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29/6/2011 - The Current Market Sentiment

Discussion in 'Current Market Sentiments' started by fx-recommends, Jun 29, 2011.

  1. fx-recommends

    fx-recommends Content Contributor

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    The gains of the US stocks could continue today after the Greek parliament had passed the planned austerities measures by the Greek government which had the acceptance of EU and IMF for giving Greece the second part valued 12 billions euros from their planned 110 billions euros nearly a year ago for supporting it.
    This required step by the lenders was very important for restoring back confidence in the markets which have suffered by the worries about the Greek debt recently as it is to help Greece to avert default over the short term because of the lenders insistence on having an agreement in the Greek parliament on these required measures in the forms of cutting the governmental spending, hiking the taxes and going forward in privatization public assets in Greece by lending it more funds.
    This acceptance could calm down the concerns about other European ailing economies by debt in the euro area such as Ireland and Portugal which required the IMF and the EU financing assistance too.
    The Single currency which has been possessed by the developments of this crisis recently could rise over 1.44 versus the greenback after this agreement announcement which has been expected since last week ability of the Greek government to gain confidence by 155 majority to 143 and this 155 majority has been repeated again today but this time against just 138
    while the greenback was under pressure by improving of the markets risk appetite with optimism of this new approving today which has come accompanied with surprising rebound of US pending home sales figure of May rising by 8.2% while the markets were waiting for just 2.4% after initial collapse in April by 11.6% has been revised down too to 11.3% reducing the market worries about the US housing market.
    God Willing, The single currency is expected to face resisting levels now at 1.4495, 1.455, 1.4651 then 1.4695 whereas it has formed its recent lower high below 1.4939 which exposed it to be under technical pressure to fall before finding a bottom at 1.4072 and in the case of getting down again from here, it can meet supporting levels at 1.4238 then 1.4102 which is forming now the pair higher low above 1.4072 over the short term supporting the pair currently to get over 1.441

    Kind Regards
    FX Market Strategist
    Walid Salah El Din
    E-Mail: mail@fx-recommends.com
    http://www.fx-recommends.com
     
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