Market Commentary
Greece gets a 4 month debt extension, the Euro zone remains skeptical, but traders can breathe again, forget about the gargantuan 26 trillion dollar currency derivatives exposure and watch the EUR stabilize at the 1.13 level with a relief for the moment. "Tonight was a first step in this process of rebuilding trust .. We have established common ground again to reach agreement on this statement" said Jeroen Dijsselbloem, chairman of the 19-nation Eurogroup, at the news conference. Moreover the US sighed a relief too as the Dow Jones industrial average closed up 154.67 at an all-time high of 18,40.44 on the back of this welcome news. as much as can be said investors do not want to see a Grexit and instability in the Euro zone. The Greek debt crisis has to be resolved for the health of the global debt markets.
The USD had a direful week of bad news and yet impressively maintained the high ground at 94. It all started on
tuesday - Empire State Mfg Index was worse than expected, then the
Housing Market Index (HMI) was worse than expected. Along came wednesday -
MBA Purchase Applications were expected to be bad, but turned out even
worse. PPI (inflation) data was worse than expected, Industrial
Production data was 50% worse than expected and on thursday the Philly Fed Survey and Leading Economic Indicators (LEI) were worse than expected. Yet the Dollar held the 94 ground. Very impressive.
In an interesting article on Reuters today it was noted that Dollar net longs have begun to shrink which is quite interesting as in the present sense it reflects an expectation of US economic weakness read full article on Reuters here - http://www.reuters.com/article/2015/02/20/markets-forex-cftc-idUSL1N0VU29Q20150220
US DX
94.320 -0.075 -0.10%
Support 93.667 Resistance 95.227
EUR
1.13780 +0.00095 +0.08%
Support 1.12183 Resistance 1.15243
Crude Oil
50.76 -1.07 -2.05%
Support 49.56 Resistance 53.12
Gold
1201.955 -5.215 -0.43%
Support 1,188.4 Resistance 1,223.6
Pieter Bergli - DeLoren Trust Holdings
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