Analysis Eur/usd The Squeeze

www.sunbirdfx.com The bearish momentum in Wall Street continued last week as indices shed 4%-5% during the week. The sharp declines were expected from the technical analysis point of view, since the main indices broke significant support in their daily charts, which we have analyzed and marked as key levels. The S&P 500 broke the support at 1350 points and reached the target we set at 1300 points, mainly because of the collapse of the financial sector. The volumes are increasing, which means that the sellers are gaining power, in spite improving economic data and the optimism that spread with Facebook trading on Friday. The three main indices are close to the annual opening levels as NASDAQ's next support is at 2400 points. EUR/USD We have been mentioning the support at 1.30 as a ...

Sunrise Market Commentary - Fixed Income: Global core bonds profit from euro debt crisis - Concerns about Greece and Spain underpinned the ongoing rally of global core bonds. The German 10-year yield fell below 1.50%. Intra-EMU yield spreads versus Germany widened substantially. Today, the eco calendar is enticing. If no euro debt crisis news acts as a circuit breaker, the eco data may for once drive the price action. - Currencies: Speculation on Grexit continues to hammer the euro. - At the start of the new trading week, the Greek crisis remained the key factor for currency trading. With no visibility on the outcome of the EMU crisis, the easiest way for the euro is south. EUR/USD set a new correction low. EUR/GBP dropped below the 0.8000. This morning, strong German ...

Fundamental Analysis EUR "Technically, easier monetary policy conditions should be currency negative." - Jane Foley, analyst at Rabobank The European Central Bank held key rate at 1 per cent on Thursday and told it expects a gradual economic recovery this year. USD "Labor market conditions have improved in recent months." - Federal Open Market Committee The number of Americans claiming for unemployment benefits tumbled to 365,000 in the week ended April 28 from 392,000 the week before, said the Department of Labor on Thursday. GBP "The service sector started the second quarter on a weaker note than in the first quarter, but continued to grow at a reasonable pace." - Chris Williamson, chief economist at Markit U.K. service sector growth slowed in April, Markit Economics data showed on ...

Fundamental Analysis EUR "Market stresses will eventually force the ECB to restart the bond program" - Market stresses will eventually force the ECB to restart the bond program The European Central Bank is expected to restart government bond purchases rather than proceed with another round of long term refinancing operation. USD "Disposable incomes of consumers are still being squeezed. That does make it difficult for consumption to accelerate from here" - Jeremy Lawson, an economist at BNP Paribas in New York U.S. consumer confidence deteriorated slightly in April. The Thomson Reuters/University of Michigan’s preliminary index of sentiment declined to 75.7 from 76.2 in March. GBP U.K. "has a wealthy, open, and diversified economy" - S&P Standard & Poor's reaffirmed the U.K.'s triple ...

Fundamental Analysis EUR "We expect the Greeks to rise to their responsibilities. This coming Monday, we will see whether Greece delivers or whether we will be forced to decide on another course of action, one that is not desired" - Steffen Kampeter, German Deputy Finance Minister The Euro rose against the US dollar and the Yen on Friday on hopes Greece was nearing a deal to secure a new rescue package despite rising worries about the ability of Greek leaders to rule the debt crisis. USD "We are seeing upward momentum in prices of food and other commodities that producers can’t pass along to consumers because consumers are still very fragile" - Lindsey Piegza, an economist at FTN Financial The Consumer Price Index (CPI) climbed 0.2% in January slightly below analyst median forecasts of ...

www.sunbirdfx.com The low volatility in the US stock markets continued yesterday and will probably remain narrow until the FOMC rate statement on the second part of today's trading session. The interest level is expected to be unchanged, but the investors will hope to find out about new plans for creating new jobs. The interest rate in New Zealand is published today as well. EUR/USD Greece is close to get the final agreement on the haircut of the private sector's debts, and with the positive atmosphere in the stock markets in both US & Europe, the Euro is continuing its recovering that started last week, when the pair broke-out the downtrend channel. The "short-squeeze" is strong as we estimated and the Euro easily crossed the first target at 1.30 on its way to 1.31. A break-up of this ...

www.sunbirdfx.com The US stock markets opened the first day of the trading-week with strong risings but the expected realizations pulled the stocks down. Many investors and analysts are looking for an aggressive correction, which might start if the main indices slide under yesterday's low. However, this is the results season, which means that surprising reports can bit any technical analysis that says that the markets are overbought, and we might see the stocks keep risings. USD/CAD The pair has changed its direction several times in the past 3 months. Unlike the other currencies, the CAD stood up against the strong momentum of the USD and it managed to correct after each rally of the USD. The simultaneous pressure of both buyers and sellers created an accurate triangle pattern in the ...

Fundamental Analysis EUR "Spain is showing the market there’s ample demand for their paper" - Padhraic Garvey, head of developed markets debt strategy at ING Bank NV France and Spain, both downgraded by Standard & Poor’s last week, paid lower borrowing costs on Thursday, compared to their previous auctions, a sign the ECB’s refinancing operation alleviated market concern over the Europe’s debt crisis. USD "You’ve got a gradual improvement in the labor market" - Brian Jones, a senior U.S. economist at Societe Generale The number of Americans claiming for unemployment benefits dropped by 50,000 to 352,000 in the week ended January 14, the lowest level in nearly four years, said the Department of Labor on Thursday. GBP "Right to the end, 2011 was an extremely tough year for UK consumers" ...

www.sunbirdfx.com The US stock market opened the trading week with a bullish momentum, in spite the weakness of the financial sector, which caused by Citigroup's reports that missed analysts' expectations. The stock fell 8% by the end of the day. The S&P 500 rose tried to break-through the resistance of the round number 1300 points but turned over after a false-break. However, if today's reports of Goldman Sachs bit Wall Street estimations, the S&P might try to break-through 1300 points again. GBP/USD The risings in Wall Street helped the GBP to rise until the middle of the day but eventually it resumed falling against the USD on the second half of the day. Today is published the Claimant Count Change data, which will give indication regarding the employment situation in Britain. Last ...