Daily review 23/05/12
Newspaper quoted the Greek Prime Minister Lucas Papademos saying that the getting out from the Euro zone of Greece is a real danger. The euro continued its losses against the dollar more than 1% in U.S. trading on Tuesday. In addition of growing doubts that on the informal meeting of European leaders made little progress in the treatment of the debt crisis is expected to keep the policy problems in the Greek banking sector
The Organization of Economic Cooperation and Development stated, that the economies of the euro countries, will shrink this year by 0.1% to grow by 0.9% next year, the organization added that the crisis of the Euro Zone is the greatest threat to the global economy, and that its expected the U.S. economy to grow by% 2.4 this year and by 2.6% next year. The report comes on the eve of a summit of EU leaders to discuss ways to restore growth and the need for rationalization of Germany’s financial and structural reforms, while France calls to pump more spending on infrastructure projects and the issuance of bonds common to the euro zone.
In Britain, yesterday was announced by the National Center for Statistics decline in inflation in Britain to its lowest level in two years. In March this rate was 3.5% to get decreased to 3% during April, which opens the way for the Bank of England to do more to interventions in markets to boost the economy through this year.
The U.S. existing home sales rose in April to the highest annual rate in nearly two years and contributed to a decline in foreclosures of real estate prices which are positive indications of the pace of recovery in the housing sector.
In commodity markets, Gold fell on Tuesday more than $ 25 an ounce, a decrease of 1.57% as a result of o weak euro.
European shares rose in yesterday’s trading session which is the biggest daily gain in a month, supported by expectations that Europe and China will take measures to promote economic growth, but investors are still worried because of the continuing political uncertainty, and in the Wall Street U.S. stocks ended little changed on Tuesday after fluctuations in the late session, dropping energy stocks and shares in financial institutions:
DOW 0.01% ↓ S & P 0.05% ↑ NSDQ 0.29%↓
EUR / USD
The pair dropped yesterday, more than 130 points, touching the level of 1.2656 and achieved the highest level in 1.2817. If the pair break the support level of 1.2600, it is expected to face the next level of 1.2560, while the breaking the level of 1.2735 could postpone achieving these expectations.
The trading range for the day: Resistance 1.2735 1.2780 1.2815
Support 1.2520 1.2560 1.2600
GBP / USD
Sterling fell against the dollar, more than 70 points, and achieved the highest level in 1.5846, while the lowest in the 1.5739. Most likely the pair will try to test support at 1.5695, while braking of 1.5820 would delay the achievement of these expectations.
The trading range for the day: Resistance 1.5820 1.5845 1.5890
Support 1.5650 1.5695 1.5735
Gold fell on Tuesday more than $ 25 an ounce, a decrease of% 1.57 affected by the weak euro, The precious metal achieved the highest level at 1594.28, while the lowest in the 1561.22. Most likely, the gold will try to test the level of support in 1542 while braking the level of 1579 could delay achievement of these expectations .
The trading range for the day: Resistance 1579 1585 1600
Support 1530 1542 1552
Oil WTI - Crude Oil
U.S. crude oil fell on Tuesday as the reduced agreement expected between Iran and the International Atomic Energy Agency (IAEA) concerns about the disruption of oil supplies and warned the Organization for Economic Cooperation and Development of the crisis in the euro zone could undermine the global economic recovery. The U.S crude oil prices in yesterday’s trading were ranging between 93.24 and 91.16 dollars a barrel. Most likely the oil will try to test the level of support at 90.00 , while the penetration in the level of 92.65 could postpone achieving these expectations.
The trading range for the day: Resistance 92.65 93.00 93.75
Support 89.20 90.00 90.80