Directional Indicators Are Showing

Sunrise Market Commentary - Fixed Income: Global core bonds take a breather - Investors remained mostly sidelined in an uneventful session on Friday. The G-8 meeting stressed the need for growth, besides fiscal consolidation and sees Greece staying inside EMU. This shouldn’t surprise markets today. With a razor thin calendar, trading might start the week in a lackluster mode. - Currencies: Euro succeeds short squeeze - On Friday, the decline of the euro halted and EUR/USD succeeded a cautious rebound, even as uncertainty on the EMU debt crisis persisted. Technical considerations will also dominate trading today as the G8 meeting provided no high profile measures to address the debt crisis. The Sunrise Headlines - US Equities rose for a second consecutive session on ...

www.sunbirdfx.com The US stock markets opened the trading week in the red territory as the indices shed 0.10%. The hesitated opening for the trading week might indicate that the investors are getting prepared to the expected correction, though the stock might make another bullish session before the correction. GOLD The precious metal made an impressive rally since the beginning of the year and it looks like it became attractive again among the investors after rough fourth quarter in 2011. The price reached the resistance at $1760 and stochastic levels, which have been high for several weeks, indicate that the correction might occur any day. However, it would not be wise to try to guess when or where the correction starts and any trade against the bullish trend would be a gamble. ...

Weekly Economic and Financial Commentary : 10/12/2011 U.S. Review Good From Far, but Far From Good A run of better-than-expected U.S. economic data in recent weeks raises hopes that the domestic economy might somehow defy gravity and expand quickly, even as the rest of the world seems to be coming to terms with an environment of slower growth. At the risk of ruining the party, in this week’s U.S. Review, we point out what we consider to be a few chinks in the armor. The ISM Non-Manufacturing Index shows continued expansion, albeit at a slower pace. The trade deficit narrowed in October to its lowest level of the year, supporting fourth-quarter GDP growth. Lookin’ Good, Just Don’t Look Too Close Over the past several weeks we have seen flare-ups in the sovereign debt crisis ...

www.sunbirdfx.com Wall Street closed yesterday on mixed territories, as it tends to do during the results season. JP Morgan released disappointing reports and pulled the financial sector down. Google slightly rose and helped NASDAQ closing on the green territory, just below the resistance at 2340 points. EUR/USD The Euro broke the strong resistance it had at 1.37 and it is now dealing with the sellers at 1.38. The inverted "Head & Shoulders" pattern appears on the 4h chart under 1.385. The European currency got over the obstacle of the 200 SMA and if it breaks through 1.385, it might jump to 1.40. However, this pair might be volatile these days if Wall Street will get jumpy because of the results season. The 20 SMA is supporting the Euro along the uptrend and if the Euro breaks it down ...

www.sunbirdfx.com The panic is back to the financial markets in full power. Wall Street fell 4% yesterday on the background of concerns from Europe. Investors seem to lose their faith in Bernanke, as his new plan for saving the economy did not impress them. It looks like nothing can prevent the S&P 500 from breaking-down the important support at 1100 points, which will trigger many automatic orders that might increase the intensity of the declines. The next significant support would be at 1000 points, which the index did not visit since mid 2009. GOLD When markets are shaking the ways they are these days, investors tend to run for the precious metal. However, like many other commodities, the gold suffered from the negative atmosphere in the markets and shed 2.5% yesterday. The double- ...

Forex News and Events: FX markets have been shocked into a standstill, as event risk-laden news flow halted true directional price action. S&P announced that they were putting the US`s cherished 'AAA/A-1+' rating on creditwatch negative. S&P stated that further delays on debt talk could cause “at least a one-in-two likelihood that we could lower the long-term rating on the U.S. within the next 90 days". In addition, they stated that if the US government missed a debt payment, it could then be lowered to “selective default”. Obviously, following Moody’s earlier adjustment, this triggered minor USD selling but surprisingly generated little follow-through. Perhaps the greenback salvation was the erosion in risk appetite, which pulled regional equity markets and commodities lower. With the ...

www.sunbirdfx.com EUR/USD The Euro made the correction as sunbird's chief analyst expected. It reached the 38% of Fibonacci levels and stopped by the 20 EMA at 1.44. The correction might not be over yet and the Euro might continue correcting down to the 50% level at 1.435. A correction in the US stock markets will probably support the USD and cause declines in the EUR. Investors are waiting for Trichet's press conference on Thursday before they make further actions. USD/CHF The powerful currency of the CHF is showing signs that it is about to make a reversal down. The Swiss has failed to break-down at 83.0 and corrected up since then. It set a new high at 84.0, lower than the previous high at 85.3 and it is the first sign for a possible reversal. The second signal is the fact that the ...

(Reuters) - Europe's sovereign debt crisis will still hang over global markets next week, but on Wall Street, investors will not be afraid to bet on stocks. Wall Street has shown its ability to hold onto gains, or quickly recover from losses this week despite Europe's debt woes, suggesting that investors are confident of a sustained rally. "When things don't fall apart on bad news, you know that the market is no longer vulnerable. The overall sentiment is pretty solid," said Randy Frederick, director of trading and derivatives at Schwab Center for Financial Research in Austin, Texas. The outstanding put-to-call ratio on index options, heavily focused on the S&P 500 benchmark, dropped from 1.32 last week to 1.29, showing bullish signs for next week. The ratio, which is always greater ...

The Euro fell broadly throughout the night following news that the Spanish government is planning to takeover a smaller savings bank due to a failed merger attempt. The EUR/USD, currently trading below the 1.2300 level, has fallen more than 100 pips since yesterday evening as one of the results. USD - Dollar Receives Boost Following Existing Home Sales Report While last week saw the U.S Dollar drop against many of the other major currencies, the greenback appeared to be coming back strong after a solid housing report helped boost investor confidence. Monday's Existing Home Sales report led to major gains for the Dollar against its primary counterparts. The report, which came in well above expectations, revealed that home sales increased for the second straight month. As a result, the ...