Thu, 22 Mar 2012 06:23:00 +0400
Large-scale injections of liquidity, which European Central Bank has given enough during the last historic period, and providing financial aid to Greece, which enabled to avoid default in March, have certainly eased markets. However, many experts suppose that such tranquility is deceitful and global – situation in euro zone is getting worse despite the efforts of international credit organizations and European authorities.
Expressing experts’ opinion, senior economist of Citigroup Inc., former member of Monetary Policy Committee of the Bank of England, Willem Buiter in his interview to Bloomberg agency claimed, "European Central Bank has drowned markets and banks in liquidity. There is a common feeling, close to euphoria, в момент, when markets are drowning in liquidity, which makes us believe that all problems are gone." Considering the fact that Greek issue has not been fully resolved, Willem Buiter sees even more serious threats, particularly from Spain , which is "... the key country that I worry about most. It has moved in the wrong direction and is currently exposed to higher risk of restructuring sovereign debt than before."
At FOREX market EURUSD currency pair currently is in the process of rising the wave level of correction within h4 rising wave. Further motion will be stipulated by breaking or bouncing of AO Zotik index main line from the line of support/resistance at h4 timeframe. Earlier hint, according to the System of Early Prediction of Masterforex-V Trading Academy, may be given by termination of m15/m30 "С" within correction.
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Today, on October 23rd, the bullish sentiment in the market of the US Dollar is still underway. This sentiment is backed by strong economic figures coming from the USA amid weaker figures from the EU, Japan and China – other major economies.
Amid positive stats on US inflation indicators, the US Dollar continued its way up against the common European currency. Still, the move suspended at 1.2613. This is still the low of the current week. At the same time, this is the point, the currency pair started recovering from on October 23rd. So far, the currency pair has already managed to recover up to 1.2670.
Another US corporate report season is underway. US corporations are currently reporting on their financial performance in Q3 2014. For instance, the Coca-Cola Company reported on Tuesday, October 21st, to show us disappointing quarterly financial performance. In particular, the company’s global sales remained unchanged while the proceeds came out worse than expected. This naturally made Coca Cola’s stock drop in value the same day. McDonand’s and IBM also reported poor results.
Forex has turned into a major source of stable income for thousands of professional traders worldwide. Still, this success would be impossible but for reputable and reliable Forex brokers helping their clients make big money. Such trusted companies are oriented towards client needs and desires, simultaneously striving hard to improve their offers (including trading conditions) to let everyone enjoy even more convenient and efficient trading.
As you know, the contemporary trading industry has become extremely sophisticated and competitive. Hundreds of broking companies keep competing for the right to render broking services to new and existing traders and investors. You shouldn't be surprised with the fact since Forex is the world's biggest financial market where trillions of dollars are turned over on a daily basis.
Snipers have always been known for being patient, self-controlled. They are perfect in using weapons and evaluating the situation objectively under stress. However, it turns out that such skills are valuable in other sphere of human life and activity, including Forex trading. The thing is that in order to succeed, a trader should be pretty much like a sniper. Having a winning strategy (which is like a rifle in a sniper’s hands) is not enough. You should know how to use it efficiently and be patient to wait for the right moment to take a shot and hit the target.
The AUD is quite a volatile currency. Over recent years it has fluctuated in value against the USD by as much as two thirds. However although it is volatile, the AUD/USD pair does tend to both trend and turn around quite smoothly, meaning this pair can be a real pleasure to trade. Both the USD and JPY have a large influence upon the value of AUD, and of course the currency has been highly correlated with the price of Gold.
EURUSD spent most of the trading day within the scope of the 1.2730-1.2839 range yesterday. While staying within the range, the common currency showed a little bit of weakness against its American counterpart. Over the course of yesterday’s American trading session, the common currency, the US Dollar strengthening was backed by positive employment figures coming from the US Department of Labor. At the same time, the NAR revealed strong data on the amount of secondary housing sales in the USA over the same reporting period. In particular, the sales growth improved from -1,8% up to 2,4% with a glance at seasonality. This allowed them to reach the highest value of the year at 5 170 000 housing units. The news was followed by a downswing to 1.2714.
Today, on October 22nd, the US Dollar lost a bit of its value against the Japanese Yen after Nikkei 225 showed some strength backed by strong economic data from Japan. However, the US currency is still strong after yesterday’s sales report on the US secondary housing market. These are the strongest figures in 2014.
The 10-year US bonds, USDJPY and S&P 500 managed to gain value at the end of last trading week, thereby forming reversal patterns. Even though, those patterns are indicating the likelihood of a reversal, confirmation is needed. This will happen only if all the 3 instruments close the current trading week in the green zone. If this is the case, we may well see a further rally in the market of USDJPY.