Daily review 01/05/12


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Wall Street closed yesterday (Monday) in prices decrease, after several disappointing macro data released yesterday.

Private income data pleasantly surprised but on the other hand private spending data, that are more significant, were disappointing.

Later that day, the published data for the Chicago PMI showed decrease to a low of 29 months.

From Europe, Spain adversely affected, as investors fear the spread of the debt crisis due to lowering the state and the banks rating.

Spain was in the spotlight in Europe yesterday after the National Statistics Office released the GDP data for the first quarter of 2012.

 

Data showed the Spanish economy shrank during the quarter by 0.3% in the past quarter, when the expectation was a contraction of 0.4%.
In addition, credit rating agency S & P announced yesterday on credit downgrade of 16 Spanish banks.

 

The agency said that the downgrade is a direct extension to the credit rating downgrade which took place on Wednesday, when the state's credit rating dropped two levels to the level of BBB +.

Asian stock markets trading day (Tuesday) conducted in a mixed trend, after a negative closing in New - York last night and after the release of relatively good macro data from China.

Australia's central bank today lowered its main interest rate by 0.5% to 3.75%. Contracts on Wall Street indices are signaling to a mixed trend with a tendency to increase at the open of trading day.

Stock exchanges of Hong - Kong, Seoul, China, India and Singapore are closed today on the occasion of holidays.

In Europe the banks also will be closed today due to Labor Day.

 

DOW 0.11% ↓      S&P 0.39 % ↓      NSDQ 0.74% ↓   

 

Technical review

EUR / USD:

EUR/USD trading at -1.3253 an increase of 0.11% in writing.

The pair may find support at 1.3205 Monday low and resistance at- 1.3270 Friday high.

Meanwhile, the Euro gain strength against the British Pound and against the Japanese Yen, when the -EUR/GBP add a 0.23% to 0.8171 and –EUR/JPY add 0.01% to 105.67.

GBP/USD:

The British Pound weakens against the U.S Dollar today, trading at 1.6217 a decrease of 0.09%.

The pair may find support at 1.6162 Friday low and resistance at 1.6300 Monday high.

Meanwhile, the British Pound weakens against the Euro and against the Japanese Yen, while the EUR/GBP add a 0.23% to 0.8171 and the GBP/JPY drop 0.34% to 129.13.

USD/CAD:

The U.S Dollar gain strength against the Canadian Dollar today, trading at 0.9878 an increase of 0.08%.

The pair may find support at 0.9820 Wednesday low and resistance at 0.9891 Monday high.

Meanwhile, the U.S Dollar weakens against the Euro and gain strength against the British pound, while the EUR /USD add 0.11% to 1.3253 and the GBP/USD drop 0.09 to 1.6217.

WTI- Crude Oil:

The WTI weakens today, trading at 104.72 a decrease of 0.19%.

May find support at 103.88 Monday low and resistance at 105.15 Monday high.

 

Matt Kenigsberg