Today is mid week and i hope you are harvesting your pips!
In our last review, i mentioned that the lower personal income in the US may bear a burden on the US economy as consumer spending may lessen too. The general sentiment was rather negative as investors worried about the recovery of the economy.
Looking at the EUR/USD chart above, the currency pair seems to be done with ranging for now and has since shot up.
S&P 500 is advancing and is now at 1078+.
Oil is around $73+.
Gold remains elevated at $1246+. This is a reminder that we may not be quite out of the woods yet as gold is often a popular investment during times of uncertainty.
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Better than expected industrial data from both of the world's economic giant, the US and China brought upon a wave of positive sentiments. Investors were negative and this turn out of positive economic data probably triggered a knee jerk reaction. Joining on the party is Australia as the country posted economic expansion from the first quarter.k
On the employment front, the US remains weak as the ADP Non-Farm Employment Change came out worst than expected. While the media is not focusing on this for now, always keep a look out for reversal. The unemployment crisis in the US remains and threatens to derail the recovery.
From a technical point of view, the 1.28 line may be a tough nut to crack.
Tomorrow brings us data such as the Euro Zone Minimum Bid Rate and US pending home sales.
Trade Safely.
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Do you like Twilight? While i find the story a little too much of a fantasy, i must say the romance experienced by Edward and Bella leaves me smiling to my self. ( P/S Jacob is handsome ! )
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