Simultaneous Release at www.thegeekknows.com
Good day koalas.
The bulls are running the show today!
The EUR/USD rose and tested the 1.3680 line, giving me an opportunity to boast shamelessly again! I LOVE IT WHEN MY CHART WORKS!
The S&P 500 rose too on renewed risk taking.
Oil approaches $75 as of now and suggests that the commodities are receiving attention as well.
Gold climbs to $1115. The weaken US Dollar and demand for gold probably gave it its run.
So why are the bulls on the move today?
Firstly, the Greek deficit problem received some relief when the Finance Minister said that “There’s no actual need for” a bailout. While this sounds encouraging, we must remember that action speaks louder than words and hence we must continue to monitor the situation.
Next we have the German ZEW Economic Sentiment coming in higher than expected. Investors probably see this as an indication of better trading conditions and became less averse. Do note however that overall Euro ZEW Economic Sentiment is lower than expected.
Over at the US, the Empire State Manufacturing Index which surveys about 200 manufacturers in the New York State on the relative level of general business conditions came in better than expected. Besides that the TIC Long-Term Purchases came in better than expected, suggesting good demand from foreign investors in US long-term securities.
As you can see, the multiple good releases from the various economies probably generated positive sentiments and brought the markets up. Having said so, we must always look on both sides of the coin and hence not presume that this is a new bullish trend. The Greek problem remains to be solved and the threat of Spain and Portugal developing major problems still remains. We must also remember that although not given significant attention these days, the US’s budget deficit still remains a huge amount waiting to be solved. If any signs of trouble show up, expect risk aversion to surface.
A number of releases are due on both sides of the Atlantic tomorrow including US’s Building Permits. Home sales usually spur economies and Building Permits is the early indication of future home sales activity. A good figure here may indicate future benefits to the economy’s health.
Resumption of the bullish momentum may bring us to 1.3680/740.
Should the bears strike back, next will be 1.3600 followed by 1.3550.
LOL. My toilet bowl is choked! I was doing some house cleaning and i thought what the heck! Just throw the few pieces of wiping tissue into the bowl and flush…. ARRGGH. I tried flushing a few times and pouring pails of water. Nothing works.
Guess i have to call Mario in. ( YES MARIO IS A PLUMBER )
Read more Forex Articles and Views by The Koala at www.thegeekknows.com