Wall Street closed higher Monday as many stocks rallied and concerns over Greece’s debt crisis eased.
The Dow Jones Industrial Average gained 76.02 points to close at 12,080.83. The S&P 500 Index advanced 6.86 points to close at 1,278.36 while the Nasdaq Composite Index was up 13.18 points to 2,629.66. The dollar turned lower against the euro , with analysts citing some hope from the few details emerging from a weekend summit of EU officials.Earlier in the day, U.S. markets declined along with their European counterparts, which finished lower on the day, after euro-zone finance ministers delayed a decision to provide further aid for Greece.
Analysts, on the other hand, interpreted that more as a posturing move than any credible threat that Europe will abandon Greece. That provided a backdrop for some bargain hunting which pushed Wall Street into green territory.
Crude-oil futures extended gains in electronic trading Tuesday, as some relative optimism about Greece’s debt-situation and a softer dollar helped support prices. Oil for July delivery added 34 cents to $93.60 a barrel on the New York Mercantile Exchange during Asian trading hours. Oil markets have been monitoring the euro-zone’s sovereign-debt situation and the implications the unfolding crisis have for global energy demand.
Today’s Important Economic Announcements (GMT)
8:10 AM GBP MPC Member Fisher Speaks
8:30 AM GBP Public Sector Net Borrowing
9:00 AM EUR German ZEW Economic Sentiment
10:00 AM GBP CBI Industrial Order Expectations
12:30 PM CAD Core Retail Sales m/m
2:00 PM USD Existing Home Sales
5:00 PM CHF SNB Chairman Hildebrand Speaks
10:45 PM NZD Current Account
Forex & Commodities Technical Analysis
Crude Oil
Crude prices were buoyed by the European finance ministers decision to delay providing more bailout funds to debt-stricken Greece. This is sort of a relief for global commodities markets, and is supporting crude prices. Later today, Greece will debate on confidence. If the confidence vote is passed to push through the budget cuts, there will be additional loans granted in July, and a default scenario is likely to be avoided. For the commodities market, it means demand could also be sustainable, and it signals the global recovery is on track. Our target is set at $95.70
Stop Loss: 92.75
Take Profit: 95.70
USD/CAD
This pair continues to struggle with the stubborn resistance level of 0.9830 and still hasn’t beaten it. The negative sentiments in the markets cause a strengthening of the greenback and place pressure on the pair upwards. If the pair closes today, or for that matter, any other day during the week, above the test level of 0.9837, we should immediately leave a position as, in such an event, the pair will try to move in towards 0.9900 and perhaps even higher to the equivalence psychological level of 1.000.Yesterday’s downtrend is expected to reverse, and we are likely to head back up.
Stop Loss: 0.9766
Take Profit: 0.9837
AUD/USD
What really changed in the RBA’s tone that the Australian dollar would drop nearly 70 pips against the greenback after the release of the central bank’s minutes? A few highlights from the release include suggestions that it was “prudent” to keep rates steady and the suggestion that no-resource areas of the economy were “subdued.” None of this is surprising though; nor relevant. This has more foundation in risk than rates. The bounce from 1.0477 is treated as consolidation of downtrend. As long as the channel resistance holds, downtrend could be expected to resume, and another fall to re-test 1.0440 is possible.
Stop Loss: 1.0610
Take Profit: 1.0500
Published by www.SolidityBrokers.com
