A warm welcome from OnlineForex.com- the Online Forex Trading expert! We are all about the fundamentals here: it's our view that you need a clear understanding of all the trends going on in the markets before you start trading for the day, so that you can trade with the overall currency flow or at least know when you are trading against it. Remember to think about your time frame- are you trading hourly, daily, weekly or monthly forex trends? You get the picture. Take a view on the trend that matches your timeframe, while keeping an eye on the amount of volatility in the markets.Friday update…Yen dominates forex trading
It seems risk averse trading finally got to the Yen and pretty constant buying against the US dollar, GBP, EUR and AUD over the last 3 trading sessions.Even a better showing in the Greek polls for austerity backing parties has failed to halt it thus far.
Headlines
Greece.. New polls suggest a swing back to the older pro bailout parties.. Despite most parties favouring being in the Euro it seems a majority outside can see less chance of Greece remaining so.
Spain..Earlier yesterday reports( El Mundo Newspaper) of a €1 billion withdrawal of deposits, over the last week from( recently part nationalised) Bankia, , were denied. This came by way of an announcement from the Deputy Economy Minister. Bankia later commented that deposit levels in early May are have a substantial seasonal nature (Reuters)….Oh sure we all draw our summer spending money out in May. Pity those poor investors I say €3.55 early February to €1.17. low yesterday at one point.
Spain.. Rumours of immanent bank downgrades which seems nailed on. Spanish bond auction ok but at unsustainably high rates. Moody’s downgrades 4 Spanish regions.. Massive problems still for the regions, anyone’s guess what the total of unpaid bills is within those.
France..French Finance minister insists France will not approve fiscal contract as it stands…
Germany… seem to think they ( the French) will honour commitments…More isolated than ever will the Germans cave in? Pressure mounts on them from within and outside the EZ.
Equities…. Blood bath with US data not helping and a stronger Yen adding to woes of Asian markets… Europe too opens weaker again.
US.. Philadelphia Fed Survey –5.8 against +9.8 exp…. Helped knock US stock markets but for once little talk of QE3..but don’t you just know it will resurface.
US.. Initial jobless claims 370/- against 365/- exp
Forex.. Its been a breath-taking rally in the Yen … USD/JPY 79.25 EUR/JPY close to 100 and GBP/JPY 125… That might be the place for any volatility junkies. EUR/USD down to lows of 1.2640.. For some reason I still think 1.2600/1.2625 will hold for a while but could be wrong by lunchtime Friday. AUD/USD back to 98.30 and would still sell rallies there. Sterling has taken a real beating catching longs against the Yen and Euro.
Madness 1…Ex ECB president Trichet thinks European politicians should be given power to declare a sovereign state bankrupt and take over its fiscal policy… That’s how wars start Jean- Claude. Its why the politics of Europe managed to set this mess up in the first place.
Madness 2.. I must be too old, how an earth can Facebook sell at 100 times earnings…It might not be a bubble yet but boy if this one goes wrong then will look like the con of the century.
Gold… A 3% bounce from the lows as support at $ 1520 holds… Below 1500 and we could well se 1300.
Thank goodness its Friday eh. Greece continues to cause markets angst. However, Spain is where the real problems lie… If the Euro is to fall then it will be Spain that determines it. It looks like a re run of Ireland, only worse. The country (their tax payers) cannot afford to bail them out.. Surprises if they come will be bad news not good.
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