Simultaneous Release at
Good day bluish forex traders!
Yes today is Monday blue day. BUT THAT IS NOT A REASON TO LOSE YOUR PIPS!
Over the weekend, i wrote a long review on how the market seems to punish the weaker economy now rather than rewarding the better one. This makes trading rather tricky as any activity involving emotions is always complicated.
With my main chart back, it is time for me to shamelessly boast again! I love it when my chart works. Look at how the EUR/USD reacted with the 1.2880 support.
The S&P 500 is slightly recovered from Friday’s sell off and is now around 1070+.
Oil is slightly higher at $77+.
Gold is at $1180+.
I read a number of reports today and most are bashing the US economy. This suggests that something which i warned of for a long time may be happening. The market seems to be taking notice of the deeply but not so apparent troubled US economy. With the end of the housing tax credits and the temporary job hires, it is getting more obvious how fragile the recovery of the US economy is.
It was reported that the Hungarian Prime Minster plans were declined by the EU and IMF due to a lack of concrete cut in spending. Furthermore, Ireland’s credit rating was cut one level by Moody’s. Investors are also worried that the strengthening Euro may affect the export performance of the Euro countries.
Despite the above, the Euro did not suffer a major sell off. We must not jump to conclusions and believe that there is no risk aversion. Rather we must consider the possibility that traders may be risk averse to the US instead.
Among tomorrow’s data releases comes the German PPI and US Building permits. Pay close attention to how the market reacts.
A clean break of 1.3 may see 1.3090/1.32 while a rejection may see a test of 1.2950/1.2880.
First day of my crazy work after a break and my eyes are screaming from too much PC work again. I guess you koalas need to tolerate my grumblings again ! HEEHEE
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