EU Morning Report – Greece gets 2-year extensionThursday, October 25th, 2012
The euro (EUR) is strengthening against most of its major counterparts, as reports claim Greece will get two years extension to meet its deficit targets. Yesterday, the European Central Bank (ECB) President Draghi met with German lawmakers in a closed-door discussion specifically regarding the Outright Monetary Transactions (OMT) bond buying program. In the press conference that followed he reiterated that the program will not cause inflation or weaken ECB’s independence.
§ The Canadian dollar (CAD) is still reacting to the decision by Bank of Canada (BoC) to leave its lending rate unchanged at 1.00%. Against the US dollar (USD), the loonie weakened to 0.9943 from 0.9926 yesterday, but looks strong again early in the EU session this morning.
§ OIL plunged to 84.93 – a fresh 3-month record low – but managed to bounce back and is now trading above 86.00 dollars barrel.
§ The British pound (GBP) rebounded off its monthly low at 1.5912 to 1.6028 versus the US dollar (USD) ahead of the release of the nation’s Gross Domestic Product (GDP).
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2945||LONG @ 1.2955||44% of deals buy EUR|
|.||USDJPY||79.65||LONG @ 79.65||59% of deals buy USD|
|.||GBPUSD||1.5985||LONG @ 1.5995||48% of deals buy GBP|
|.||AUDUSD||1.0325||LONG @ 1.0325||59% of deals buy AUD|
|.||GOLD||1714||SHORT @ 1714||71% of deals buy GOLD|
|.||OIL||87.50||SHORT @ 87.50||85% of deals buy OIL|
|.||GBP||08:30||GDP Preliminary for 3rd quarter||0.6%|
|.||USD||12:30||Durable Goods Orders in September||7.1%|
|.||USD||12:30||Initial Jobless Claims over past week||370 k|
The New Zealand dollar (NZD) recorded a higher high at 0.8234 versus the US dollar (USD) this morning and is currently holding onto it. The pair now lies around the 0.8230 support area. A continuation of the uptrend is likely but investors should be careful of the downside.
Written by Easy-Forex