Forex Analysis: Risk Adverse Trading Rules, June 27th, 2011 [article from Articleranks]

Forex Analysis: Risk Adverse Trading Rules, June 27th, 2011

Market sentiment remains to be on a razor's edge as trading starts up this week. The advancements in the Greek debt saga carry on and result in anxiety as concerns in regards to a potential restructuring of obligations is rumored. The conversation that is being heard is that Greece is engaging in conversations concerning the chance of rolling over its debt, thus extending the payment terms where the bonds will be due to their creditors. Even though many have declared the price of a Greek default may be included into the EUR, the fact is that not all of the possible domino affects can be calculated. The EUR/USD continued to foster a risky ride prior to going into the weekend. Incredibly the pair has ostensibly maintained an extremely great trading range only if the final results are looked over. Quite simply for all of the volatility the EUR/USD continues to find a middle ground with the amount of inquiries about.

The partial reason behind the unwieldy balance is mainly because even while the European debt situation is still a festering sore, the U.S. economic data has been doing investors no favors. The Core Durable Goods quantity fell short of its estimate on Friday arriving with a result of 0.6%, losing the anticipated figure of 1.0%. Wall Street answered by completing with another decline and thus extending its losing streak to nearly two months. The level of extreme care being demonstrated through the broad markets is evident for all. The Usd has acquired ground not just against the EUR, but the Gbp and AUD also. Gold dropped below 1500.00 USD on Friday in fast trading. The speculative edge in the commodity markets has come upon a wall. Crude Oil is still under pressure and Grain prices have stumbled.

Today will be mild with data from Europe. The States will show Personal Spending quantities, but the impact from this report will be minimal. Tomorrow the GfK German Consumer Climate reading and the CB Consumer Confidence report from the States will be circulated. The influence of bad economic data from Europe, the U.K., and the States has led investors to think that at the very least a shrinkage of the recovery is underway, if not a recession. Global equities seem as if they will once again encounter a poor beginning of the week.

The Gbp will continue to find mounting pressure. The whispers from the Bank of England have brought investors to believe that the doves are in control of monetary policy. While the U.K. continues to mount austerity measures in the face of a challenging economic atmosphere it has shown very little desire to alter its interest rates. Tomorrow Final GDP figures arrive from the U.K. and Current Account data. On Friday the Manufacturing PMI will also be offered. The Gbp has been under a tremendous amount of pressure and requires to be supervised this week.
The AUD lost ground on Friday in the wake of faltering physical resource prices. It has also been reported that Australian banks have some contact with the Greek bond situation. The JPY dropped some value to the Usd on Friday. Asian equities are already within tremendous amount of poor sentiment like their counterparts.

This week will probably be a continuation of the past few weeks with most inspiration coming from the debt problems in Europe and the declining economic facts that the U.S. recently produced. The Greek government is scheduled to vote on austerity measures this week and this event will be widely talked about. The Forex markets have witnessed significant volatility with the amount of concerns still abounding and ranges will definitely continue to be tested.

tags:forex trading,commodities,gold