Bearishness In The Market That

The tension is gripping markets still with the uncertainty over the stability in Europe and expectations for a Greek euro exit. The common currency is still trading sharply lower as hope dims ahead of the informal EU summit in Brussels today, where previous hopes for any action evaporated as Germany confirmed that its stance did not drastically change! Investors are still pushing the euro lower amid fear that Greece might be forced to default and exit the euro after the inclusive May 06 elections confirmed the wide rejection to the deep austerity measures. The market still sees high risks that the June 17 election might bring anti-austerity parties into the lead that will opt against austerity and refuse the bailout terms as Syriza did and that will cost Greece its membership. Investors ...

Taking a general look at markets before the end of this week, we can see that the bearishness started to lose momentum as traders are speculating now what tools Central Banks might provide to revive the slowing pace of recovery, especially the European Central Bank amid the current political instability in Greece, the confirmed recession in Spain and Italy and the deepening debt crisis. Moreover, investors are still worried and concerned regarding the general trend in markets, where after the Federal Reserve reassured that a slowing recovery in the U.S. might trigger another round of quantitative easing, volatility dominated markets as predicting the coming moves became highly uncertain as Politicians failed to calm markets and the fueled debt crisis, leaving policymakers with a difficult ...

The tension is evident and the market remains negative amid the uncertainty over the euro outlook and growing fear of a Greek exit. The selloff was reignited midday yesterday after Greece said talks have failed and elections are now the only option. Investors are worried that anti-austerity parties will be able to now win the vote and negate the agreement with lenders which will leave Greece insolvent and bankrupt, and eventually drop out of the euro! This tension is keeping the market on the edge and pressured stocks to their 2012 lows with the lead of financials of course. The euro was surely on the receiving end and still trading under heavy bearish pressure. The EUR/USD as of 03:00 EST is hovering around $1.2695 trading below the critical $1.27 areas. The pair recorded the high of $1. ...

Crude oil has started the week with negativity to proceed with the sharp downside wave amid intensifying fears in Europe with increasing anticipations that Greece would exit the Euro bloc. The euro outlook is under scrutiny and eyes are on what the finance ministers will discuss today. More downside pressure stemmed from the Saudi Arabia oil minister as he reiterated that supply is still high, keeping the bearish bias intact. Oil dropped from the opening at $ The two main factors behind this strong downside pressure on crude remain evident, as the political situation in Europe continued to deteriorate after the political parties in Greece failed to form a coalition government for the third time and the anti-austerity parties found more support in the parliament. The biggest anti- ...

Following multiple failures by Greek politicians to form a new government, investors are now concerned about what impact a possible new election will have on Greece's status in the euro-zone. The news weighed down on riskier currencies, particularly the euro, throughout Friday's trading session. The EUR/USD dropped to a fresh 3 ½ month low at 1.2903 before staging a slight correction to close out the week at 1.2917. Turning to this week, euro-zone news is once again forecasted to dictate the direction the market takes. Any additional negative announcements out of Greece could drive the euro even lower against its main currency rivals. Economic News USD - US Consumer Sentiment Gives Dollar a Boost vs. JPY News that consumer sentiment in the US reached a more than four-year high gave the ...

The U.S. economy created 115,000 new jobs in April, below market consensus of around 170,000 and the last month’s revised up reading of 154,000. Meanwhile, unemployment rate ticked lower to 8.1% from 8.2% on a declining labor force of nearly 350,000 workers. Earnings dropped as well, printing zero percent growth. The figures all indicate a sluggish employment recovery, hinting the economy is still far from normal employment levels of pre-crisis times. Thus, we may see further pressure on the U.S. dollar as QE3 expectations could build up. The EUR/USD pair has been trading in narrow range since morning and before the NFP, however the pair is currently attempting to regain upside momentum on a weaker dollar, a retest of 1.3175 resistance is possible now, and a break above could lead to 1. ...

The Reserve Bank of Australia shocked markets with a 50bps rate cut this morning, the bank cut interet rate from 4.25% to 3.75% while markets were expecting an imminent cut of 25bps. Australia’s slowing economy and headache coming overseas from Europe in addition to the slowdown in its major trade partner China were the main reasons behind the aggressive move. Thus, we have seen the Australian and Newzealand dollar under pressure today. While most European markets were off for Labor day, the euro was well bid as the common currency bottomed at the support area and the 50-days SMA around 1.3220, to resume the bullish bias retesting areas near 1.3300 again, however 1.3300 seen the next important pivot for the pair over the short term. Above 1.3300 the door could be open towards March high ...

The week started with a flow of negative charges starting from downbeat data from China, elections in France showed anti-fiscal pact Mr. Hollande win the first round, followed by a deeper contraction in Euro’s manufacturing and services sectors. Markets were unpleasant; where risky assets took a harsh hit, looked powerless awaiting a helping hand, which may find in the awaited FED meeting Wednesday. With the lack of economic releases this afternoon, the negative sentiment is expected to continue dominating the scene. The EUR/USD pair fell sharply after completing a test of the 50-days SMA, where the overall ranging stance remains intact so far. The pair has formed a possible bearish pattern, thus we look for a retest of the major psychological support at 1.3000, which is the main barrier ...

As this week comes to an end today, markets will be focused on inflation data from across the globe, where Germany, the United Kingdom and the world's largest economy are to release inflation-linked data, which most probably eased in March due to the global slowdown and growth concerns across Europe and the whole world itself. As we all know, an ease in inflationary pressures will weaken the European common currency, and in result, in case the indexes came in line with expectations, the euro might cut the gains recorded yesterday against the U.S. dollar, noting that the currency surged yesterday after Fed's Dudley renewed fears regarding the recovery in the U.S. and opened the door for a third round of quantitative easing. The President of New York Federal Reserve Bank, William Dudley, ...