Forex Market Commentary
Again the Dow took a tumble yesterday dropping 75 points to close at 17890.36 todday. This time in utter dismay that the Greeks could play such hardball with the EU ministers and IMF. So why would the US equities markets be affected by a nation that doesn't even have 2% of the EU combined GDP? The answer shows how close the US, EU and China and their economies are integrated today. if Greece defaults on its bond obligations to creditors the effect would mean a tightening of credit in the EU zone for a short while. That effect of higher rates would then knock EU economic growth and percolate down to EU retail sales. Higher unemployment means that less Euro citizens are likely to spend their disposable income on a MCDO or a KFC meal, or Coca Cola or even classy consumer brands like GE refrigerators or even Ford motor vehicles. Not only that, banking giants like Citibank would not be able to sell as many credit cards in Europe and airlines companies could suffer a knock on effect as crude prices sends jet fuel back up and consumer demand for tickets just drops. All round what happens in the Euro zone affects US corporate earnings. That is why what happens in the Euro Zone so affects US corporates and most of the Fortune 500 companies that are so integrated with European consumer markets today. sluggish economic performance in the EU and a down turn in China could send shivers to the US equities markets whose multinational conglomerates have two feet firmly planted in both regions for a sizable and countable flow of corporate earnings. Hence a sneeze in the EU over the Grexit can become a contagion flu in the US equities markets. So now after much heavy wrangling talks the adversaries have to reconvene on Saturday with a looming IMF payment to be made by Greece next week Tuesday and germany standing by yet again to cover the sins of Greek excesses.
USDX marches up again and the EUR takes a tumble. Crude oil drops a whole 2 dollars on the back of this deepening Euro zone crisis and Gold also takes a knock to the 1174 mark. traders are once again becoming nervous over the uncertainty. Either one way or another Greece has to settle; either pay up or refuse and let the markets go on with their reactions.
Read on Bloomberg today how tiny greece is affecting currency markets -
http://www.bloomberg.com/news/articles/2015-06-25/tiny-greece-s-threat-to-currency-credibility-is-why-it-matters
Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.
USDX
US Dollar
95.237 +0.026 +0.03%
95.237 +0.026 +0.03%
Support 93.362 Resistance 95.954
Forward 1 year - 96.233. Low growth positive line.
Forward 1 year - 96.233. Low growth positive line.
EUR
1.1181 0.0000 0.00%
Support 1.10513 Resistance 1.12733
Forward 1 year - 1.12770. Low growth positive line
Crude Oil
59.65 -0.05 -0.08%
Support 58.00 Resistance 61.36
Forward 1 year - 62.70. Low growth positive line.
Forward 1 year - 62.70. Low growth positive line.
Gold
1174.850 -0.100 -0.01%
Support 1,170.3 Resistance 1,200.3
Forward 1 year - 1,175.8 Low growth line.
Pieter Bergli - DeLoren Trust Holdings
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Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers
Pieter Bergli - DeLoren Trust Holdings
A non-profit commitment to provide education on the properties of currency markets
Forex market commentaries and media reports for free
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/ bears no responsibility for the trading actions of its readers
