Daily review 22/05/12
Asian stock markets trade is conducted today (Tuesday) on price increases, for the second consecutive day, due to market speculation that China may take further quantitative expansion after the Chinese prime minister's statements, about encouraging growth.
This is in addition to G8 Forum statements that Greece has to remain in the Eurozone, after their conference in the last weekend.
Wall Street contracts signal on a negative Open in the U.S.
European financial policy leaders will do "all it takes" to keep Greece in the Eurozone and help , said German Finance Minister Wolfgang again yesterday, for the meeting of Europe finance ministers expected to take place tomorrow in Brussels.
The “Financial Times" reports that the euro leaders are working to keep Greece in the Eurozone and acted secretly to transfer 100 billion euros to revive the country's banking system and prevent it from collapsing.
According to the report, the European Central Bank (ECB) not issued an official statement on the money transfer and didn’t gave Greece any conditions (such as the reform) before the huge amount was transferred.
Apparently, the concern in the European countries is the huge assistance that would go through "proper channels" and eventually the central bank would have rejected the aid, so it was a catalyst that speeds up the exit of Greece from the Eurozone.
The money transferred to Greece, were part of “emergency aid” (ELA), considered one of the less familiar tools of the ECB, which it can approve quick assistance to banks in the EU suffering from severe liquidity.
So far, the ECB had previously accepted a similar aid to Ireland, but the amount was much lower than that given to Greece.
DOW 1.09%↑ S&P 1.60%↑ NSDQ 2.46%↑
Technical review
EUR / USD:
EUR/USD trading at -1.2792 a decrease of 0.20% in writing.
The pair may find support at 1.2780 today low and resistance at- 1.2822 Monday high.
Meanwhile, the Euro weakens against the British Pound and against the Japanese Yen, when the -EUR/GBP drop a 0.12% to 0.8083 and –EUR/JPY drop 0.01% to 101.63.
GBP/USD:
The British Pound weakens against the U.S Dollar today, trading at 1.5820 a decrease of 0.08%.
The pair may find support at 1.5778 Monday low and resistance at 1.5839 Monday high.
Meanwhile, the British Pound gain strength against the Euro and against the Japanese Yen, while the EUR/GBP drop a 0.12% to 0.8083 and the GBP/JPY add 0.13% to 125.70.
USD/CAD:
The U.S Dollar weakens against the Canadian Dollar today, trading at 1.0156 a decrease of 0.16%.
The pair may find support at 1.0136 Friday low and resistance at 1.0181 today high.
Meanwhile, the U.S Dollar gain strength against the Euro and against the British pound, while the EUR /USD drop 0.20% to 1.2792 and the GBP/USD drop 0.08 to 1.5820.
WTI- Crude Oil:
The WTI gain strength today, trading at 93.21 an increase of 0.35%.
May find support at 91.21 Friday low and resistance at 94.19 Thursday high.
