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The market sentiment seems to flip flop back and forth on a daily basis between a “Risk On” and a “Risk Off”. Reading Risk Sentiment is as simple as following the direction of the US Stock Market. Each day, it seems a new rumor is produced and the stock markets shifts accordingly. The seesaw [...]
Talks between French and German leaders have led to a wave of parliamentary action across the Euro-zone’s members to expand the European Financial Stability Facility (EFSF). The EFSF has been compared to the United States’ Troubled Asset Relief Program, as one of the last remaining hopes to keeping the Euro-zone, and thus the Euro, intact. [...]
European Session Summary Despite a weekend marked by substantive negative news and speculative positive developments, market participants regained confidence and bid higher yielding assets higher ahead of trading in New York. Franco-Belgian bank Dexia approved a rescue plan set forth by the governments of Belgium, France and Luxembourg. The nationalization occurs after the bank’s short-term [...]
Gold and silver changed direction again and slightly slipped on the last day of last week, after the U.S. non-farm employment report showed an increase of 103k in employment during September. Currently, gold and silver are traded up. The speculation around the European debt crisis continues to be high with an update of the recent [...]
EUR/USD: Setbacks have stalled out for now by 1.3145 with the market in search of a fresh lower ahead of the next major downside extension below 1.3000. Overall, our outlook remains quite bearish and we continue to project deeper setbacks into the lower 1.2000’s over the coming weeks. Ultimately, only a daily close back above 1.3690 [...]
USD/JPY:Has been locked in an intense consolidation in the 76.00’s over the past several weeks, since breaking to fresh record lows by 75.95, and while we would not rule out the possibility for a continuation of the downtrend, any additional declines are seen as limited. Longer-term technical studies are looking stretched and we anticipate the formation of [...]
Euro dollar is slowly testing lower ground below critical support and under the former uptrend line. The euphoria from the joint announcement by 5 central banks to provide dollar liquidity to struggling European banks is slowly fading. The week ends with two major US releases and also the finance ministers meeting. How close is the [...]
EUR/USD broke above the uptrend channel that characterized it throughout the week and above critical resistance at 1.3838. This comes after 5 central banks coordinated to supply dollar liquidity to European banks – the Federal Reserve is helping the ECB. The ECB and the Federal Reserve address the dollar funding crisis that has weighed heavily [...]
Euro/dollar is getting away from uptrend resistance as US CPI surprises with a rise of 0.4%, higher than +0.2% that was expected. Core CPI rose by 0.2% as expected. Persistent inflation lowers the chance of QE3. On the downside, weekly jobless claims unexpecdely rose to 428K. A figure of 410K was expected. It’s important to [...]
EUR/USD is now moving deeper into the channel and below one more support line as the next tranche of Greek aid is still in the air. According to the leaders of the EU, the conditions for the 8 billion euro tranche have not been fulfilled yet. But perhaps this isn’t the Greeks this time -it [...]