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Good day forex trading koalas!
Today is mid week. Wednesday. SO ARE YOU GREEN OR NOT?
Remember our goal is to be green every week. Don’t care if it is even 1 pip. Just be green!
Yesterday saw Moody cutting Greece’s credit rating to junk. This was negative but the EUR/USD only took a minor hit. This indicated that the market might have lifted Greece off their radar screen for now unless anything adverse crops up. Spain is the main focus now. Furthermore, the strong economic data from the US continued to keep the sentiments positive. Foreign demand for US investments apparently increased, suggesting that the global economy is still at work. We noted that the technical line of 1.2330 is a historically strong line.
Looking at the EUR/USD chart above, the currency pair is recovering from a bearish momentum earlier.
The US equities index S&P 500 is holding at 1110+.
Oil is holding at around $76 too.
Gold remains elevated at $1234+. We need to pay close attention here as gold is normally an investment of choice when facing economic uncertainties.
There were speculations today that the IMF, EU and US Treasury are planning for a credit line of up to 250 billion Euros for Spain. However it was since denied “firmly” by the European Union. Spain has the third largest deficit in the Euro region and much must be done. A challenge will be objections by unions and indeed Spanish unions have called for a general strike to protest.
Over in the US, new building permits were disappointing as the new take ups are apparently cooling down after the expiration of the tax credit by the US government. This suggest that going forward, continued housing success may be a challenging task. As housing is a good stimulant for the economy, this may dampen growth prospects.
It was reported that Russia is considering to add Canadian and Australia dollars to it’s foreign reserves. This is probably a measure to reduce volatility. The question is which existing currency in Russia’s reserve will be sold and the impact of it.
From a technical point of view, the strong line of 1.2330+ remains to be conquered and if so, opens up 1.24/12440. Should the EUR/USD fail to achieve bullish momentum, a turn back to 1.23/122 may be possible.
Fed chairman Bernanke is due to speak later and hence do be careful of unexpected spikes. Tomorrow brings more important economic data such as a report from Euro’s ECB on the current and future economic conditions and the US unemployment claims.
I recently read a scientific report stating that the moon is actually wetter than it seems to be. Well it is definitely not in the form of liquid water, but rather inside the rocks and as solid ice. Do you think we will see humans living on the moon in ten years time?
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