Simultaneous Release at www.thegeekknows.com
Good day to you koalas!
It is mid week and how is your trading so far?
Remember to be in the Green is the name of the game
Yesterday brought us a bullish day as stable economic data releases coaxed the bulls out of their barns. Optimism of a solution for the Greek deficit crisis also kept sentiments high.
Let us take a look at how the EUR/USD is holding up today.
After testing and edging above 1.38, the currency pair retreats to test the support of 1.3740.
The S&P 500 remains the winner for now. Going beyond the previous high, folks want to believe in the American Dream!
Oil is currently trading around $80. As i always look towards oil as a indicator for the global economy’s health, i am monitoring for more developments to determine if a strong recovery is under way.
Gold remains around $1120+. The low volatility indeed suggests that gold may be an investment of choice when it comes to uncertainty.
Investors are apparently happy with the continuance of the near zero US Federal Funds Rate. With the low accommodating rates, the economic recovery may be nudged to pick up momentum as businesses thrive with the access to “easy credit.” Do note however that while such a policy may do good for now, the long term implications may be a much weaken currency.
Standard & Poor’s said yesterday that it is not reviewing the nation’s BBB+ rating for a downgrade due to the Greek government’s efforts to narrow the budget deficit. This came as a relief to most and probably contributed to the risk taking appetite.
Having said so, it was reported that the Greek Prime Minister had vowed to meet the EU’s 3 percent limit on budget gap in 2012 from the current 12.7. This remains to be seen as current implications such as strikes are hindering progress.
The US Producer Price Index (PPI) came out a few hours ago and was worst than expected. We may see a slight bearish hit from here and hence do be on a lookout for unexpected developments.
Fed Chairman Bernanke is due to testify later. As investors will be paying close attention to his speech for clues to future policies, tighten up your seat belts and plan your trades well.
Numerous important releases will be due tomorrow, including the US Consumer Price Index and US Unemployment Claims. These are crucial economic indicators and hence be on a lookout for risk aversion should the releases come out worst than expected.
Bullish pressure may test 1.3800/80.
Bearish momentum may hit 1.3680/00.
I am happy The facebook section seems to be getting better. Lots of interactions and help rendered by fellow koalas!! Nothing beats having a tree full of helpful koalas. Remember we are in this together. To learn and prevent the horrors of margin calls.
Read more Forex Articles and Views by The Koala at www.thegeekknows.com