Simultaneous Release at
Good day forex trading koalas.
Yesterday we noted that China said that it will relax the yuan’s fixed rate to the US dollar. This was generally welcomed and resulted in a bullish rally. Having said so, a number of investors believe that this may be just to take the heat off the mounting pressure on it’s monetary policy.
Looking at the EUR/USD chart above, the pair has slipped below 1.2330 and the line is acting as a resistance for now.
S&P 500 took a hit and is now at 1112+.
Oil is around $77+.
Gold is at $1239+, pressured by the stronger US Dollar.
I mentioned about the importance of the German Ifo Business Climate and the US Existing Home Sales. These two performed worst than expected.
With the Euro deficit crisis far from over, sentiments remained depressed. Germany, France and UK were reported to be jointly pushing for an implementation of levies on banks’ balance sheets so as to ensure a fair contribution by banks to reflect the risk they pose to the economy. On a wider basis across the G20 however this proposal has not taken flight yet and hence sentiments remained unimpressed.
With regards to the US, although the Treasury Secretary said that the credit market is getting better, the poor existing home sales caused concern and risk aversion was seen. As the effect of the tax credit expiration comes in, investors fear for the worst.
There are a number of data streaming from the Euro Zone tomorrow hence be on the lookout. US will be releasing data too, including the New Home Sales.
If bullish momentum breaks 1.2330, we may see 1.24/1.2440 again. A bearish assault may see 1.22.
Apologies for the short update. I had 15 hours of crazy work today and i only have 6 hours of sleep left as of NOW!
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