Simultaneous Release at
Good Monday forex trading koalas!
Are you feeling blue? Let me drive all your blues away ~ ~
Continuing where we left off, i reminded everyone during the weekend that the crisis is still far from being over. The US faces problems with it’s housing and employment. The Euro Zone, faces a fragile recovery from it’s budget deficit crisis. Everything hangs on a fragile balancing pole.
With the EUR/USD right at the 1.28 region, this week is probably an interesting one.
Looking at the EUR/USD Chart above, the week began bullish as the currency pair crept above 1.28 and is now facing resistance near 1.288. Another bragging example that I LOVE IT WHEN MY CHART WORKS ! yay
The S&P 500 was beaten down and is now at 1080.
Oil too has retreated since and is now at $75+.
Gold is soaring high at $1220+, showing that it probably remains as one of the most popular investment of choice when investors are risk adverse. The risk aversion patterns in the market are strong.
While the US TIC Long-Term Purchases today came out stronger than expected, indicating foreign demand for the US securities, the market is concerned with regards to the housing problem.
A home builders confidence index in the US fell to a low since March 2009, suggesting that the housing industry faces depressed sentiments. Particularly more since the government tax credit expired. As housing is a good stimulus for the economy, wider implications may happen.
In another report, China has surpassed Japan as the world’s second largest economy. This means that any economic development in China will have far reaching effects. We already see this at the moment when any adverse developments in China causes a stump in the global sentiments. It was reported that China is looking at having more of it’s reserves in Euros and Yens instead of the US Dollar on concerns towards the troubled US economy. If indeed so, this may spell trouble for the US.
Tomorrow brings important data such as the German ZEW Economic Sentiment and the US building permits.
Remember some time back i warned that the media seems to be refocusing their bashing on the US? It may appear so for now and everybody, NEVER underestimate the power of the media.
I had too full a dinner earlier and i am feeling weird.. however i love eating.. i really do.. just like a koala! munch munch munch yummmmmy.
By the way, do you koalas love the first Youth Olympics is underway? Cool!
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.