EUR/USD Daily Review 18 Feb 10

 @ibtimes on February 18 2010 11:12 AM

Simultaneous Release at www.thegeekknows.com

Greece may be running out of time!

Good day koalas!

Moments ago, the EUR/USD shot up like a rocket!

Having tested the 1.3550 region again, it is simply not ready to go further down.

The S&P 500 continues a party of its own, pushing on above 1100. I previously said that should the S&P 500 manage to remain above 1100, we may be in a new phrase of economic recovery. Let us stay tuned to see where it ends up when the week closes.

Oil continues its upside momentum and is currently trading at $76+. A hold above $80 may indicate a improving global economy since oil can be a clue to the global economy’s health.

Gold is trading at $1118+. I will be monitoring to see if the increase in value is due to demand. Should it be so, it may indicate apprehensive since gold is a common investment during risk aversion.

***

The US brought us pretty good economic data today. Reports indicate that U.S. leading indicators rose in January for a 10th straight month, suggesting that the economy may continue to expand through the first half of the year. An exception though was the US Unemployment Claims which was worst than expected. As i mentioned previously, the US unemployment problem is critical and a solution may not be readily available. This will probably continue to drag the US economy like an anchor.

Over across the Atlantic, the Euro Zone continues on with the Greek deficit crisis. Greece’s budget deficit is now more than four times the Euro limit and reports state that she will need to raise 53 billion euros this year. Concrete actions must be taken to reduce the deficit and an upcoming bond redemption of about 16 billion euros by May complicates matters. Let us not forget that Britain is facing the highest unemployment claims in more than ten years. Employment in Portugal is suffering too with the unemployment rate hitting above 10 percent.

There is probably no bed of roses to be found on either side of the Atlantic and it may all comes down now to simply whose worst off as far as the EUR/USD is concerned.

Do monitor the developments and sentiments carefully and i probably won’t be too eager to jump on any train north without careful considerations.

A collection of numerous releases tomorrow for both sides and hence do be careful.

Bullish pressure may push this pair back to 1.3680/740.

Bearish continuation may test 1.3600 again followed by 1.3550.

***

My eyes… they are burning !!! Once again, an over dose of research, article reading and chart scanning has taken it’s toil. I am having trouble even reading my typing. You folks experienced this before? Is my super HD monitor too bright? lol

Trade safely!

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