Good day Koalas!!!!!!!!!!
Today is cash your pips for beer day. What does this mean? This means that if you are GREEN for the week, good job! Enjoy the weekend. If you are not, do not engage in emotional trading. Head to The Koala’s Learn Forex Trading Training College and learn forex the right way!
Yesterday, we noted that the ECB was refraining from taking concrete measures to rectify the crisis. Comment was made that European officials should instead increase their measures to cut budget deficits.Investors were also worried about hiccups in the execution of the aid solution for Greece.
After a test of the 1.2550 line, the EUR/USD retreats above 1.2600.
The S&P 500 faced a massive drop yesterday and NYSE was reported to comment that electronic trading was to be blamed for the plunge. The plunge was so deep that i decided not to post it here as the chart will be too long! To give you an idea how bad it was, the plunge briefly erased more than $1 trillion in market value. The S&P 500 had since recovered and is now trading around 1120. It remains depressed by the crisis in the Euro Zone.
Oil has dropped below $80 and the current crisis seems to be seriously affecting the recovery.
Gold has touched $1200 despite a stronger US Dollar. This suggests increased demand due to risk aversion as gold is usually an investment of choice during stormy economic weather.
An emergency conference call by G7 finance chiefs today was made to discuss the impact and spread of the Greek crisis. The Australian Prime Minister said that investors felt that Europe’s efforts so far is “inadequate.” and the UK Prime Minister commented that the crisis is “deteriorating.” The apparent lack of concrete measures by the ECB worried investors and dampened sentiments.
The time taken for the European nations to come together for a solution for the Greek deficit crisis raised concerns for investors as speculations were made that in the event of any other European nations that plunges into trouble, the same “sluggish” efforts may be seen.
Over in the US, while the Non-Farm Payroll performed better than expected, do note that the unemployment rate has increased to 9.9% due to the increase of job seekers. It is important that we always analyze data from both perspectives.
As there is an EU economic summit ongoing, i will definitely think twice about leaving trades open over the weekend. Recently, forex gaps over the weekend seems common.
As we prepare for the close of the week, bullish relief may bring the currency pair to 1.2720/1.2800.
Further bearish developments may send it down to 1.2645/1.2550.
Finally weekend is here! I am so tired this week that i can sleep like a koala! I have been waiting for the weekend to do some catching up on L4D2 too. Remember that we are facing tough times in the financial world and hence practice proper money management.
Trade safely and stay tuned for the weekly review 🙂