How are you this day? Whoever Wherever you are, i wish you well!
Yesterday, we noted two reports with regard to the Euro Zone.
An investment fund manager mentioned that Greece still faces a possible default once the bailout expires in 3 years due to the amount of debt incurred. In another report, an ECB governing council member mentioned that the subject of withdrawing emergency measures will wait until December so as to give the economy time to gather strength. While this might sound like a plan, investors may speculate that this is a sign of weakness of the Euro Zone economy.
Looking at the EUR/USD chart above, the resistance area i mentioned yesterday did turn out to be valid and once again i can shamelessly boast ... I LOVE IT WHEN MY CHART WORKS .. FOR YOU !!! Ha ! I am of course a humble koala :)
The S&P 500 has slipped back below 1100 for now.
Oil is losing ground again and is now $72+. Oil can be a clue to the global economy's health and hence care must be taken to see if it goes even lower.
Gold is on the move. Despite a stronger US Dollar, it strengthened. Gold is usually a popular investment during times of uncertainty and hence risk aversion may be present.
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The latest fear to inflict upon the risk adverse investors is the possibility that European lenders may need to shore up their capital due to their holdings of debts of the weakest economies in the Euro Zone. This comes after the report yesterday that an investment fund manager mentioned that Greece faces the risk of default. Investors are worried that a Greek default may affect all the banks holding large amount of sovereign debts.
The German Factory Orders also came out much worst than expected, prompting investors to drop their risk appetites. The question of the Euro Zone recovery hangs over the market.
I wish to highlight on an article regarding the unemployment rate of the US. It is feared that the current recovery of the US economy may be too slow too sluggish for the unemployment rate to improve. 10% may soon be a reality. I personally feel that the unemployment rate is indeed a crisis and close monitoring must be done.
Tomorrow brings us more Euro Zone news including the German Industrial Production. If these turn out mainly negative, we may see more risk aversion.
Trade safely.
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Do you love to eat? I simply love it. Well i am not greedy, but i am easily hungry! No joke. After eating a full meal, three hours and i can feel my stomach signaling... heehee just like a koala.
Related Forex Articles from the Koala Forex Training College.
- Gold is a popular investment during times of uncertainty
- Gold and the US Dollar
- Oil may be a clue to the global economy's health
