Simultaneous Release at
Good day forex trading koalas.
One more day to the end of the trading week. Green with pips you must be! Without emotions you must trade.
Yesterday a report stated that China’s exports surged. This suggested that global trade is still moving and sentiments improved. This together with the comments made by Fed Chairman Bernanke on the “moderately paced” recovery of the US gave an uplift to the markets.
In Europe, calls for accelerated action by France and Germany to curb financial speculations brought positivity to the markets too. The call was to ban bets against stocks and government bonds. The German Chancellor believed that speculators had a role to play in the Euro Zone budget deficit crisis and the fall of the Euro currency. The combined effort seen between the two leaders of the two largest economies was a welcomed sight.
Looking at the currency pair above, i cant help but shamelessly boast again. I LOVE IT WHEN MY CHARTTTTTTTTTTTTTTTTTTTTT works! 1.2135 was tested and rejected for now.
S&P500 is up at around 1078.
Oil is holding at $76.
Gold is down at $1220. This suggests risk aversion is lowering further as gold is normally in demand when the sentiments are stressed.
Japan and Australia joined the economic growth club. Together with China, the markets are seeing an uplift of sentiments from the growth reports. An opinion on this would be that the global recovery definitely seems to be headed by the Asian region. This is the new economy.
ECB’s Trichet said that the ECB will continue buying bonds to ease the crisis affecting the Euro Zone. The ECB has plans to extend more assistance to troubled financial institutions struggling to raise funds in money markets. With the current Euro Zone crisis, withdrawal of the emergency stimulus measures made during the days of the 2008 crisis will have to wait. This suggest that low interest rates will be here to stay for sometime, something not popular with investors.
Over across the Atlantic, US unemployment claims came out worst than expected, raining on the parades of the US strong recovery fans. This suggests that the labor market is not as strong as expected. Layoffs remains a risk and hiring needs to pick up further.
US Federal budget will be released later, probably showing a .. yes no prizes for scoring right.. deficit. Later on tomorrow we expect among others, important data such as the US Retail Sales.
From a technical point of view, a bullish conquest of the 1.2135 line may see us potentially crossing to a new range. A bearish strike back may hammer the EUR/USD back down towards 1.2.
Man. Nothing is worst than a headache except an even worst headache! My crazy migraine is making me spin like a record. “You spin me right round, baby right round like a record, baby Right round round round “
Related Forex Articles from the Koala Forex Training College.
Read more Forex Articles and Views by The Koala at
©2010 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.