Good day to all.
Time flies and it is mid week again. Remember our weekly mission . . to finish the week GREEN 🙂
Yesterday, the US Trade Balance data indicated that the US economy’s recovery may be picking up. A stronger demand for Greece’s treasury bills at an auction suggested that the firming up of the details of the aid package for Greece probably brought relief and confidence to most investors.
Lets take a look at the EUR/USD. Remember, making money in forex is not an easy task. Homework must be done!
After a bullish run up above 1.3600, the EUR/USD begins its ranging and continues so for now.
The S&P 500 goes above 1200! The optimism towards the US economy seems to be strong.
Gold is currently trading at $1158+, probably due to a weakened US Dollar.
Today brought a number of economic data from the US and the results were mixed. While US Retail Sales shows us a better than expected figure, Business Inventories in the US were higher than expected, typical of a slower business climate. This probably is one of the reasons for today’s ranging action.
In the meanwhile, Fed Chairman Bernanke apparently stepped forth to manage expectations and commented that the economic recovery of the US will probably be moderate due to factors such as high unemployment. He reiterated the pledge to keep interest at record low rates for an “extended period.” This probably dampened the USD outlook for investors looking for higher yields.
Having said so, the overall sentiment probably remains positive as the better than expected US Retail Sales and positive data from Asia suggested a momentum of recovery. Indeed today, accelerating growth in Singapore prompted the nation’s central bank to revalue the Singapore Dollar, causing it to strengthen. This contributes to the suggestion that Asia remains one of the forerunners of the global economic recovery.
Before we get our feet swept off the grounds, i would like to remind again that we are not quite out of the crisis yet as many aspects of the economy remains weak. For example unemployment. Yesterday, i also mentioned that the number of US banks closed by regulators this year has hit 42.
Important economic data due to be released includes the US Unemployment Claims and the EURO ECB Monthly Bulletin. Check the economic calender below for more details.
Bullish momentum may bring us to 1.3680/740.
Bearish sentiments may target 1.3600/550.
Have you heard of the sleep debt? I slept 8 hours yesterday but i am so deprived of sleep that i woke up not feeling much better. LOL. This is the consequent of a modern society? ( I am presuming cavemen probably had much more sleep )