EU Morning Report – Market sentiment favors risky assetsWednesday, October 17th, 2012
The euro (EUR) has been strengthening against most of its major counterparts, as market participants risk appetite favours the single currency. Moody’s upheld the Spanish rating at Baa3, one day ahead of the EU Summit. The eurozone heads of state are due to meet on Thursday and Friday. The meeting’s agenda is expected to include the ongoing negotiations with Greece, the Spanish situation and discussions on stronger monetary integration.
§ The euro (EUR) has advanced against the US dollar (USD) from 1.2900 – Monday’s opening, to 1.3123, yesterday’s high. The pair met apparent selling pressure and could not hold above 1.31 overnight, but the trend remains bullish.
§ The Australian dollar (AUD) is still rising versus most of its counterparts, following yesterday’s release of the minutes from Reserve Bank of Australia (RBA) latest meeting, that pointed out interest rates are set to drop as the nation’s central bank warned a deceleration in the crucial mining industry has lowered the outlook for growth in the coming year.
§ Silver (XAG) dropped versus the US dollar (USD) from 33.1271 to 32.6834 an ounce.
§ OIL rose versus the US dollar (USD) from 91.05 to 91.70, having first recorded a low at 89.78.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.3040||LONG @ 1.3050||34% of deals buy EUR|
|.||USDJPY||78.60||LONG @ 78.60||76% of deals buy USD|
|.||GBPUSD||1.6090||LONG @ 1.6100||36% of deals buy GBP|
|.||AUDUSD||1.0280||LONG @ 1.0280||57% of deals buy AUD|
|.||GOLD||1738||LONG @ 1738||56% of deals buy GOLD|
|.||OIL||91.40||LONG @ 91.40||41% of deals buy OIL|
|.||GBP||08:30||Monetary Policy Committee (MPC)Vote||0-9-0|
|.||USD||12:30||House Starts in September||-15|
|.||OIL||14:30||Crude Oil Inventories||1.4mil|
The euro (EUR) produced a spectacular advance versus the Canadian dollar (CAD) breaking through the 1.28 resistance area, and even carrying on up to 1.29. The trend is bullish but a minor retracement is likely. Market participants looking to maximize their risk/reward potential should be looking for a lower entry point to a long position.
Written by Easy-Forex