News out of the EU summit that the European banks will be recapitalized sparked a global rally in equities and commodities. The USD was sold off and Euro/USD broke through some major resistance levels as shorts were exiting.
The Supreme Court decision upholding the Affordable Health Care Act requirement that individuals purchase health insurance or pay a tax, as well as most other provisions regulating the health insurance market, may ultimately instigate a single payer system, akin to the British National Health Care Service.
Euro/USD reached its first target at 1.2400 today before the EU summit. It is doubtful that this latest EU meeting will achieve anything meaningful and the Euro/USD will remain under pressure. It is impossible to have monetary union without a fiscal union in the Euro region. The obstacle in a fiscal union implies a political [...]
Spain, Italy and Others Should Radically Restructure Debt and Exit Euro EU leaders are considering radical reforms to restore confidence in the euro and the finances of Mediterranean states. These reforms and relief efforts for troubled governments are doomed to fail, and it would be better for these states to radically restructure sovereign debt now [...]
There is no strong follow-through to the downside after Euro/USD broke 1.2500. The pair is trading around the 1.2500 area at the time of this article after rebounding from a low of 1.2440. The failure of a deeper depreciation of the Euro/USD, after 1.2500 was broken, clearly indicates a very crowded short Euro trade even [...]
Euro/USD continues to head lower as the Eurozone problems deepen. The currency pair is eyeing 1.2400 as the first target.
Here are the forecasts for upcoming economic data.
Euro/USD is testing a small trendline support at 1.2560 at the time of this article. This trendline support was drawn from the recent low of 1.2275 on June 1, before Euro/USD rebounded, to 1.2743, after the Greek elections. After 1.2560, support levels come in at 1.2400 and 1.2340. Resistance levels are at 1.2640, 1.2759 followed [...]
Higher education is in crisis, and leaders like recently dismissed University of Virginia President Teresa Sullivan bear a heavy burden of responsibility, simply put, for not effectively leading.
The Federal Reserve announced today that it will extend its “Operation Twist” through the end of the year. The Fed will be selling $400 billion of short-term debt and replacing with an equal of longer-term debt. The Fed’s action was expected by the markets but the hope of QE III did not happen. The Euro/USD [...]