Forex Market Commentary
Greece secures a bail out today with 86 billion Euro and global equities soar. But at what costs? The package comes with strings of conditions inclusive of raising retail VAT. Prime Minister Tsipras is already facing a backlash of disagreement from within his own political party. But Greek banks are in constant fear of a customer run, businesses are collapsing, unemployment soaring and the pension system is a mess and VAT has to go up adding more pain on Greek consumers.The Dow piled on 217 points to come in at 17977.68 and Euro Stoxx 50 gained 57 points at close at 3592.00. From the Nikkei to the CAC, global equities found relief. The EUR found continuing support whilst the USD demonstrated a stubbornness to yield ground. With Greece agreeing in principle to work with it's creditors the likelihood of volatility in the Euro currency is expected to dwindle in the weeks ahead, all things being equal. The knock on effect sans extremely exciting US economic data will be a diminishing volatility for the USD and commodities as well. Add to this the flight to safety factor; should bonds traders see stability in the Euro zone now that the dread Grexit talk has been put to bed, then what are the implications for the US bond markets as the quality bond investment? it is quite possible that global funds may divest out of the long end of the yield curve from 10 to 30 year US Treasury and find it's way back to the Euro markets and also Emerging markets as the risk factor rippled through the international bond markets. That would spell diminishing demand for the USD to purchase Treasuries.
On the other side of the globe whilst Chinese equities are entering a lull analysts are pondering on the way the government handled the crisis and what the implications are for international investors in the future. Chinese equities were largely flat with the Shanghai composite closing at 4002.47 See on Bloomberg the following report on Chinese equities -
http://www.bloomberg.com/news/videos/2015-07-14/credibility-in-chinese-markets-almost-destroyed-lewis
But on a positive side on the flip side Bloomberg handles the following analysis spelling out the likelihood of rising crude oil demand to go in hand with the taming of the Chinese bearish outlook. Such a move would naturally help oil prices to rise and add pressure on the USD.
http://www.bloomberg.com/news/videos/2015-07-14/china-retakes-top-oil-buyer-spot-from-u-s-
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
96.826 +0.023 +0.03%
96.826 +0.023 +0.03%
Support 93.653 Resistance 97.343
Forward 1 year - 95.943. Low growth positive line.
Forward 1 year - 95.943. Low growth positive line.
EUR
1.10015 +0.00028 +0.03%
1.10015 +0.00028 +0.03%
Support 1.08430 Resistance 1.15030
Forward 1 year - 1.13770. Low growth positive line
Crude Oil
52.01 -0.70 -1.31%
Support 51.32 Resistance 55.78
Forward 1 year - 61.31. Low growth positive line.
Forward 1 year - 61.31. Low growth positive line.
Gold
1155.450 +0.235 +0.02%
Support 1,150.5 Resistance 1,174.3
Forward 1 year - 1,186.2 Low growth line.
Pieter Bergli - DeLoren Trust Holdings
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Forex market commentaries and media reports for free
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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
