EU Morning Report – Uncertainty lingers in the markets

Posted by on May 20, 2012 0 comments

The Euro (EUR) commenced the week with noticeable selling pressure following a weekend, where Greek politicians failed to form a government and uncertainty heightens. The nation’s President – mostly a ceremonial position – Papoulias, is now holding a series of talks among party leaders, aiming to form a unity government. Market analysts do not expect any breakthrough whatsoever and this will lead Greece to new election in a month’s time. The Swiss Producer Import Price figures will be released at 07:15 GMT, as the euro against the Swiss Franc (CHF) remains in a narrow band just above the 1.20 floor. The Swiss National Bank (SNB) Chairman is due to speak at 15:45 GMT and investors are expected to closely monitor his remarks.

The US dollar (USD) appears strong as markets open following the weekend break, with no economic data release expected today. The Australian Dollar (AUD) remains in a strong downtrend but a catalyst is needed to record fresh lows against the greenback. China cut its reserve requirement ratio (RRR) for the 3rd time in 6 months showing clear intention by the government to avoid a slowdown. The cut, effective from May 18, is expected to influence the already strong trading ties between Australia and China

Oil opened at 94.89 dollars a barrel from 95.50. Gold (XAU) opened at 1579.08 US dollars an ounce from 1579.05. Against the euro, gold rose to 1222.66 from 1232.24 an ounce. Silver (XAG) opened at 28.8915 dollars an ounce from 28.8921.

Outlook . Pivot Preference1 Sentiment2
. EURUSD 1.2925 SHORT @ 1.2925 68% of deals buy EUR
. USDJPY 79.70 LONG @ 79.70 84% of deals buy USD
. GBPUSD 1.6110 SHORT @ 1.6100 53% of deals buy GBP
. AUDUSD 1.0075 SHORT @ 1.0075 79% of deals buy AUD
. GOLD 1590 SHORT @ 1590 82% of deals buy GOLD
. OIL 95.10 LONG @ 95.10 88% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™
.

Calendar Currency Time (GMT) Event Forecast
. AUD 03:30 Home Loans in March -2.0%
. CHF 07:15 Producer Import Price m/m for April 0.4%
. EUR 09:00 Industrial Productions m/m for March 0.4%

.

Movers Shakers
USDZAR The US dollar (USD) produced a spectacular rise against the South African rand (ZAR) over the past week, even breaking though the 8.0525 resistance. The pair then appreciated by 268 pips, a weekly return of 3.4%. Friday’s close was at 8.0970 and it will be interesting to see whether USDZAR will produce higher highs.

.
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by Easy Forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on Easy Forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

EU Morning Report – Gold records 5-month low

Posted by on May 20, 2012 0 comments

The Euro (EUR) recorded losses against most of its major counterparts as the never ending political crisis in Greece drags the single currency lower. Greek President Papoulias proposed a government of technocrats in a bid to overcome differences among party leaders. SYRIZA, a left-wing party that wants to renegotiate the bailout terms, rejected this. Even though there is going to be a fresh round of talks today, any breakthrough is unlikely. Against the Brittish pound, the single currency produced a dive at 0.7969 – a 52-month record low – from 0.8023.

The US dollar (USD) appeared strong versus a basket of currencies on a lackluster financial calendar day. The ongoing uncertainty, heightened risk aversion and favored risk haven buying of the greenback. Against the Canadian dollar (CAD), the US dollar climbed to 1.0023 from 1.0006. Versus the Swiss Franc (CHF), the greenback rose to 0.9361 from 0.9313, breaking through the 0.9330 resistance area.

The Australian Dollar (AUD) dropped below parity against the US dollar for the first time this year, opening at 1.0018 and closing at 0.9971. This happened even as the China cut its required reserve ratio by 50 basis point – the third cut in six months – in an effort to avoid an economic slowdown.

Oil prices plunged to 93.94 from 95.15 dollars a barrel. Gold (XAU) dropped to 1558.35 from 1580.62 US dollars an ounce, below 1568.30 – its opening price for the year. Against the euro, gold plummeted to 1214.11 from 1229.07 euro an ounce. Silver (XAG) moved down to 28.2039 from 28.7981 dollars an ounce.

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2880 SHORT @ 1.2870 37% of deals buy EUR
USDJPY 79.95 SHORT @ 79.95 97% of deals buy USD
GBPUSD 1.6080 LONG @ 1.6085 33% of deals buy GBP
AUDUSD 0.9950 LONG @ 0.9950 38% of deals buy AUD
GOLD 1577 SHORT @ 1577 66% of deals buy GOLD
OIL 95.10 SHORT @ 95.10 51% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
EUR 08:30 Trade Balance in March -8.4 bil
GBP 09:00 1st quarter flash GDP q/q -0.2%
USD 12:30 Retail Sales in April 0.2%
Equities EUROPE US ASIA3
FTSE 100 -1.97% S&P 500 -1.11% NIKKEI -1.01%
DAX -1.94% DJIA -0.98% HIS 0.12%
CAC -2.29% NASDAQ -1.06% CSI 300 -0.59%

3 at the time of writing
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by Easy Forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on Easy Forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

EU Morning Report – USD slaughters euro and commodities

Posted by on May 20, 2012 0 comments

The Euro (EUR) recorded losses against most of its major counterparts as the news from Greece heightened risk aversion. The final round of talks on forming a coalition government yesterday produced no breakthrough. The debt-ridden nation will now proceed with new elections in June. As the ongoing drama unfolds, fear and uncertainty concerning the eurozone future of Greece take over. There were reports that on Monday, 700 million EUR where withdrawn from Greek banks. Against the US dollar, the single currency dived to 1.2734 – a 5-month low – from 1.2830. European Central Bank (ECB) President Draghi is due to deliver a speech on “Monetary Policy in Unconventional Times”, a rather interest topic that is expected to capture the attention of investors worldwide.

The US dollar (USD) appeared strong versus a basket of currencies as Retail Sales grew at a slower pace and Business Inventories decreased in April. The seemingly constant threat of Greek leaving the eurozone and its potential domino impact, heightened risk aversion and favored risk haven buying of the greenback for yet another day. Against the Canadian dollar (CAD), the US dollar rose to 1.0070 from 1.0022. Versus the Swiss Franc (CHF), the greenback surged to 0.9431 from 0.9360. Market participants are expected to tune in on the Federal Open Market Committee (FOMC) Minutes release due at 18:00 GMT, later today.

Oil prices dropped to 92.97 – a level last seen in December 2011 – from 93.93 dollars a barrel. Gold (XAU) plunged to 1543.00 – a fresh 5-month low – from 1558.34 US dollars an ounce. Against the euro, gold dived to 1213.08 from 1214.04 euro an ounce. Silver (XAG) moved down to a new low at 27.6497 from 28.2059 dollars an ounce.

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2810 SHORT @ 1.2810 64% of deals buy EUR
USDJPY 80.10 LONG @ 80.10 80% of deals buy USD
GBPUSD 1.6050 SHORT @ 1.6050 63% of deals buy GBP
AUDUSD 0.9950 SHORT @ 0.9950 80% of deals buy AUD
GOLD 1552 SHORT @ 1552 77% of deals buy GOLD
OIL 93.40 SHORT @ 93.40 87% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
GBP 08:30 Claimant Count in April 5k
EUR 09:00 Consumer Price Index (CPI) Final m/m in April 0.5%
USD 12:30 House Starts in April 0.68 mil
Equities EUROPE US ASIA3
FTSE 100 -0.51% S&P 500 -0.57% NIKKEI -1.31%
DAX -0.79% DJIA -0.50% HIS -2.70%
CAC -0.61% NASDAQ -0.30% CSI 300 -0.82%

3 at the time of writing
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by Easy Forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on Easy Forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

EU Morning Report- Greece fears pressure, BoE cuts growth forecast

Posted by on May 20, 2012 0 comments

The euro (EUR) recovered a little yesterday against the dollar edging higher to 1.2758 from 1.2681 as risk sentiment in the market improved slightly. Investors remain worried about Greece’s ability to avoid bankruptcy and stay in the euro ahead of Greece’s second election. Greece put a senior judge Panagiotis Pikramenos to be the leader of the Greek caretaker government until election on June 17. The single currency may remain under pressure on fears that a Greek exit from the euro may have a serious impact on countries such as Spain, Italy and Portugal. Some Greek banks were moved to an emergency funding assistance program due to the deteriorating quality of their capital.

The US dollar (USD) strengthened against a basket of currencies yesterday as risk aversion dominated the markets. Against the safe haven Japanese Yen (JPY) the greenback rose to a two week high at 80.54 from 80.29 but later surrendered some of its gains following the FOMC minutes. Minutes from the last Federal Reserve policy meeting showed that some policymakers believe that further easing may be necessary in order to support the ailing economy. Policymakers are also worried over the stubbornly high unemployment as well as inflation. Economic figures showed that the Japanese economy grew more than expected in the first quarter where Gross Domestic Product showed a 1% compared to a previous -0.2%. Focus is now on the US Manufacturing Index as well as Initial Jobless Claims figures.

The British Pound (GBP) plummeted yesterday against the dollar to 1.5888 from 1.5987 after Bank of England inflation report was released yesterday. BoE’s growth forecast was lower expecting a 0.8% economic growth in 2012 while inflation is expected to remain above the central bank’s 2% target for another year. BoE Governor Mervyn King warned that the eurozone debt crisis is the greatest threat to the UK economy.

Oil fell to a six and a half month low at 91.79 dollars a barrel but later rebounded to trade at 94.14. Gold (XAU) edged higher to 1553.70 dollars an ounce from 1526.80 and against the euro it edged lower to 1210.85 euro an ounce from 1212.99. Silver (XAG) dropped to a four and a half month low at 26.72 dollars an ounce from 27.96. Stay in tune throughout the day with !

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2760 SHORT @ 1.2760 57% of deals buy EUR
USDJPY 80.10 LONG @ 80.10 83% of deals buy USD
GBPUSD 1.5975 LONG @ 1.5975 66% of deals buy GBP
AUDUSD 0.9900 LONG @ 0.9900 75% of deals buy AUD
GOLD 1550.00 SHORT @ 1550.00 68% of deals buy GOLD
OIL 94.25 SHORT @ 94.25 63% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
USD 12:30 Initial Jobless Claims 365K
USD 14:00 Fed Manufacturing Index 10.0
Equities EUROPE US ASIA3
FTSE 100 -0.60% ▼ S&P 500 -0.44% ▼ NIKKEI 0.75%
DAX -0.26% ▼ DJIA -0.26% ▼ HIS 0.92%
CAC 0.31% NASDAQ -0.68% ▼ CSI 300 1.14%

3 at the time of writing

Please note that forex trading (OTC trading) involves substantial risk of loss, and may not be suitable for everyone. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on easy-forex. This is not an advertisement or a recommendation by easy-forex in engaging / binding you in any forex transactions.

EU Morning Report- Greek and Spanish woes weigh on the euro

Posted by on May 20, 2012 0 comments

The euro (EUR) plummeted against the dollar sliding to a four-month low at 1.2655 from 1.2748 as risk aversion dominates the markets. World equities tumbled as investors fear that Greece may leave the euro after the second election in the country in June. Poor economic data from the US and concerns about the growing instability among Spanish banks further weighed on the single currency. Credit rating agency Moody’s downgraded 16 Spanish banks while shares in Bankia, the state-rescued lender plunged on news that clients have withdrawn 1 billion in the past week. Fitch downgraded Greece’s rating from BI to CCC, the lowest possible grade for a country not in default, citing the heightened risk that the country may leave the eurozone.

The US dollar (USD) strengthened against a basket of currencies yesterday sentiment in the market was further hurt by weaker than expected economic figures from the US. Against the safe haven Japanese Yen (JPY) the greenback dropped to a three-month low at 79.13 from 80.37 after the US Philadelphia Fed Manufacturing Index surprised the markets by showing a disappointing figure of -5.8 while 10 was expected. The negative reading signals an economic contraction adding further on the Federal Reserve’s concerns about the pace of the US economic recovery. Japan’s Finance Minister Jun Azumi said that the Bank of Japan is ready to intervene in order to stop the yen from rising further.

The British Pound (GBP) continues to decline against the dollar falling to 1.5732 from 1.5920 following the Bank of England inflation report released on Wednesday. The report left the possibility open for another round of quantitative easing while emphasizing on the increasing risk the UK economy faces by the eurozone deepening debt crisis.

Oil fell to 91.60 dollars a barrel from 93.86. Gold (XAU) edged higher to 1579.78 dollars an ounce from 1542.55 and against the euro it edged higher to 1239.69 euro an ounce from 1210.86. Silver (XAG) advanced to 28.30 dollars an ounce from 27.40. Stay in tune throughout the day with !

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2730 SHORT @ 1.2730 65% of deals buy EUR
USDJPY 79.70 SHORT @ 79.70 78% of deals buy USD
GBPUSD 1.58535 SHORT @ 1.5835 70% of deals buy GBP
AUDUSD 0.9895 SHORT  @ 0.9895 80% of deals buy AUD
GOLD 1558.00 LONG @ 1558.00 68% of deals buy GOLD
OIL 92.90 SHORT @ 92.90 84% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
CAD 12:30 Consumer Price Index 0.3%
Equities EUROPE US ASIA3
FTSE 100 -1.24% S&P 500 -1.51% NIKKEI 1.90%
DAX -1.18% DJIA 2.31% HIS 4.17%
CAC -1.20% NASDAQ 1.49% CSI 300 2.46%

3 at the time of writing

Please note that forex trading (OTC trading) involves substantial risk of loss, and may not be suitable for everyone. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on easy-forex. This is not an advertisement or a recommendation by easy-forex in engaging / binding you in any forex transactions.

EU Morning Report – Uncertainty lingers in the markets

Posted by on May 20, 2012 0 comments

The Euro (EUR) commenced the week with noticeable selling pressure following a weekend, where Greek politicians failed to form a government and uncertainty heightens. The nation’s President – mostly a ceremonial position – Papoulias, is now holding a series of talks among party leaders, aiming to form a unity government. Market analysts do not expect any breakthrough whatsoever and this will lead Greece to new election in a month’s time. The Swiss Producer Import Price figures will be released at 07:15 GMT, as the euro against the Swiss Franc (CHF) remains in a narrow band just above the 1.20 floor. The Swiss National Bank (SNB) Chairman is due to speak at 15:45 GMT and investors are expected to closely monitor his remarks.

The US dollar (USD) appears strong as markets open following the weekend break, with no economic data release expected today. The Australian Dollar (AUD) remains in a strong downtrend but a catalyst is needed to record fresh lows against the greenback. China cut its reserve requirement ratio (RRR) for the 3rd time in 6 months showing clear intention by the government to avoid a slowdown. The cut, effective from May 18, is expected to influence the already strong trading ties between Australia and China

Oil opened at 94.89 dollars a barrel from 95.50. Gold (XAU) opened at 1579.08 US dollars an ounce from 1579.05. Against the euro, gold rose to 1222.66 from 1232.24 an ounce. Silver (XAG) opened at 28.8915 dollars an ounce from 28.8921.

Outlook . Pivot Preference1 Sentiment2
. EURUSD 1.2925 SHORT @ 1.2925 68% of deals buy EUR
. USDJPY 79.70 LONG @ 79.70 84% of deals buy USD
. GBPUSD 1.6110 SHORT @ 1.6100 53% of deals buy GBP
. AUDUSD 1.0075 SHORT @ 1.0075 79% of deals buy AUD
. GOLD 1590 SHORT @ 1590 82% of deals buy GOLD
. OIL 95.10 LONG @ 95.10 88% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™
.

Calendar Currency Time (GMT) Event Forecast
. AUD 03:30 Home Loans in March -2.0%
. CHF 07:15 Producer Import Price m/m for April 0.4%
. EUR 09:00 Industrial Productions m/m for March 0.4%

.

Movers Shakers
USDZAR The US dollar (USD) produced a spectacular rise against the South African rand (ZAR) over the past week, even breaking though the 8.0525 resistance. The pair then appreciated by 268 pips, a weekly return of 3.4%. Friday’s close was at 8.0970 and it will be interesting to see whether USDZAR will produce higher highs.

.
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by Easy Forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on Easy Forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

EU Morning Report – Gold records 5-month low

Posted by on May 20, 2012 0 comments

The Euro (EUR) recorded losses against most of its major counterparts as the never ending political crisis in Greece drags the single currency lower. Greek President Papoulias proposed a government of technocrats in a bid to overcome differences among party leaders. SYRIZA, a left-wing party that wants to renegotiate the bailout terms, rejected this. Even though there is going to be a fresh round of talks today, any breakthrough is unlikely. Against the Brittish pound, the single currency produced a dive at 0.7969 – a 52-month record low – from 0.8023.

The US dollar (USD) appeared strong versus a basket of currencies on a lackluster financial calendar day. The ongoing uncertainty, heightened risk aversion and favored risk haven buying of the greenback. Against the Canadian dollar (CAD), the US dollar climbed to 1.0023 from 1.0006. Versus the Swiss Franc (CHF), the greenback rose to 0.9361 from 0.9313, breaking through the 0.9330 resistance area.

The Australian Dollar (AUD) dropped below parity against the US dollar for the first time this year, opening at 1.0018 and closing at 0.9971. This happened even as the China cut its required reserve ratio by 50 basis point – the third cut in six months – in an effort to avoid an economic slowdown.

Oil prices plunged to 93.94 from 95.15 dollars a barrel. Gold (XAU) dropped to 1558.35 from 1580.62 US dollars an ounce, below 1568.30 – its opening price for the year. Against the euro, gold plummeted to 1214.11 from 1229.07 euro an ounce. Silver (XAG) moved down to 28.2039 from 28.7981 dollars an ounce.

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2880 SHORT @ 1.2870 37% of deals buy EUR
USDJPY 79.95 SHORT @ 79.95 97% of deals buy USD
GBPUSD 1.6080 LONG @ 1.6085 33% of deals buy GBP
AUDUSD 0.9950 LONG @ 0.9950 38% of deals buy AUD
GOLD 1577 SHORT @ 1577 66% of deals buy GOLD
OIL 95.10 SHORT @ 95.10 51% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
EUR 08:30 Trade Balance in March -8.4 bil
GBP 09:00 1st quarter flash GDP q/q -0.2%
USD 12:30 Retail Sales in April 0.2%
Equities EUROPE US ASIA3
FTSE 100 -1.97% S&P 500 -1.11% NIKKEI -1.01%
DAX -1.94% DJIA -0.98% HIS 0.12%
CAC -2.29% NASDAQ -1.06% CSI 300 -0.59%

3 at the time of writing
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by Easy Forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on Easy Forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

EU Morning Report – USD slaughters euro and commodities

Posted by on May 20, 2012 0 comments

The Euro (EUR) recorded losses against most of its major counterparts as the news from Greece heightened risk aversion. The final round of talks on forming a coalition government yesterday produced no breakthrough. The debt-ridden nation will now proceed with new elections in June. As the ongoing drama unfolds, fear and uncertainty concerning the eurozone future of Greece take over. There were reports that on Monday, 700 million EUR where withdrawn from Greek banks. Against the US dollar, the single currency dived to 1.2734 – a 5-month low – from 1.2830. European Central Bank (ECB) President Draghi is due to deliver a speech on “Monetary Policy in Unconventional Times”, a rather interest topic that is expected to capture the attention of investors worldwide.

The US dollar (USD) appeared strong versus a basket of currencies as Retail Sales grew at a slower pace and Business Inventories decreased in April. The seemingly constant threat of Greek leaving the eurozone and its potential domino impact, heightened risk aversion and favored risk haven buying of the greenback for yet another day. Against the Canadian dollar (CAD), the US dollar rose to 1.0070 from 1.0022. Versus the Swiss Franc (CHF), the greenback surged to 0.9431 from 0.9360. Market participants are expected to tune in on the Federal Open Market Committee (FOMC) Minutes release due at 18:00 GMT, later today.

Oil prices dropped to 92.97 – a level last seen in December 2011 – from 93.93 dollars a barrel. Gold (XAU) plunged to 1543.00 – a fresh 5-month low – from 1558.34 US dollars an ounce. Against the euro, gold dived to 1213.08 from 1214.04 euro an ounce. Silver (XAG) moved down to a new low at 27.6497 from 28.2059 dollars an ounce.

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2810 SHORT @ 1.2810 64% of deals buy EUR
USDJPY 80.10 LONG @ 80.10 80% of deals buy USD
GBPUSD 1.6050 SHORT @ 1.6050 63% of deals buy GBP
AUDUSD 0.9950 SHORT @ 0.9950 80% of deals buy AUD
GOLD 1552 SHORT @ 1552 77% of deals buy GOLD
OIL 93.40 SHORT @ 93.40 87% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
GBP 08:30 Claimant Count in April 5k
EUR 09:00 Consumer Price Index (CPI) Final m/m in April 0.5%
USD 12:30 House Starts in April 0.68 mil
Equities EUROPE US ASIA3
FTSE 100 -0.51% S&P 500 -0.57% NIKKEI -1.31%
DAX -0.79% DJIA -0.50% HIS -2.70%
CAC -0.61% NASDAQ -0.30% CSI 300 -0.82%

3 at the time of writing
Please note that Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. In no way is it a recommendation by Easy Forex® for you to engage in any trade. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on Easy Forex®. This is not an advertisement or a recommendation in engaging / binding you in any forex transactions.

EU Morning Report- Greece fears pressure, BoE cuts growth forecast

Posted by on May 20, 2012 0 comments

The euro (EUR) recovered a little yesterday against the dollar edging higher to 1.2758 from 1.2681 as risk sentiment in the market improved slightly. Investors remain worried about Greece’s ability to avoid bankruptcy and stay in the euro ahead of Greece’s second election. Greece put a senior judge Panagiotis Pikramenos to be the leader of the Greek caretaker government until election on June 17. The single currency may remain under pressure on fears that a Greek exit from the euro may have a serious impact on countries such as Spain, Italy and Portugal. Some Greek banks were moved to an emergency funding assistance program due to the deteriorating quality of their capital.

The US dollar (USD) strengthened against a basket of currencies yesterday as risk aversion dominated the markets. Against the safe haven Japanese Yen (JPY) the greenback rose to a two week high at 80.54 from 80.29 but later surrendered some of its gains following the FOMC minutes. Minutes from the last Federal Reserve policy meeting showed that some policymakers believe that further easing may be necessary in order to support the ailing economy. Policymakers are also worried over the stubbornly high unemployment as well as inflation. Economic figures showed that the Japanese economy grew more than expected in the first quarter where Gross Domestic Product showed a 1% compared to a previous -0.2%. Focus is now on the US Manufacturing Index as well as Initial Jobless Claims figures.

The British Pound (GBP) plummeted yesterday against the dollar to 1.5888 from 1.5987 after Bank of England inflation report was released yesterday. BoE’s growth forecast was lower expecting a 0.8% economic growth in 2012 while inflation is expected to remain above the central bank’s 2% target for another year. BoE Governor Mervyn King warned that the eurozone debt crisis is the greatest threat to the UK economy.

Oil fell to a six and a half month low at 91.79 dollars a barrel but later rebounded to trade at 94.14. Gold (XAU) edged higher to 1553.70 dollars an ounce from 1526.80 and against the euro it edged lower to 1210.85 euro an ounce from 1212.99. Silver (XAG) dropped to a four and a half month low at 26.72 dollars an ounce from 27.96. Stay in tune throughout the day with !

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2760 SHORT @ 1.2760 57% of deals buy EUR
USDJPY 80.10 LONG @ 80.10 83% of deals buy USD
GBPUSD 1.5975 LONG @ 1.5975 66% of deals buy GBP
AUDUSD 0.9900 LONG @ 0.9900 75% of deals buy AUD
GOLD 1550.00 SHORT @ 1550.00 68% of deals buy GOLD
OIL 94.25 SHORT @ 94.25 63% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
USD 12:30 Initial Jobless Claims 365K
USD 14:00 Fed Manufacturing Index 10.0
Equities EUROPE US ASIA3
FTSE 100 -0.60% ▼ S&P 500 -0.44% ▼ NIKKEI 0.75%
DAX -0.26% ▼ DJIA -0.26% ▼ HIS 0.92%
CAC 0.31% NASDAQ -0.68% ▼ CSI 300 1.14%

3 at the time of writing

Please note that forex trading (OTC trading) involves substantial risk of loss, and may not be suitable for everyone. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on easy-forex. This is not an advertisement or a recommendation by easy-forex in engaging / binding you in any forex transactions.

EU Morning Report- Greek and Spanish woes weigh on the euro

Posted by on May 20, 2012 0 comments

The euro (EUR) plummeted against the dollar sliding to a four-month low at 1.2655 from 1.2748 as risk aversion dominates the markets. World equities tumbled as investors fear that Greece may leave the euro after the second election in the country in June. Poor economic data from the US and concerns about the growing instability among Spanish banks further weighed on the single currency. Credit rating agency Moody’s downgraded 16 Spanish banks while shares in Bankia, the state-rescued lender plunged on news that clients have withdrawn 1 billion in the past week. Fitch downgraded Greece’s rating from BI to CCC, the lowest possible grade for a country not in default, citing the heightened risk that the country may leave the eurozone.

The US dollar (USD) strengthened against a basket of currencies yesterday sentiment in the market was further hurt by weaker than expected economic figures from the US. Against the safe haven Japanese Yen (JPY) the greenback dropped to a three-month low at 79.13 from 80.37 after the US Philadelphia Fed Manufacturing Index surprised the markets by showing a disappointing figure of -5.8 while 10 was expected. The negative reading signals an economic contraction adding further on the Federal Reserve’s concerns about the pace of the US economic recovery. Japan’s Finance Minister Jun Azumi said that the Bank of Japan is ready to intervene in order to stop the yen from rising further.

The British Pound (GBP) continues to decline against the dollar falling to 1.5732 from 1.5920 following the Bank of England inflation report released on Wednesday. The report left the possibility open for another round of quantitative easing while emphasizing on the increasing risk the UK economy faces by the eurozone deepening debt crisis.

Oil fell to 91.60 dollars a barrel from 93.86. Gold (XAU) edged higher to 1579.78 dollars an ounce from 1542.55 and against the euro it edged higher to 1239.69 euro an ounce from 1210.86. Silver (XAG) advanced to 28.30 dollars an ounce from 27.40. Stay in tune throughout the day with !

Outlook Pivot Preference1 Sentiment2
EURUSD 1.2730 SHORT @ 1.2730 65% of deals buy EUR
USDJPY 79.70 SHORT @ 79.70 78% of deals buy USD
GBPUSD 1.58535 SHORT @ 1.5835 70% of deals buy GBP
AUDUSD 0.9895 SHORT  @ 0.9895 80% of deals buy AUD
GOLD 1558.00 LONG @ 1558.00 68% of deals buy GOLD
OIL 92.90 SHORT @ 92.90 84% of deals buy OIL

1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™

Calendar Currency Time (GMT) Event Forecast
CAD 12:30 Consumer Price Index 0.3%
Equities EUROPE US ASIA3
FTSE 100 -1.24% S&P 500 -1.51% NIKKEI 1.90%
DAX -1.18% DJIA 2.31% HIS 4.17%
CAC -1.20% NASDAQ 1.49% CSI 300 2.46%

3 at the time of writing

Please note that forex trading (OTC trading) involves substantial risk of loss, and may not be suitable for everyone. The information provided is based on data generated by third party investment research providers. Easy Forex® does not assume any liability as to the accuracy of such information. This information shall be used for reference only and it is not binding on easy-forex. This is not an advertisement or a recommendation by easy-forex in engaging / binding you in any forex transactions.