Daily review 02/08/12
Asian stock markets trading is conducted today (Thursday) in a mixed trend with a tendency to decline.
It seems that Asian investors were disappointed by the chairman of the Fed Ben Bernanke, who didn’t make any statement at the meeting for the interest rate last night and because he didn’t give a hint of extend operations as expected in the markets.
Today, investors' eyes will be pointed toward the European Central Bank Governor Mario Draghi expecting to publish the interest rate decision in the Eurozone for August and may announce new plans to restrain the debt crisis.
Trading session on Wall Street last night closed in prices decrease, immediately after it became clear that Bernanke didn’t suggested any steps to expand that the U.S. central bank intends to take.
In contrast to earlier estimates in the markets, Bernanke also did not inform the extension of zero interest rate policy for another year or when he intends to raise interest rates.
Open Market Committee and Bernanke repeated on their old mantras that only if there will be an additional case of deterioration in the economy, they would be willing to act.
As mentioned, after Bernanke disappointed last night, today investors are asking themselves whether the Governor of the ECB will save and declare expanding measures in the interest rate decision for August that will be published today.
This comes in the light of statements of a Draghi last week, according to which he will do his best to protect the Eurozone.
According to market estimates, Draghi will go in new programs for funding costs of Spain and Italy simultaneously with an additional reduction in the inserts rate to 0.5%.
We note that Australia's retail sales were surprisingly good and increased by 1% in June, when analysts point out the surprising rise in private consumption policy of lowering the central bank's interest rate and an increase in government spending.
DOW 0.29%↓ S&P 0.29%↓ NSDQ 0.66%↓
EUR / USD:
EUR/USD trading at 1.2238 an increase of 0.13% in writing.
The pair may find support at 1.2215 today low and resistance at- 1.2388 Friday high.
Meanwhile, the Euro gain strength against the British Pound and against the Japanese Yen, when the -EUR/GBP add a 0.05% to 0.7871 and –EUR/JPY add 0.14% to 96.00.
The British Pound gains strength against the U.S Dollar today, trading at 1.5547 an increase of 0.08%.
The pair may find support at 1.5521 today low and resistance at 1.5689 Wednesday high.
Meanwhile, the British Pound weakens against the Euro and gain strength against the Japanese Yen, while the EUR/GBP add a 0.05% to 0.7871 and the GBP/JPY add 0.12% to 121.96.
The U.S Dollar weakens against the Canadian Dollar today, trading at 1.0053 a decrease of 0.02%.
The pair may find support at 1.0002 Tuesday low and resistance at 1.0104 Friday high.
Meanwhile, the U.S Dollar weakens against the Euro and against the British pound, while the EUR /USD add 0.13% to 1.2238 and the GBP/USD add 0.08% to 1.5547.
WTI- Crude Oil:
The WTI weakens today, trading at 88.86 a decrease of 0.03%.
May find support at 87.29 Tuesday low and resistance at 90.81 Monday high.