1/10/2007 - The current market sentiment

After last month Fed's .5% surprising cut. The interest rate outlook
uncertainty has caused volatility in the treasury market and currency
market as well. This week awaited ISM and PMI figures are important to
realize how far the impact of the crises in EU and UK can be. We wait
also for the US labor report which is expected to negatively further
for the second month after the recent weak consuming data as the
Conference Board's consumer confidence survey is at to 2-year low and
the business spending worries which have followed the sub-prime
problem.

Last week US housing sales data have continued the decline in a faster
pace than expected especially the new housing sales which tumbled by
8.3% to 795,000 units in August and also the existing home sales was
down 4.3% at 5.49 million units versus 5.75 million units in July
effecting negatively in the current market confidence which has
started to be built after the Fed's cut to show that the risk still
exists and the worse of the housing data is still ahead.

By God's will, the gold is expected to keep its recent gains
especially on weak PMI figures and high price paid indices which can
refer to further probability of stagflation and a recession.

Best wishes

FX Consultant
Walid Salah El Din
Mob: +20 12 465 9143
E-Mail: mail@[EMAIL PROTECTED]