Easy Forex puts perspective over fears of Greece’s future

[easyforexww]

Easy Forex puts perspective over fears of Greece’s future
Written by: easy-forex team, on June 16, 2011 @ 2:04 PM

The euro plummeted yesterday as fears over Greece’s debt crisis intensified. The Greek Prime Minister, George Papandreou, offered to step down and proposed a unity government while protests in Athens against austerity measures continue. Against the dollar, the euro shed 2.4% breaking below the 1.4100 level to trade as low as 1.4090 from 1.4438.

The US dollar got a boost against a basket of currencies after consumer price index data revealed higher than expected figures in May. The dollar is also getting support as a safe-haven currency given heightened risk aversion and escalating concerns over the euro zone debt problems. Against the Japanese yen, the dollar traded as high as 81.05 from 80.38. Against the Swiss franc, the dollar rose as high as 0.8550 from 0.8442. Speculators are watching an interest rate decision which is expected today by the Swiss National Bank; they expect rates to be kept unchanged at 0.25%.The focus is on whether the SNB will comment on the appreciation of the franc and monetary policy.

Sterling fell yesterday after poor jobs data was released. The data showed that the number of unemployed people in the UK rose more than expected, hitting the fastest pace in almost two years. Against the dollar, the British pound dipped to 1.6145 from 1.6375. The focus now turns to the UK retail sales data released at 8:30 GMT.

Oil prices shed 6% falling to 94.01 dollars a barrel today from 99.93. Gold rose to 1534.44 dollars an ounce from 1513.87. Silver also ticked higher to 35.95 dollars an ounce from 34.79.

Currencies to watch out for: EURUSD and USDJPY
The EURUSD pivot point is at 1.4215 with a preference to enter short positions at 1.4205
The USDJPY pivot point is at 80.60 with a preference to enter long positions at 80.65
The OIL pivot point is at 97.75 with a preference to enter short positions at 97.75
The Gold pivot point is at 1535 with a preference to enter short positions at 1535
Today’s calendar and market movers:
Swiss interest rate decision is forecast to keep rates unchanged at 0.25%
UK retail sales in May is forecast to fall 0.6%
Europe consumer price index in May is forecast to gain 2.7%
US initial jobless claims is forecast to fall to 420K
US housing starts in May is forecast to rise to 540K

Equity markets:
US equities were negative on Wednesday with the S&P500 trading down -1.74% and the DJIA down -1.48%. The European bourses were also negative with the FTSE trading down -1.04%, the DAX down -1.25% and the CAC down -1.49%. The NIKKEI and the HSI at the time of writing are trading down -1.47% and -1.45% respectively.

[jen]

Originally Posted by easyforexww

Easy Forex puts perspective over fears of Greece’s future
Written by: easy-forex team, on June 16, 2011 @ 2:04 PM

The euro plummeted yesterday as fears over Greece’s debt crisis intensified. The Greek Prime Minister, George Papandreou, offered to step down and proposed a unity government while protests in Athens against austerity measures continue. Against the dollar, the euro shed 2.4% breaking below the 1.4100 level to trade as low as 1.4090 from 1.4438.

The US dollar got a boost against a basket of currencies after consumer price index data revealed higher than expected figures in May. The dollar is also getting support as a safe-haven currency given heightened risk aversion and escalating concerns over the euro zone debt problems. Against the Japanese yen, the dollar traded as high as 81.05 from 80.38. Against the Swiss franc, the dollar rose as high as 0.8550 from 0.8442. Speculators are watching an interest rate decision which is expected today by the Swiss National Bank; they expect rates to be kept unchanged at 0.25%.The focus is on whether the SNB will comment on the appreciation of the franc and monetary policy.

Sterling fell yesterday after poor jobs data was released. The data showed that the number of unemployed people in the UK rose more than expected, hitting the fastest pace in almost two years. Against the dollar, the British pound dipped to 1.6145 from 1.6375. The focus now turns to the UK retail sales data released at 8:30 GMT.

Oil prices shed 6% falling to 94.01 dollars a barrel today from 99.93. Gold rose to 1534.44 dollars an ounce from 1513.87. Silver also ticked higher to 35.95 dollars an ounce from 34.79.

Currencies to watch out for: EURUSD and USDJPY
The EURUSD pivot point is at 1.4215 with a preference to enter short positions at 1.4205
The USDJPY pivot point is at 80.60 with a preference to enter long positions at 80.65
The OIL pivot point is at 97.75 with a preference to enter short positions at 97.75
The Gold pivot point is at 1535 with a preference to enter short positions at 1535
Today’s calendar and market movers:
Swiss interest rate decision is forecast to keep rates unchanged at 0.25%
UK retail sales in May is forecast to fall 0.6%
Europe consumer price index in May is forecast to gain 2.7%
US initial jobless claims is forecast to fall to 420K
US housing starts in May is forecast to rise to 540K

Equity markets:
US equities were negative on Wednesday with the S&P500 trading down -1.74% and the DJIA down -1.48%. The European bourses were also negative with the FTSE trading down -1.04%, the DAX down -1.25% and the CAC down -1.49%. The NIKKEI and the HSI at the time of writing are trading down -1.47% and -1.45% respectively.

With the debt ceiling probably to be raised and the debt crisis being rescued, I think forex markets are bound to bounce back up.