Good day koalas…
I knew making fun of Monday blues will come back at me one day! I had a bad Tuesday. Even better call it Post Monday blues – blues.
Yesterday, we saw gold hitting high levels on probable risk aversion. Although Greece accepted a $145 billion aid package from the International Monetary Fund and its Euro Zone partners over the weekend, investors were careful and they feared of potential complications. This aid solution needed the buy-in of a number of Euro countries and it was not known if any objection might arise. Worries of further strikes in Greece or the debt problem spreading to other countries added to the negative sentiments.
The EUR/USD sliced through the support line of 1.3090. ( It did stop it momentarily but the bearish pressure was too strong )
The S&P 500 suffers a break down too and is currently below 1180. Should it stay below, we may be seeing strong negative sentiments.
Oil retreats back to $86+.
Gold is pressured by the strong US Dollar but is still trading around $1170+. Boosted by demand probably due to risk aversion.
The strikes in Greece are escalating. It was reported that Greek government workers closed schools, hospitals and disrupted flights. Demonstrations were held at Acropolis. This is against the further wage cuts and tax increases consequent of the measures to cut budget deficits. A general strike is reported to be planned for tomorrow. Investors do not like a troubled country and this probably caused much risk aversion. The Greek government is sandwiched between the need to implement deficit cutting measures and the unhappy citizens.
There is growing fear that the media will soon turn their attentions to Spain or Portugal now that the Greek Deficit Crisis is “old news.” These two countries recently received rating cuts. Speculations of Spain requiring a bailout were heard and these were promptly dismissed by the Spanish PM.
Calls by the German Chancellor’s coalition to allow the “orderly” default of the European Union member states probably caused more negative sentiments too as investors speculate if there are troubles on the horizon.
Tomorrow brings us important data such as the US ADP Non-Farm Employment Change. The unemployment crisis in the US is far from over and hence watch out for unexpected developments. Eurozone releases it’s retail sales figure too and investors usually see this as an indicator of the consumer economic health.
Bullish relief may bring us to 1.3090/1.3200.
Bearish devastation may target 1.3000/1.2950.
OK back to my grumblings. I had lots of nonsense today! Bad work, Bad luck, Bad PC, Bad gastric.. do we need more already? How can i make life better without resorting to challenging self positivity talks …” Bad is good. Bad is good. Bad is good.” Yes it doesn’t work. DUH.
Trade Safely and don’t make it a Bad trade.
P/S something good after all. I improved on the Forex Education section. Now i group articles together in classes. Yay! Check out the Koala’s Learn Forex Trading Training College