As the market anticipates a crucial decision for Greece government led by PM Georgios Papandreou will survive as he revamped his cabinet to make certain that a continued support for austerity would be made. That is inspite of the continued strikes and protest against the programs. This has prompted the EURUSD to move higher to 1.4432 and the cross rate on the EURGBP to move back upwards to the 0.8883 high respectively. Yet, the unconvincing rally can only be considered to be a correction from its low; as no other significant momentum build-up for the Euro to move further was indicated. the only exception was the negative figures on existing home sales that added to the USDX to move lower back below the 75.05 near term support price level.
With commercials still dominating the market place, we do expect a continuation of this near-term rally on a daily basis with wider trading ranges that may run out of steam nearing the closing of the month's trading. Although, the FOMC and the EU June 23-24 meeting would be dictating the direction for the market by then leaving a much wider room for volatility to increase significantly.
And even the precious metals and stocks have been the beneficiaries of this continued market condition after experiencing a roller coaster ride from the past week's trading. With Gold prices back up at the USD1550.00 levels from a low at USD1510.45 and the Dow Jones at the 12190.00 levels.
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