EU Morning Report - ESM downgraded but EUR still strong
By NikolasX | December 3, 2012 7:56 PM EST
The euro (EUR) is rising against most of its major counterparts, even as Moody’s cut the AAA rating of the European Stability Mechanism (ESM). Early in the Asian session, China released a slightly stronger manufacturing PMI confirming that the nation is continuing its recovery. There has been no breakthrough regarding the “fiscal cliff” situation in the US and every day spent without any development is going to hurt market sentiment more and more.
§ This has traditionally been a strong month for equities as shown by the S&P 500 (tracked by the US 500 (SPI) rising 16 times in the past 20 years during the month of December.
§ The euro (EUR) is again trading above 1.30 against the US dollar (USD). This is the 5th time the single currency is trying this move in the past 7 trading days, and this time it has recorded a higher high at 1.3046.
§ OIL rebounded off its 87.00 US dollars (USD) a barrel support level and now trades just below the 89.00 figure. A break above that level could pave the way for higher highs.
§ The US dollar (USD) is falling against the Japanese yen (JPY) and the pair now lies just above the 82.00 psychological level. It will be interesting to see whether the greenback will pull a rebound.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2990||LONG @ 1.2990||31% of deals buy EUR|
|.||USDJPY||81.90||LONG @ 81.90||32% of deals buy USD|
|.||GBPUSD||1.6015||LONG @ 1.6025||34% of deals buy GBP|
|.||AUDUSD||1.0425||SHORT @ 1.0425||47% of deals buy AUD|
|.||GOLD||1703||LONG @ 1703||67% of deals buy GOLD|
|.||OIL||87.65||LONG @ 87.65||41% of deals buy OIL|
|.||EUR||08:53||German PMI Manufacturing in November||46.8|
|.||GBP||09:28||PMI Manufacturing in November||48|
|.||USD||15:00||ISM Manufacturing in November||51.2|
The euro (EUR) has pierced above the 1.2500 resistance area against the Australian dollar (AUD) early in the Asian session as the markets open following the weekend break. This previous resistance is expected to now act as a support and an excellent risk/reward entry point for long positions.
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Pope Francis Meets Sudanese Woman Who Was Spared Death for Apostasy (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Typhoon Matmo Leaves 32k Customers w/o Electricity in Taiwan, Weakens After Landing in China
Join the Conversation
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- HTC One E8 (Plastic Variant of HTC One M8) with 5-Inch Display, Dual-SIM, 801 Processor and 2 GB RAM to Hit New Markets Soon
- iPhone 6 Release Date in September 26 with Price Details and More Killer Features
- Apple iPad Mini Air: Three Fresh Features on the Smart Tablet to Wait for
- 4.7-Inch iPhone 6 Release Date is Sept 26 after iOS 8 GM Public Debut on Sept 17 – Reports