for the release of US labor report of May to watch a fewer number of lost jobs in US. The non-farm payroll is expected to be -520 in May from 539 in April but before this, we wait tomorrow to watch another improving of the US ISM manufacturing index even by a gradual pace. The figure of April has come at 40.1 and we wait for 42 in May and if we can have a better number, this can add to the current market optimism and the US equities market gains.
Also, It looks that the gold can find a place above 1000$ this time amid rising of the commodities and energy prices and these current worries about losing confidence in the US treasuries which are the other options of the investors who want to take a safe position. The worries about the US treasuries future are expected to be the next threats to the US economy as they carried the mortgages bad loans by exchanging them and also they were the Fed's pumping funds way to the US government to support economy also they have tried to sallow the toxic assets of the banks balance sheets which can poison the US creditability itself!.
The gold has met a resistance at 966.80 which was the lower high of this year on March after the formed high of Feb at 1006 but getting above it last week makes the 1000$ psychological level very vulnerable. The gold could form double bottoms last month at 864.90 and 864.50 and then started to make higher lows at 878.85, 914.95 and 945 which was its previous resistance 945 and this higher bottom and successful test could encourage it to break 966.8 this time.