Simultaneous Release at
Good day forex koalas !!
Today is CASH YOUR PIPS FOR BEER DAY! Yes. This means that you must be green with profit. Definitely not cry for your margin account day NO NO NO
We noted in the previous review that the Bank of Spain will be releasing the results of the stress tests on banks. This seems to have a double effect because while investors welcome the transparency, many investors also felt concerned as this may lead to more bad data. Over in the US, a worst than expected manufacturing index result together with increased unemployment claims brought a sharp reminder that the US recovery is fragile.
Looking at the EUR/USD chart above, the currency pair remains bullish.
S&P 500 is holding at around 1116. Extreme negativity seems to be gone.
Oil is also around $76, indicating stability for now.
Gold is currently at $1257+. Close monitoring should be done here as an excessive build up may indicate risk aversion since gold is often an investment of choice when it comes to uncertainty.
Today the financial world is probably happy. The MSCI world index of stocks rose for the ninth day. This indicates general positivity and is the longest streak of rallies in 11 months. Investors were also satisfied when European officials decided to publish stress tests to increase transparency.
It was reported that the former Federal Reserve Chairman Greenspan warned on the US’s increasing debt and said that a “tectonic shift” in fiscal policy is needed to curb the debt. The idea that the US has a large borrowing capacity is misleading. The upside lift in the US is partly caused by the crisis in the Euro Zone and this is only temporary. In the latest US Dollar index review, i examined the amount of US public debt and indeed it is a huge amount.
As we prepare for the close of the trading week, bullish momentum may see 1.24. A bearish comeback may see 1.233/1.23.
Finally it is time for the weekend. Next week brings a new chapter in my crazy work and it is exciting and well crazy LOL. How is the world cup for you so far? The koala team is not doing too well. ARGGGHH. Are you having late nights because of the matches?
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