Bull Markets Missed

Several factors are affecting the high yielding euro right now, where with the heavy load of fundamentals and events the euro is not able to define the intraday trend so far. Meanwhile, the sentiment is still mixed as Greeks still cannot reach an agreement regarding the creation of a government, while Moody`s downgraded 26 Italian banks, yet positivity remains stronger as the euro-region didn’t slip into recession after posting steady GDP figures. Fears and tension eased in the market after growth data from Germany, France, Italy and finally the euro-area region, where GDP figures have beaten estimates in Germany and the euro zone, Stalled in France, yet missed estimates in Italy; however, the sentiment remained positive as the euro-area region skipped another phase of recession temporary. ...

Gold dropped to its lowest since late December as the euro sank against the U.S. dollar on worries that a worsening debt crisis in Greece could spill over into its neighbors and threaten the existence of the single currency. But lower bullion prices triggered a flurry of activity in the physical market, with purchases from jewelers in top consumer India and also Southeast Asia keeping premiums for gold bars steady at $1.20 to London prices in Singapore. Although euro zone finance ministers have dismissed talk of Greece leaving the euro zone as "propaganda and nonsense", they urged the debt-ridden country to respect the terms of the bailout program agreed with the EU and the International Monetary Fund. Gold was down $3.80 an ounce at $1,552.85 by 02:20 a.m. EDT (0620 GMT) after hitting ...

Dukascopy Fundamental Analysis EUR European stocks declined as company earnings missed estimates, talks on forming a Greek government entered a fifth day and JPMorgan Chase & Co. posted a $2 billion trading loss. Asian shares and U.S. futures fell. USD Wholesale prices in the U.S. fell in April for the first time in four months, led by a decline in fuel costs that signals inflation may cool. The producer price index dropped 0.2 percent after no change in March, Labor Department figures showed today in Washington. GBP Britons turned gloomier last month as a slump in construction pointed to an even deeper recession and producers ramped up prices, highlighting the long and difficult road back to economic health. CHF Swiss stocks fell for the seventh day, heading for the biggest weekly ...

www.sunbirdfx.com The ADP Non-Farm Employment Change significantly missed the analysts' expectations yesterday and this might suggest on the official NFP data on Friday. However, in spite the disappointing data, the US indices managed to close on mixed territory as they made long tails candlestick, which indicated for the strength of the buyers. The S&P 500 gets a strong support at 1395 points and as long as it stays above this level, it will have an upside. EUR/USD Before the most important data is published tomorrow, the investors will focus on the ECB press conference today, in which the interest rate level is expected to remain at 1.0%. We analyzed the pair on the beginning of the week and mentioned that it was moving in an uptrend channel and expected it to move between the support ...

Private sector jobs creation in the form of ADP report missed estimates of 170,000 to print a modest 119,000 gain, down from 201,000 in February. The figure is considered a good indication for the NFP number and thus weighs on investors’ expectations. The initial reaction has been risk negative so far, as the higher yielders are adding to their earlier losses against the greenback, while the JPY rallies. Anyhow, markets were already under downside pressure today after figures showed deepening contraction of the European manufacturing sector. The Risk-off mode is expected dominate the scenes over the short term eying tomorrows ECB rate decision and press conference, in addition to Friday’s NFP release. The EUR/USD has broken the main short term ascending trend line in addition to the ...

The European morning session has been fairly volatile for FX markets, with the euro starting off looking fairly well supported at 1.32 and then falling through the floor on the back of some weak Eurozone economic data. The first blow to the single currency came from Germany where it was reported that the unemployment rate jumped by 19,000 in April and the unemployment rate had been revised up to 6.8% from 6.7% for March, which is where it remained last month. This is the largest increase in German unemployment for three years. Although a German labour market official said the decline could be down to the timing of Easter, it was enough to spook the markets. Not such a two-speed economy? The other blow to hit the market was the fall in the German manufacturing PMI survey to 46.2, the ...

The sentiment deteriorated last week in European markets after the flow of downbeat fundamentals and events, which weighed sharply on the European common currency; however, the euro was able to extend the gains recorded a week earlier as growth data from the world's largest economy missed estimates, sending the U.S. dollar south and vice versa the euro and sterling pound to the upside. The downbeat growth data saved the week for the common currency, where the euro after hitting a low of 1.3156 on Friday rebounded sharply to the upside, despite the several bearish factors affecting the currency, where Spain was downgraded on Friday as well on downbeat growth projections, yet this reason was insufficient to grab the euro south as markets were focused on the U.S. GDP figures. However, we ...

Fundamental Analysis EUR Deutsche Bank, the German biggest lender posted a 33% drop in its first quarter profit, citing debt crisis as a negative force that curbed trading. Net income declined to EUR 1.38 billion (USD 1.82 billion) compared to EUR 2.06 billion in the same period last year. Economists questioned by Bloomberg expected the profit to decrease less to EUR 1.56 billion. Deutsche Bank shares have added 16% this year. USD Crude oil fluctuated close to a one-week record high as Fed claimed they expect the economic growth to advance, encouraging the speculation that fuel demand will increase. Moreover Iran announced it may stop its nuclear expansion. June crude traded at USD 104.07 a barrel after climbing USD 0.57 yesterday. Brent oil to be delivered in June traded at USD 119 a ...

The European stock markets are in recovery mode today as we wait for the Spanish bond auction at 0930BST to set the tone. This auctions will be closely watched as Madrid tries to sell long-term debt, however its significance should not be overplayed as the size of 2014 and 2022 debt that is scheduled to be auctioned is less than EUR3 billion, which should be easily sucked up by the market. 10-year yields have retreated from their highs of 6.1%, but they remain 80 basis points above their level a month ago. The key things for investors to watch out for are the yield and the bid-to –cover ratio. If Spain has to pay more to sell debt maturing in 2022 than what 10-year yields are currently pricing it could spook the markets causing risky assets to sell off. Likewise, if it can sell debt at ...