EU Morning Report – Merkel visit to Athens as expected
Wednesday, October 10th, 2012The euro (EUR) is weakening against most of its major counterparts, following the German Chancellor Merkel visit to Greece. She did not surprise the markets and during her meeting with Greek Prime Minister Samaras, she voiced her support for the structural reforms the debt-ridden nation is implementing but reiterated she will wait for the Troika’s report before making her decision. On Monday, the German Finance Minster Schaeuble said that Spain does not need financial aid, increasing the confusion among market participants regarding the Spanish bailout. European Central Bank (ECB) Executive Board member and Vice President Constancio shared his view that the Outright Monetary Transactions (OMT) program will help distressed nations improve their debt ratios. Today, the Spanish Prime Minister Rajoy is due to meet French President Hollande.
§ Gold (XAU) fell from 1777.45 to 1762.70 US dollars (USD) an ounce.
§ Oil rebounded to 91.87 from 89.96 dollars a barrel. Nevertheless, the overall price action still remains bearish.
§ The British pound (GBP) fell for a second day against the US dollar (USD) from 1.6030 to 1.5994. The break below 1.60 is expected to pave the way for lower lows.
Stay in tune throughout the day with foreign exchange bullets!
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| Outlook | . | Pivot | Preference1 | Sentiment2 |
| . | EURUSD | 1.2935 | SHORT @ 1.2935 | 37% of deals buy EUR |
| . | USDJPY | 78.45 | SHORT @ 78.45 | 97% of deals buy USD |
| . | GBPUSD | 1.6050 | SHORT @ 1.6040 | 33% of deals buy GBP |
| . | AUDUSD | 1.0180 | LONG @ 1.0180 | 38% of deals buy AUD |
| . | GOLD | 1771 | SHORT @ 1771 | 66% of deals buy GOLD |
| . | OIL | 91.00 | SHORT @ 91.00 | 51% of deals buy OIL |
1 data generated by Trading Central™, 2 data obtained from easy-forex Inside Viewer™
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| Calendar | Currency | Time (GMT) | Event | Forecast |
| . | EUR | 06:00 | German Whosale Price Index m/m in September | 0.5% |
| . | USD | 14:00 | Wholesale Inventories in August | 0.5% |
| . | - | - | - | - |
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AUDCAD |
The US dollar (USD) has been strengthening versus the Swedish krona (SEK) over the past few days and managed to break through a previous major resistance area around 6.6900. This breakout is a bullish signal and even though a minor retracement is likely, higher highs should be expected.
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