Simultaneous Release at
Good day forex trading koalas.
In the previous review we noted that the string of recent positive economic data from the US probably brought optimism towards the US economy to the market. S&P 500 is doing good. Currencies however still display patterns indicative of low liquidity.
Looking at the EUR/USD chart above, 1.34 is being tested for the moment as the currency pair attempts to steer clear of it. If the EURUSD continues to be bullish, we may see a test on 1.3450+.
With the rest of the Euro Zone back in action today, liquidity is probably picking up. Earlier today, the German Unemployment Change performed worst than expected. 3000 unemployed folks were added to the existing pool.
It was also reported that Spain is planning for a new round of stress tests and assistance from the state rescue fund will be limited. Stress tests always present the risk of opening a can of worms and hence we need to monitor developments carefully.
Despite the above, the EUR/USD has been bullish so far and it may be due to the report that China is confident in the European financial market and that China supports the Spanish economic reforms. Spanish government debts will still be bought by China. Being a major economic power, China’s support for the region is probably seen as a stability factor.
The US FOMC Meeting Minutes will be out later and investors will be paying close attention for clues to future policy directions. Tomorrow brings us more economic data including the US ADP Non-Farm Employment Change which is often used as a clue for the US Non-Farm Payroll.
Related Forex Articles from the Koala Forex Training College.
Read more Forex Articles and Views by The Koala at
©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.