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Good day koalas!
It is midweek and i hope you are green in profit from forex
In the previous review, there were growing concerns again on the possibility of requiring more than the almost 1 trillion dollars emergency lending fund. Sentiments especially negative ones are like cancer. With no positive economic data to boost the sentiments, the Euro Zone would remain depressed. Investors were also worried that the huge bail out fund would hurt the Euro Zone’s economic health in the long run.
The EUR/USD remains tightly bounded. Apprehension is high.
The S&P 500 continues to climb higher and is currently above 1160.
Oil is hovering around $80.
Gold is around $1240. This brings it higher than the previous high. This suggests that demand may be high. As gold is usually an investment of choice when it comes to economic uncertainty, risk aversion may be strong.
The Euro Zone brought us some positive news today. A Portuguese bond sale was successful and plans to reduce budget deficits made by Spain and UK increased optimism of the investors. While this may seem like an indication of good times to come for the Euro Zone, observation of the gold prices suggests underlying weakness. Indeed so, it was reported that Moody’s Investors Service cut the ratings of $28 billion of Greek bonds and left them under review for further downgrades. There are also growing concerns that the almost 1 trillion lending fund will hamper further recovery of the Euro Zone. The extreme negative sentiments with regards to Euro Zone can be further seen with the apparent lack of reaction to the positive figures of the German Preliminary GDP.
Out of the Euro Zone, economies are showing subtle signs of improvement. Housing, employment seem to be improving. However it is my opinion that the global economic is still very vulnerable to sentiments as seen with this Euro Crisis.
Tomorrow is a bank holiday for a few Euro nations such as France and Germany. We may experience low volume conditions. Having said so, there are still important data releases such as the US unemployment claims.
Bullish relief may bring the currency pair to 1.2720/800.
Further bearish assault may target 1.2550/500.
I have been spending alot of time on my blog and facebook page. However i don’t feel tired. I guess this is what they call when you are working on something you love, it is no longer work
If only i love my real work LOL MUAHAHAAHAH.
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