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The EUR/USD continued its bearish momentum and is nearing the strong line of 1.3600.
The S&P 500 continues to hover between 1080 and 1060. Negative pressure is mounting as it repeatedly tests 1060.
Oil is currently at $73+. There are speculations that this may be pressure from tensions with regards to Iran.
Gold in the meanwhile rose despite the US Dollar strengthening. It is currently valued at $1077+ and as gold may be a choice of investment when the global economy is apprehensive, we may be seeing risk aversion here.
The EU leaders discussed about the Greek deficit problems and were prepared to take “determined” action. While this sounded extremely positive, there were unfortunately no concrete plans announced and the market was disappointed. With that, investors will begin to worry about other potential hot spots. Spain and Portugal are in the list.
The US Unemployment Claims turned out better than expected and investors may see this as a sign of strengthening US economy. While it is good to be positive, let us not jump onto the train without other signs of sustained recovery.
We must remember that the world’s economy is connected. Even if the US economy is poised to perform well, the troubles of other economies may weight it down like an anchor.
Tomorrow brings us important releases such as the German Preliminary GDP and US Retail Sales. Both are core to the economy and hence be careful of unexpected spikes.
Bullish momentum may bring us back to 1.3680/1.3740.
Further bearish drops may test 1.3600/1.3550.
The weekend is approaching and i am looking forward to it! I am planning to write new articles to explain more about the forex market for newcomers. If you have any ideas, feel free to let me know!
Read more Forex Articles and Views by The Koala at www.thegeekknows.com