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Good Monday Koalas!
Blues getting to you? Kicking dirt into your eyes?
Get angry you dont! Take a deep breath and face the challenge! Life goes on
Yes, you know where this is going to. The EUR/USD is having a bluish Monday of it’s own too. Let us take a look at the current price action.
After testing the strong line of 1.38 last Friday, the EUR/USD took a dive and is currently testing the 1.3680 support. Altogether now, ” We love it when the koala’s chart works.” YES! Nothing beats shameless self praise on a Monday.
On a similar note, the S&P 500 takes a break from a bullish ascend and is heading towards 1140.
Oil drops to $77+. This may indicate that the anticipated recovery may not be here yet as oil can be a clue to the global economy’s health.
Gold remains unaffected at around $1103+. Demand for gold may be holding it steady. As gold is an investment of choice when it comes to stormy financial weather, risk aversion may be present.
The TIC Long-Term Purchases report came out much lower than expected today. This report measures the difference between foreign long-term securities purchased by US citizens and US long-term securities purchased by foreigners and hence it is an indication of foreign demand for US securities.
As the actual data is much lower than expected, risk aversion may be happening as investors seek to make sense of this sharp drop of overseas demand for US securities. Two biggest holders of the US treasuries, China and Japan, reduced their holdings. This is contrary to the positive belief of the pace of recovery for the US economy.
Next up, investors are also concerned with regards to China and now India. These economy giants are sizzling with growth and investors fear of a curb of growth to contain inflation. Furthermore, it is greatly believe that these giants spur the global recovery on and hence any premature curb in growth may extinguish the fragile recovery.
A report i saw today gave me quite a bit to think about. Moody’s Investors Service said that the US and UK are “substantially” closer to losing their AAA credit ratings. This is considering the fact that both nations are spending about 7 percent of the year’s revenue on debt servicing. Keep a look out for this and remember you heard it first here at TheGeekKnows.com ( Unless you read the report yourself too )
Tomorrow brings us a number of economic releases including the important German ZEW Economic Sentiment and the US Building Permits. Be careful of unexpected spikes.
Bullish relief may bring us to 1.3740/800.
Further bearish developments may test the support of 1.3600/550.
Woah, a koala recently asked me” With all this articles that you are churning out, how can you manage time? How can you trade?” YES I CAN! When a “chore” is a passion, the meaning of chore disappears. I love writing articles and reviews for koalas. Every time when you send me an email or facebook message to say thanks, i am beaming with a smile
Surely the time must have came from somewhere right? Yap indeed. My issues with Ms Sleep are getting worst. We only spent 4 hours yesterday together.
Gtg! Trade Safely ( Remember ! Add me on facebooook !! )
Read more Forex Articles and Views by The Koala at www.thegeekknows.com