Daily review 03/08/12

Daily review 03/08/12

European Central Bank decided to keep interest rates in the Euro Zone without change, at a level of 0.75%.  Also the Bank of England kept interest rates unchanged  at the level of 0.5%.

Sale of bonds by the Spanish government for two years period , four years and 10 years came out with a total of 3.1 billion euros - more than expected, which stood at 2-3 billion euros. However, demand was less than in previous auctions.

Mario Draghi started his press conference, pointing out that the euro will not be  disintegrated or collapse, and this prompted and encouraged the market, it also pointed out that the costs of borrowing of the European countries is currently very high and unacceptable and the  governments should join the forces to support and activate the stabilization fund, which must be kept on standby.

In U.S. the factory requests for the month of June was published  by -0.5% compared to 0.5%, which was amended from 0.7% in the previous reading for the month of May, and so is the current reading worse than analysts' expectations.

European stock markets retreat after it opened in price increases, the negative trend, closing remarks after the President of the European Central Bank not to take additional measures to encourage economic growth in Europe and the reduction of the debt crisis.

FTSE 100 Index closed on 5662.3 points decline of 0.88%,Germany's DAX index closed on 6606.09 delete a decrease of 1.4%.

DOW 0.71%↓       S&P 0.74%↓      NSDQ 0.36%↓

EUR / USD

Euro found new resistance levels at 1.2223 dollars per euro, if the price is below the survival of these levels indicates  downward trend.

In yesterday’s trading the pair reached the highest level at 1.2402 while, the lowest level at 1.2132 dollars per euro. To close at the level of  1.2179.

GBP / USD

Sterling found new resistance levels at 1.5600 dollars per pound, if the price remains below the survival of these levels indicates  downward trend.

In trading yesterday, the pair hit its highest level at 1.5677 dollars and the lowest level at 1.5489. To close at  the level of 1.5513.

USD / CAD

USD/CAD found new support levels at 1.0003 , if price remains above these levels indicates upward trend.

In trading yesterday, the pair reached the highest level at 1.0083 and touched the lowest level at 1.0000 U.S.. To close at  the level of 1.0072.

WTI

Oil found new levels of resistance at 89.43 dollars per barrel, if the price is below the survival of these levels indicates downward trend.

U.S. light crude futures in New York Mercantile Exchange (NYMEX) closed in the levels of 87.26 dollars per barrel, having fallen from a peak of 89.60 dollars per barrel, touching its lowest level at 86.91 dollars per barrel.