Thursday, June 21, 2012
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and the fundamental news pushing market prices. We also place a few live trades using the Slumdog Forex trading system.
Tuesday, June 19, 2012
Over the weekend, Greece’s Pro-Bailout New Democracy Party claimed a very narrow victory over the Syriza Party, which removed fears of a potential Greek exit from the Eurozone and caused the euro to gap higher & rally briefly on investor confidence. However, the Greek inspired relief rally was short-lived due to disturbing news coming out of the Spanish Banking Sector & their bad loans, which caused the Spanish 10-Yr bond yield to break above the crucial 7.00% level. Since Spanish borrowing costs for 10-Yr paper are at an unsustainable level, this puts into question Spain's ability to fund itself. Unfortunately, this news caused the market to shift from being Greek focused, to now being Spain focused and prior optimism had quickly shifted to market uncertainty as we began to see the EUR/USD weaken, despite the hopeful outcome of the Greek election.
During today's webinar, we discussed the current price action for the EUR/USD pair and the reasons for the random & whippy nature of price for the euro instrument. Today's trading session had been marked by very thin & illiquid trading environment, which may continue until there is more clarity regarding Spain & the euro crisis as a whole. There were rumors about ECB intervention in the Spanish bond market & Middle Eastern Central Bank Buying of EUR/USD that kept the Euro propped after the disappointing German ZEW data, which slumped to a 14 year low at -16.9, much lower than the previous month’s value of 10.8.