Simultaneous Release at www.thegeekknows.com
Good day koalas.
Today is Monday and you won’t see it again for the next 6 days yay! LOL
Trading is light today with the absence of major releases. The EUR/USD was bounded in a 50 pips range for most of the day.
The S&P 500 begins the day weak. Nonetheless, we remained above 1100 and this is an indication of optimism.
Oil is currently trading at $77+.
Gold is valued at $1114+ at the moment.
With the low volume of trading, the commodities are not receiving much action too.
Although there are no major releases today, i did come across a few reports that i will like to touch on.
Firstly, derivative traders may be signaling that the Euro’s dip to a nine-month low will continue even if Greece receives a bail out. Investors are speculating that the ECB may continue to maintain low interest rates in a bid to urge on the recovery despite the measures taken by debt laden countries which may affect growth. In a report, a comment was made that investors seem to be find all sorts of reasons to sell the Euro. It was noted that aggressive measures to lessen the deficit by Greece, Spain and Portugal are likely to drop their economies back into recession. As i mentioned before, this deficit problem will require more than a simple fix.
Despite the Greek central bank Governor’s comment that he’s confident the Greek government will meet its deficit cutting goals and prevent any further credit rating downgrades, investors remain skeptical and awaits concrete actions and results.
Over at the US side, i know everyone is probably partying with regards to the recent apparent good progress of recovery. I hate to rain on your parade but trust the old geeky koala to remain objective! We must remember that even when we see a possible growth these days, these percentage are based on dismay figures complimentary of the crisis. Simply put, a 1% increase of 10 versus a 1% increase of 100 gives a big difference! Be on a look out should any stall on the road to recovery triggers risk aversion!
We have a few releases from both sides of the Atlantic tomorrow including the German Ifo Business Climate and US CB Consumer Confidence. Do be careful of unexpected spikes. Plan your trades well.
Bullish pressure may test 1.3680/740.
Return of the bears may push us to 1.3550/1.3455.
I spent too much time reading the articles and scanning my white charts again! At this rate, i may need to grab one of those eye wears of cyclops from x-men. However i can’t stop as i simply love reading up on forex articles, observing the charts and writing this humble koala blog of my. Well, i need to go rest my eyes now.
Read more Forex Articles and Views by The Koala at www.thegeekknows.com