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Good day to all!
How was your weekend? I hope it was great!
With the US on a bank holiday, things are going slow.
With the lower than usual volume of trading, mainly due to the US holiday and Lunar New Year holiday for many of the Asian countries, the EUR/USD maintained a narrow range.
The S&P 500 is on holiday today. However last Friday’s close brought us to around 1076. This suggest that the market may not be ready to move above 1080 and continue on the road of recovery.
Oil is around $72.
Gold is valued at $1100+ now and this is an important point to note. Gold is priced in US Dollar and with the US Dollar getting stronger these days, the pressure is on Gold to fall. However with this significant increase, we may be seeing additional demand here. Gold is often the instrument of choice when it comes to market uncertainty and hence we may indeed be heading towards rough weather.
It has been reported that the European Union’s top economic official mentioned that Greece should step up on it’s effort to cut it’s large budget deficit. Evidence surfaced, suggesting that Greece may have used swaps to conceal its increasing debt. Furthermore, it was reported that the Greek Finance Minister had been quoted agreeing that Greece is indeed in a terrible mess.
As i mentioned previously, investors do not like a troubled country and hence they will be apprehensive. Furthermore as Greece is part of the EU, investors will probably be concerned about the stability of the EURO too
Tomorrow brings us two major releases. The German ZEW Economic Sentiment and US TIC Long-Term Purchases. With the Eurozone facing difficult challenges these days, sentiment indicators may be a release to watch out for. A poor release here may spark further risk aversion. With regards to US TIC Long-Term Purchases, an increase in foreign investments may be a sign of increasing confidence in the US.
Bullish momentum may see 1.3680/740.
A bearish resumption may test 1.3550/1.3455 next.
Did you have a good valentine’s day? Remember to always cherish your loved ones. For me, i had a quarrel with Ms Sleep again and she may be leaving me for good. I need to spend more time with Ms Sleep. Arrgghh!!
Read more Forex Articles and Views by The Koala at www.thegeekknows.com