Weekly review 19-23.12.2011
Financial markets are falling due to fears of further deterioration in the Eurozone.
International rating agencies and the disappointing speech of Fed Chairman Bernanke contributed to pessimism in the markets.
The dollar closed one of the best weeks of the year against the euro.
Greenback almost managed to examine the yearly peak against the euro stands at -1.2873.
If European leaders fail to get out of the impasse, the euro is expected to continue decreasing to a new low.
EU leaders are expected to meet this week to find a practical solution to the debt crisis threatening to destroy the entire Eurozone.
Until there will be no solution to the crisis, volatility will continue and the international rating agencies continue to lower the credit rating of the European countries one by one.
Investors try to absorb Belgium's download credit rating two levels by ratings agency Moody's.
This week the holiday season begins, so liquidity in the markets expected to be low.
The negative atmosphere from last week is expected to continue with the opening of the week ahead.
In the commodities sector, gold may complete the correction started a few weeks ago.
Assessment is that this week the gold will examined historical trend line, not broken since October 2008 at 1535 dollars an ounce.
Crude oil may recover slightly after the heavy losses suffered last week.
DOW 0.02%↓ S&P 0.32 % ↑ NSDQ 0.56%↑
EUR / USD:
EUR/USD trading at -1.2988 a decrease of 0.42% in writing.
The pair may find support at 1.2944 Wednesday low and resistance at- 1.3082 Friday high.
Meanwhile, the Euro gain strength against the British Pound and weakens against the Japanese Yen, when the -EUR/GBP add a 0.04% to 0.8393 and –EUR/JPY drop 0.15% to 101.26.
The British Pound weakens against the U.S Dollar today, trading at 1.5469 a decrease of 0.48%.
The pair may find support at 1.5407 Wednesday low and resistance at 1.5555 Friday high.
Meanwhile, the British Pound weakens against the Euro and against the Japanese Yen, while the EUR/GBP adds a 0.04% to 0.8393 and the GBP/JPY drop 0.17% to 120.66.
The U.S Dollar gains strength against the Canadian Dollar today, trading at 1.0410 an increase of 0.27%.
The pair may find support at 1.0295 Friday low and resistance at 1.0421 Wednesday high.
Meanwhile, the U.S Dollar gains strength against the Euro and against the British pound, while the EUR /USD drop 0.42% to 1.2988 and the GBP/USD drop 0.48% to 1.5469.
WTI- Crude Oil:
The WTI weakens today, trading at 92.96 a decrease of 0.63%.
May find support at 92.51 Friday low and resistance at 95.96 Thursday high.