It is Thursdayyyyyyyyyyyy koalas!
Tomorrow is our special day. Long time followers will know the call. If you don’t, stay tuned for tomorrow’s review.
Anyway, yesterday gave us a taste of things to come as the EUR/USD turns bearish. I mentioned that the Greek Finance Minister said that Greece could activate the $60 billion emergency aid solution led by the European Union before discussions on the conditions for the aid end in two weeks’ time. First day of discussions between the officials of Greece, European Commission and the IMF also brought concerns that the focus on additional deficit-cutting plans for Greece may spark more strikes.
The EUR/USD takes a major dive today. Having tested the 1.3285 region, it has eased above 1.3300. Remember that support and resistance lines are never a single pip.
Despite the apparent resilient of the American economy, we are still a global market and the S&P 500 displays signs of a drag due to the Greek deficit crisis.
Oil remains around $85.
Gold is trading around $1141. An interesting point to note is that despite a stronger US Dollar, gold is holding up pretty well. This suggests possible extra demand due to risk aversion.
Oops Greece did it again!
The EU today lifted its budget deficit estimate of Greece to 13.6% of gross domestic product from 12.7%. This brought about much concern as this suggests that things may be worst than expected.
To complicate matters, a Greek civil servant strike closed hospitals and shut the 2500 year old Parthenon temple. As strikes are a disruption to the economy, investors definitely do not welcome this. It is most unfortunate however as the Greek government is torn between budget deficit trimming measures and the opinions of the citizens.
Today, Moody’s also downgraded Greece ratings and mentioned that the outlook is negative.
Tomorrow is Friday but please do not let your guard down. Important releases include the German Ifo Business Climate and US New Home Sales.
A bullish return may target 1.3360 / 400.
Further bearish break down may re-target 1.3285 followed by 1.32.
The L4D2 DLC will be released soon. Yay!
Remember, do be green for the week. *