Wall Street closed in green territory as Greece approved debt-reduction measures. The market has been rallying, in theory at least, on Greece getting financial aid and trying to work its way out of the debt rash that they’re in, but the string of gains has come without much participation behind it. The Dow Jones Industrial Average rose 72.73 points to 12,261.42. The S&P 500 Index climbed 10.74 points to 1,307.41, while the Nasdaq Composite Index gained 3.44 points to 2,740.49.
As reported by the Sydney Morning Herald: “Fast growth in China and India has bolstered demand for the Aussie dollar, the world’s fifth-most traded currency, which advanced 27 per cent in the past year The Australian Dollar has been picking up upside momentum, gaining more than 4 cents this week alone. AUD/USD bounced from 1.0390 to currently just break into new higher ground. Once resistance at 1.0715 was cleared in the last hour of trading, the pair soared to 1.0740. The Aussie also hit its highest against the Pound since early 1985.
The euro is up versus the dollar and in the crosses as this week’s recovery continues. Protesters are clashing with police in the streets of Athens but the main event remains inside the Greek parliament where the vote for the medium-term fiscal strategy will take place. With the euro climbing to its highest level in a week and the FTSE 100 up by 1.50%, markets fully expect the legislation to pass, if only by a narrow margin. The euro looks to move higher on a successful vote but this would by no means leave the euro out of the woods.
Today’s Important Economic Announcements (GMT)
6:00 AM EUR German Retail Sales m/m
6:00 AM GBP Nationwide HPI m/m
7:00 AM EUR ECB President Trichet Speaks
8:00 AM EUR M3 Money Supply y/y
8:30 AM GBP BOE Credit Conditions Survey
Tentative EUR Greek Gov Debt Crisis Vote
12:30 PM CAD GDP m/m
12:30 PM USD Unemployment Claims
2:30 PM Natural Gas Natural Gas Storage
Forex & Commodities Technical Analysis
EUR/USD
The Euro surged for a fourth consecutive day in Asia, printing new highs at 1.4513, as hopes are growing that Greece will be able to avoid an immediate default. During Wednesday’s session, as the Greek vote was proceeding, euro was sold-off, although it looks like an innocent attempt to shake out weak longs. The bulls quickly regained the upside. It is interesting to note that there is renewed discussion of inflationary pressures in Germany while the Greek parliament is voting on further austerity measures. In our opinion there is no doubt the EUR is heading higher!
Stop Loss: 1.4437
Take Profit: 1.4510
GBP/USD
Sterling is slightly higher against the dollar, but is lower against all of its other major counterparts after a government report showed UK mortgage approvals remained near a four-month low. An index of house prices due for release this evening is expected to show no growth last month, extending the annual decline to 1.3%. With the British economy already lagging, continued weakness in the housing sector will likely add to investors’ expectations that the BoE’s policies will remain accommodative for the foreseeable future. Looks like this pair is pointing northbound and we could reach as high as 1.6125.
Stop Loss: 1.6044
Take Profit: 1.6125
USD/JPY
The JPY gained sharply this morning, erasing yesterday’s losses as investors remain jittery over the developments in Greece. However, with recent reports showing that Japanese exports fell in May, it’s questionable as to how long its “safe haven” status, which has been based upon the government’s ability to borrow cheaply despite massive debt, will persist. In the near term, rising market volatility will keep the yen well supported as a relatively stable and safe investment. Further down movement is expected in the next 24 hours.
Stop Loss: 80.46
Take Profit: 80.144
Published by www.SolidityBrokers.com
