Simultaneous Release at www.thegeekknows.com
Today is a US day.
Spotting an impressive lineup of good economic releases that Uncle Sam will be proud of!
The EUR/USD almost touches the strong line of 1.3800 and bounces off towards the lower end of the range at 1.3600.
With the latest push, the S&P 500 hits the 1100 mark. This is crucial. Should the S&P 500 maintain a foothold above 1100, this suggests that the recovery of the recent dip is well underway.
Oil trades at around $75 currently, boosted by increased demand and tensions over Iran. As oil can be a clue to the global economy’s health, i am watching for a test of $80. Should it goes above it and maintains, we may be entering a new phrase of economic recovery.
Gold values at around $1115+.
The US had a wonderful day. Releases such as US Building Permits and Housing Starts are right on track. As home sales can be a stimulant to the economy, investors may see this as a sign of good things to come. Industrial Production performed better than expected too, suggesting improving economic conditions.
Probably due to the above, the S&P 500 gets lifted up and the US Dollar is in demand!
Having said so, once again i hate to rain on your parade but remember that sentiments are fickle and can change faster than you can say “Koala” Unemployment remains a problem in the US and recent reports indicate that UK Unemployment Claims had jumped to the highest since 1997. While this may not be related to the Euro directly, let us not forget that the global economy is connected.
An interesting fact is that China seems to be slowly distancing itself from the US treasuries. Once the top holder of such, it is now second to Japan. With decreasing demand, the US government may find it more challenging to fund it’s huge deficit. This may be a possible issue in the future and you heard it here first at TheGeekKnows.com koalas
While there are a few US releases tomorrow, the majority belongs to the Euro Zone. A collective sign of growth or decline may spur the EUR/USD on and hence be on the lookout for those Euro releases.
Bullish relief may target 1.3680/740.
Further bearish attacks may see us chipping away at 1.3600 again. If it fails, 1.3550 may be next.
Mario came and cost me $100! I will never be lazy and throw wiping tissues into the bowl again. These wiping tissues seem to be coated with some “sure choke” formula .. arrgghhh
Did you choke your toilet bowl before? Tell me more about it.. muahaahahaha.
Trade safely and practice proper money management.
Read more Forex Articles and Views by The Koala at www.thegeekknows.com