Simultaneous Release at
Good day everyone.
I hope your weekend was a great one.
Last Friday ended on a bullish note. The MSCI world index of stocks rose for the ninth day. The decision by European leaders to publish stress test results on the European banks was well received as a sign of greater transparency. A report mentioned that the former Federal Reserve Chairman Greenspan warned about the US’s increasing debt and said that a “tectonic shift” in fiscal policy is needed to curb the debt.
Looking at the EUR/USD chart above, we had a forex gap over the weekend.
The S&P 500 equity index is now at 1126. It is enjoying bullish momentum.
Oil is up at $78. A break above $80 may indicate the global economy is picking up again. Oil can be a clue to the global economy’s health at times.
Gold is currently at $1255+.
Over the weekend, China brought some well received news. This was also kindly brought up by one of the TheGeekKnows.com Facebook page member over the weekend. See, belonging to a forex koala community can be a good thing! And yes, China said that it will relax the yuan’s fixed rate to the US dollar.
During the economy crisis, China adopted a peg of it’s currency to the US Dollar to protect it’s exporters. Many people believed that this is an unfair advantage and seek to end the peg. Therefore the news of this brought positivity across the markets. Risk aversion retreated and risk seekers are out. In fact the EUR/USD had a forex gap over the weekend. The MSCI world index continued it’s rally and commodities soared too.
Having said so, i will like to remind you that there is always two sides to a coin. A number of investors believe that this may just be mere talk to ease the pressure off its tail. With this announcement, work in progress is “seen”. After the initial knee jerk reaction, the market will be looking towards how China actually act on it’s announcement.
Among tomorrow’s data release brings us the German Ifo Business Climate and US Existing Home Sales. Both are important indicators of the economy and hence do pay close attention.
From a technical point of view, we can see the EUR/USD bouncing off the H4 trendline so far. Any bullish momentum will bring it to test 1.2440/ 1.2500. A failure of it may see 1.2330/1.2300.
I had such a busy day at my crazy work today. So busy that i did not have the time to be blue. Serious! More to come tomorrow and hence i am turning in early. I need too because i am falling sick.
Yes i am a weak koala Trade safely!!
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