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Good day to all.
Yesterday saw the EUR/USD crashing through the support lines.
Reports stated that Portugal’s debt was downgraded by Fitch Ratings. This had wide sweeping impact on the markets as investors are worried of a breakdown of the Euro.
Furthermore, the US Home Sales are falling, dragged down by the unemployment problem.
Let us now take a look at how the currency pair is doing.
Touching the line of 1.3285 and hence triggering a I LOVE IT WHEN MY CHART WORKS moment, the currency pair had since then eased off and is turning bullish for the day.
The S&P 500 continues on it’s bullish path, suggesting positive sentiments for the US.
Oil is currently around $79+.
Despite a stronger US Dollar, gold is bullish at $1092+. As gold may be an investment of choice when it comes to uncertainly, risk aversion may be strong.
Its been reported that the Euro Zone may settle for a mix of IMF and Euro Zone aid for Greece. While this brought some relief to investors, another group of them fear of potential complications.
While officials spoke of confidence in Greece and it’s deficit cutting measures, we must remember that the road to recovery is far from smooth sailing. The danger of strikes crippling the Greece economy must not be ignored.
The ECB president extended emergency lending rules today. This is a relief for Greece as it will ensure that its bonds won’t be cut off from ECB’s refinancing operations next year in the event of Moody’s Investors Service lowering its rating to a level comparable to companies.
The problem remains that if IMF aid is given, the Euro may not look good as investors may conclude that the Euro Zone cannot solve their own problems.
In the US today, sentiments are positive. The unemployment claims came out better than expected. As investors are very concerned with regards to the US Unemployment Crisis, any positive developments will be most welcome.
Folks, i urge you to be prudent. Plan your trades well and have proper money management. We have many economic releases due tomorrow. The main highlight the EU Economic Summit, will be closely monitored for clues to the economic policies and developments of the European Union. Watch out for unexpected spikes.
Bullish action may test 1.3360/1.3400.
Bearish return may target a retest of 1.3285.
Tomorrow is Fridayyyyyyyyyyyyy! After which, the weekend! I am so looking forward to resting and reading up on economic articles. Hoping the new DLC for L4D2 will be released too.
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