Remarks from the S&P rating agency stating that further restructuring is needed in Greece continues to put pressure on the markets. The Euro, equities and gold are extending losses for the third straight day. As pointed out on Monday’s article, the markets ran up on Bernanke’s stance on “accommodative” policies by the Fed; however, the [...]
The rallies on Monday from Fed Chairman Bernanke’s comment begin to fade. The Euro/USD, gold and the Dow Jones Industrial Index failed to break their respective resistance levels and began retreating.
There is little change in the markets after yesterday`s rally. The only mover today is the USD/Yen, which strengthened in today’s session. Like most Central Banks, the BOJ does not desire a strong currency. The SNB made it very clear that 1.2000 is the limit for Euro/CHF. The Federal Reserve, through its monetary policies, has [...]
Bernanke reiterated today that the Federal Reserve`s “accommodative monetary policy” will continue despite the improvement in the economy. The Fed will keep interest rates near zero until 2014 citing there is still “significant downside risks”.
The economy grew at 3 percent annual rate in the 4th quarter, but first half growth is likely to disappoint, renewing upward pressures on unemployment.
Here are the forecasts for upcoming economic data.
Last year, the Swiss Central Bank intervened in the CHF to prevent the currency from increasing in value. However, that only worked for a short period of time as we see the CHF gaining strength again in recent weeks.
Overnight, China’s manufacturing data showed a slowdown in the Chinese economy dragging global markets lower today. Concerns over the Chinese economy is nothing new and recent economic data out of China does suggest the Chinese economy is contracting. The Shanghai index is slowly giving up recent gains and is trading below the 2,400 level. The [...]
Gold is holding steady above $1,640 support since last week`s sell-off from $1,714. It has been sideways trading for a week with a range between $1,640 to $1,670. Resistance for gold is seen at $1,680 followed by $1,710. Support lies at $1,640 followed by $1,600 with major levels in the low $1,500’s areas.
Euro/USD is trading at the first resistance level of 1.3230 at the time of this article. The Euro is gaining ground versus the USD due to some short covering and establishing new “risk trades” in the Euro/Yen. Moreover, tensions in Greece and Europe have lessened in recent days, which could be a positive psychological factor [...]