June 18, 2012 05: 01 GMT
Produce results electoral Greek favourable reaction of risk Pro party rescue won election rest technical image guiding light during the meeting of the g-20 to inspire likely volatility fresh reports of official plan of the European Union to combat the crisis even if the eurozone is out of wood, the reaction of the initial election of Greek market was net positive as the worst scenarios of imminent Greek exit from the Euro are priced out. There is still much speculation and expectation that a Grexit is unavoidable, the new who won part of the rescue pro plan, is certainly a little reassuring to global risk appetite.
Technically, the highest move falls directly under our projections, where we have been call for the additional force in the Euro area to area 1.2800 - 1.3000 before the next summit less than medium-term will be finally sought prior to the resumption of underlying bear trend. Right now, the election results help catalyze this last technique to the momentum and attention CIMI will move today and tomorrow the G20 meeting, and reactions to the election of Greece and the impact on the Italian and Spanish bond spreads.
See also helps support a bit of risk were the UK Telegraph and New York times articles which report of an official EU plan on the horizon that will help it to address the many problems of the region. One of the main critical of eurozone crisis was a lack of leadership and staff is indeed capable of producing an official plan, it will be well received.
At this stage, it also appears that the decline of the Euro that we saw in the previous weeks below 1.2300 perhaps on a waitlist for a scenario of the worst Greece in the peripheral countries of the euro area. Thus, the rally that followed continues to be the price of this risk of disadvantage. What this means, is that we do are in no way advocating a sustainable risk on the business environment, and that once the price is the worst in the Greek elections released, we could very well see some risks renewed commerce. Today, we believe that it is always better to remain marginalized, at least at the start of the day.
ECONOMIC CALENDAR
TECHNICAL OUTLOOK
EUR/USD: the market is in train to correct certain levels violently oversold after the breakdown of yearly lows little less 1.2300. While our global perspective is clearly bearish, here we find yet place upside in the short term before a low high fee is requested. Locate the last positive weekly open the door for an acceleration in the region of 1.2800 - 1.3000, where new offers are likely to re-emerge. Reverse must be well supported to 1.2400.
USD/JPY: the recent setbacks have been rather intense, with the market to collapse by the SMA 200 days before finally finding support by 77.65. We have since seen attempts at recovery and we argue that the market should continue to break higher, with views finally fixed on a retest and rupture of 2012 senior by calendering until more. However, at this stage, we will have to see a break and closing back above 80.00 to alleviate the pressures weighing officially and to reaffirm the optimistic Outlook.
GBP/USD: Daily studies are now correct oversold and risk CIHI seem inclined backwards to allow necessary short-term a corrective rebound after the setback down just shy of 2012 January low. Look for additional benefits to 1.5800 - 1.6000 from which an up, down, more significant is sought before bearish resumption.
USD/CHF: while we retain a more optimistic perspective for this pair, with the market seen to establish above parity in the coming weeks, short term risks are since more than a corrective retreat to allow the market to establish a fresh plu bass. Thus, we see the risks of weakness in the next sessions to 0.9200 - 0.9300 area before market seeks to reaffirm its bullish momentum and broader uptrend.
Produce results electoral Greek favourable reaction of risk Pro party rescue won election rest technical image guiding light during the meeting of the g-20 to inspire likely volatility fresh reports of official plan of the European Union to combat the crisis even if the eurozone is out of wood, the reaction of the initial election of Greek market was net positive as the worst scenarios of imminent Greek exit from the Euro are priced out. There is still much speculation and expectation that a Grexit is unavoidable, the new who won part of the rescue pro plan, is certainly a little reassuring to global risk appetite.
Technically, the highest move falls directly under our projections, where we have been call for the additional force in the Euro area to area 1.2800 - 1.3000 before the next summit less than medium-term will be finally sought prior to the resumption of underlying bear trend. Right now, the election results help catalyze this last technique to the momentum and attention CIMI will move today and tomorrow the G20 meeting, and reactions to the election of Greece and the impact on the Italian and Spanish bond spreads.
See also helps support a bit of risk were the UK Telegraph and New York times articles which report of an official EU plan on the horizon that will help it to address the many problems of the region. One of the main critical of eurozone crisis was a lack of leadership and staff is indeed capable of producing an official plan, it will be well received.
At this stage, it also appears that the decline of the Euro that we saw in the previous weeks below 1.2300 perhaps on a waitlist for a scenario of the worst Greece in the peripheral countries of the euro area. Thus, the rally that followed continues to be the price of this risk of disadvantage. What this means, is that we do are in no way advocating a sustainable risk on the business environment, and that once the price is the worst in the Greek elections released, we could very well see some risks renewed commerce. Today, we believe that it is always better to remain marginalized, at least at the start of the day.
ECONOMIC CALENDAR
TECHNICAL OUTLOOKEUR/USD: the market is in train to correct certain levels violently oversold after the breakdown of yearly lows little less 1.2300. While our global perspective is clearly bearish, here we find yet place upside in the short term before a low high fee is requested. Locate the last positive weekly open the door for an acceleration in the region of 1.2800 - 1.3000, where new offers are likely to re-emerge. Reverse must be well supported to 1.2400.USD/JPY: the recent setbacks have been rather intense, with the market to collapse by the SMA 200 days before finally finding support by 77.65. We have since seen attempts at recovery and we argue that the market should continue to break higher, with views finally fixed on a retest and rupture of 2012 senior by calendering until more. However, at this stage, we will have to see a break and closing back above 80.00 to alleviate the pressures weighing officially and to reaffirm the optimistic Outlook. GBP/USD: Daily studies are now correct oversold and risk CIHI seem inclined backwards to allow necessary short-term a corrective rebound after the setback down just shy of 2012 January low. Look for additional benefits to 1.5800 - 1.6000 from which an up, down, more significant is sought before bearish resumption.
USD/CHF: while we retain a more optimistic perspective for this pair, with the market seen to establish above parity in the coming weeks, short term risks are since more than a corrective retreat to allow the market to establish a fresh plu bass. Thus, we see the risks of weakness in the next sessions to 0.9200 - 0.9300 area before market seeks to reaffirm its bullish momentum and broader uptrend.
Daily Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
Daily Chart - Created Using FXCM Marketscope 2.0
Weekend DevelopmentsECB Asmussen: Europe has done enough on firewall, IMF members should increase contributions ECB Asmussen: Spain is repairing market confidence Spanish PM Rajoy seen supported by regional leaders for more austerity PBoC/Chinese government increases CNY trading band to 1% per day US 1 Q earnings start next week, major financials reporting throughout week Concerns stemming from the European sovereign debt crisis extending into Spain continued to affect markets in early trading. As Spanish 5 year CDS, a measure of insurance costs against Spanish default, traded near its all-time high again, Spanish leaders are continuing to push through additional budget cuts to bring its debt down from 68.2% currently. Although market reaction is relatively muted due to the safeguard provided by the ECB's LTRO lending earlier this year, traders will continue to actively monitor the situation in Spain to gauge possible contagion effects. Spain is scheduled to sell 2014 and 2022 bonds on April 19th at 0830GMT.
-Data Bloomberg/Markit
-Data Bloomberg
-By David Liu, DailyFX Research
