Yesterday’s trading session gladden volatility buyers.
After breaking below 1.5911 (an option barrier) GBPUSD tested the secondary level of support at 1.5824. The volatility level was above average.
As expected, the news background offered major players a bunch of opportunities to analyze the current and future economic situation in the world.
The USA and UK’s Trade Balance reports came out much worse than expected while the report from Canada showed an increase. The British price indexes stabilized, except the HPI, which dropped by 1.6%.
In general, the negative sentiment in the markets is being created by the EU debt crisis, negative stats on the U.S. labor market and the U.S. public debt problem.
Shortly after the Greek problem was solved there emerged another “sick” EU economy - Italy. Consequently, the growth of stock indexes seen after the solution was hindered by some of the world’s leading bankers. Through their speeches they managed to make stock and commodity markets decline and scared away major market players.
Today’s news background can be called mildly rich in significant news. Special attention should be paid to the UK employment news block, the eurozone’s industrial production and Fed Res Chairman Bernanke’s speech. The data on the U.S. crude oil inventories will be secondary.
The key levels of support/resistance are 1.5721/1.5911.
Provided by the Department of Options,
