Daily review 07/08/12

Asian leading stock markets trading is conducted today (Tuesday) in prices increase on the background of the positive closing on Wall Street last night. European optimism about the purchase of Spanish and Italian bonds by the ECB was reinforced yesterday after the German Chancellor, Angela Merkel, said that the her government supports the ECB program. 

HSBC Bank estimates that South Korea central bank is expected to repeat the operation from the previous month and cut another 0.25% interest rate in the country.

South Korean  central bank  cut interest rates in July the first time in about 3 years, and lowered its growth forecast for 2012.

Europe influenced the direction of the  trading, because of several reports from the mainland.

The big question is what the next action of the ECB.

Italian Prime Minister Mario Monti and Spaniard Finance Minister Luis de - Goweindos tried over the weekend to reassure the talk that both countries will need assistance packages.

Monty stated that his country needs moral support not financial assistance.

In Spain, the Minister of Finance claims that the state doesn’t  needs aid package in the near future and said that the state can meet all its commitments until the end of the year, and that can wait until brightening things about rescue package from the Eurozone.

Optimism was also recorded in Greece after its finance minister Yannis Stornars told journalists that his country is ready to implement further austerity programs in exchange for continued funds from the European Union and International Monetary Fund.

Stornars said before meeting with representatives of “troika" who visit Greece in order to assess the country progress in implementing austerity programs.

Fed Chairman Bernanke spoke in front of the International Conference Association for Research in Cambridge, and said that despite many measures of the economy indicate a recovery, many people and businesses facing with hard times.

He did not talk about the economic outlook and employment data from Friday.

NSDQ 0.74%↑    S&P 0.23%↑    DOW 0.16%↑

Technical review

EUR / USD:

EUR/USD trading at 1.2380 a decrease of 0.15% in writing.

The pair may find support at 1.2165 Friday low and resistance at- 1.2443 Monday high.

Meanwhile, the Euro gain strength against the British Pound and weakens against the Japanese Yen, when the -EUR/GBP add a 0.05% to 0.7950 and –EUR/JPY drop 0.12% to 96.89.

GBP/USD:

The British Pound weakens against the U.S Dollar today, trading at 1.5567 a decrease of 0.21%.

The pair may find support at 1.5545 Monday low and resistance at 1.5655 Friday high.

Meanwhile, the British Pound weakens against the Euro and against the Japanese Yen, while the EUR/GBP add a 0.05% to 0.7950 and the GBP/JPY drop 0.14% to 121.86.

USD/CAD:

The U.S Dollar gains strength against the Canadian Dollar today, trading at 1.0006 an increase of 0.06%.

The pair may find support at 0.9978 Friday low and resistance at 1.0023 Friday high.

Meanwhile, the U.S Dollar gain strength against the Euro and against the British pound, while the EUR /USD drop 0.15% to 1.2380 and the GBP/USD drop 0.21% to 1.5567.

WTI- Crude Oil:

The WTI weakens today, trading at 91.81 a decrease of 0.24%.

May find support at 90.59 Monday low and resistance at 92.28 Monday high.

Matt Kenigsberg