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June Gold Falls as Tensions Ease in Euro Zone

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, May 10, 2010.

  1. futuretrends24

    futuretrends24 New Member

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    Today’s sample of Futures Analysis from FuturesHound.com

    June Gold is down at the mid-session after the European Union announced it was going to provide aid to the ailing Euro Zone economy. Despite the weaker U.S. Dollar, cautious traders sold gold overnight although there was a technical bounce off the low. For several weeks, gold has indicated a decoupling from the Dollar because of speculator buying driven by the crisis in Greece. Last week is was clearly evident as the financial crisis widened in the Euro Zone that traders were treating June Gold as a safe haven market.

    June Treasury Bonds are trading sharply lower at the mid-session. The newly proposed sweeping-aid package for the Euro Zone helped to support the Euro and drive up demand for riskier assets. This triggered a liquidation break in the Treasury futures markets. Last week nervous traders bought Treasury Bonds and Treasury Notes for protection in a flight-to-safety rally. Look for lower markets as long as stocks remain firm. The first objective of the current break is 119’01.

    U.S. equity markets are trading sharply higher following the announcement by the European Union to provide much needed financial aid to the troubled Euro Zone region. This bullish news is helping to bring assurances to traders that the policymakers are behind the Euro and willing to do what they can to instill confidence in the Euro. For the most part, trading has been rangebound throughout the day. This type of move is rarely seen and it looks as if investors weren’t interested in chasing the market higher. This makes it vulnerable to a sell-off into the close.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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