It is the second day of the trading week and i hope you are making money from your forex trading.
In the previous review, sentiments were low as it was speculated that another round of quantitative easing may be conducted by the US Feds. Investors are concerned that the US economy may still be far from being fully recovered.
Looking at the EUR/USD chart above, we can see the currency pair climbing to test the 1.34 region.
The S&P 500 is currently above 1220 and has reached a 2 years high. This is much welcomed by the markets as it suggests positive sentiments.
It was reported that President Obama has agreed to a two years extension on tax cuts. This is probably increasing the risk appetite of investors. Furthermore it was reported that the US Treasury had sold it's remaining stocks of citigroup. With this development, a number of investors feel that the worst is over and the road to recovery is making progress.
Over across the Atlantic, developments are probably bleak. There are investors that believe that Portugal will be next to require a bailout and that there will probably be nations leaving the Euro Zone due to the economic differences. The budget deficit of Greece was reported to be highest among developed nations, clocking in at 15.4% of the GDP. Spain is at 11%.
More economic data is due tomorrow including the German Industrial Production. Be on a lookout for any market developments that may cause risk aversion.
Trade Safely
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