Good day everyone.
Today is Thursday and once again we are approaching the end of the week. Hopefully you are green in profit!
Yesterday we noted that the strikes in Greece were getting worst and it even resulted in three deaths. A comment was made that there was a threat that the crisis in Greece might spread to other member states. Furthermore. Portugal might receive a rating cut as Moody’s Investors Service noted that the country was facing challenges to reduce it’s budget deficit.
Reviewing the EUR/USD above, the currency pair is facing immerse bearish pressure as it slices through supports with ease.
The S&P 500 bashes through 1160 and is currently around 1150+. This indicates negative sentiments as investors probably withdrew their investments from riskier assets.
Gold… GOLD IS CURRENTLY AT $1190+. This suggests that the demand may be strong. Gold is priced in US Dollar and despite a much stronger dollar, it has risen in value. Gold is often an investment of choice when it comes to economic apprehension and hence risk aversion may be strong.
While the Euro minimum bid rate remains the same, investors were apparently not pleased with the comments. ECB apparently resists the pressure to take new measures to combat the Euro Zone’s spreading deficit crisis. Trichet mentioned that the ECB felt that Spain and Portugal don’t have the same difficulties as those faced by Greece. European officials should instead increase their measures to cut budget deficits. Investors are worried that the crisis may spread beyond control. Concerns were also noted of the looming strikes and their possible impact on the economy.
Germany is currently in the midst of debate with regards to the aid solution. Investors are worried of any potential hiccups. With more strikes being planned for Greece, the outlook seems bleak.
Bullish relief may target 1.2800.
Further bearish assaults may test us at 1.2645/550.