Good day Koalas!
Today is a rather flat day and i hope your trades are fine so far. Remember that staying on the sidelines is a trading position as well 🙂
Yesterday gave us a shocking forex gap as brokers came back online from the weekend. The gap was probably due to the promise of up to $61 billion in loans that Greece received. This is a combined package put together by the Euro Zone and International Monetary Fund. This solution is to avoid a failure of Greece to meet her debts redemption obligations.
The commotion had since subsided and the EUR/USD is currently trading in a range.
The S&P 500 retreats from it’s high in the meanwhile as we go into the earnings season. Metal producer Aloca fell short on estimates of it’s earnings and weighted down on the sentiments.
Oil loses some of it’s steam as well and is currently trading at $83+.
Gold continues to fall and is valued at $1147+ at the moment. As gold is usually an investment of choice when it comes to economic uncertainty, a fall in value may be due to the risk atmosphere subsiding ever since the Greece aid promise was announced.
A report of the US Trade Balance data suggested that the economic recovery may be picking up. The trade deficit widened due to a higher level of imports. This is probably caused by businesses and consumers having a better outlook of the economy.
Across the Atlantic in the Euro Zone, a stronger take up of Greece’s auction of treasury bills indicated that the release of details with regards to the aid package for Greece probably brought back some much needed confidence in the Euro Zone. Be cautious though and watch out for unexpected developments.
Despite all the apparent positivity for now, we have to remember that we are not quite out of the economic crisis yet. The number of banks closed by regulators in the US have hit 42 as of now, a stark reminder of the fragile economy.
Bullish momentum may see us testing 1.3600/680.
A strong bearish attack may test 1.3550 followed by 1.3455.
Once again i did a minor change to the website’s layout. I hope you like it! This is indeed a work of love for me 😛 Every time i make an improvement that results in helping a koala out there, i am happy!
Trade Safely and see you soon!