Weekly review 30/04-4/5/12


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Trading week opens against the background of sequence disappointing macro data released over the weekend, especially the U.S. economy first growth estimate (GDP), indicating that the economy grew at an annual rate of 2.2% in the first quarter of 2012 - less than expected.

Beyond that, the European debt crisis will continue to influence the trend in the markets with Spain and the upcoming elections in Greece continue to increase the concern of investors.

Recall that at the end of the trading week, Wall Street closed in increases of up to 0.6% and concluded a 4 days sequence increases, despite a series of disappointing economic data.

More in the U.S, reported that U.S. authorities have closed during the past week five banks and thereby the number of bankrupt banks across the United States since the beginning of the year rose to 22 banks.

Spain continues to worry, It seems that the European debt crisis continues to hit full swing, when Spain is in the spotlight after this weekend its unemployment figures reached a new record, and the rating agency S & P lowered its credit rating.

Economists from the rating agency S & P wrote that "the government's budget deficit is expected to continue to deteriorate due to expectations of continued economic contraction", and in light of these things cut both levels of the Spain's credit rating, to "BBB +".

In the macro scene: today will be published data on income and expending of U.S. private sector for April, when analysts expect growth of 0.3% of personal income, compared to a 0.2% increase the previous month.

Forecasts also expect an increase of 0.5% of household spending, it compared with growth of 0.8% in the previous month.

Also today the Chicago purchasing managers' index for April will publish, when analysts predict falling to 60.9 points, compared to a reading of 62.2 points at the previous month.
On Tuesday will be published the manufacturing survey (ISM) for April.
Analysts' consensus points to a moderate decline to the level of 53 points, compared to a reading of 53.4 points in March.

On Wednesday published the employment survey for April (ADP), when analysts expect the U.S. economy will add about 180 thousand new jobs, except the agriculture sector.

On Friday, the unemployment data for April will be published.

 

Technical review

EUR / USD:

EUR/USD trading at -1.3242 a decrease of 0.07% in writing.

The pair may find support at 1.3198 Thursday low and resistance at- 1.3270 Friday high.

Meanwhile, the Euro weakens against the British Pound and against the Japanese Yen, when the -EUR/GBP drop a 0.15% to 0.8133 and –EUR/JPY drop 0.22% to 106.11.

GBP/USD:

The British Pound gains strength against the U.S Dollar today, trading at 1.6276 an increase of 0.08%.

The pair may find support at 1.6156 Friday low and resistance at 1.6282 today high.

Meanwhile, the British Pound gain strength against the Euro and weakens against the Japanese Yen, while the EUR/GBP drop a 0.15% to 0.8133 and the GBP/JPY drop 0.05% to 130.45.

USD/CAD:

The U.S Dollar weakens against the Canadian Dollar today, trading at 0.9802 a decrease of 0.02%.

The pair may find support at 0.9797 Friday low and resistance at 0.9844 Thursday high.

Meanwhile, the U.S Dollar gain strength against the Euro and weakens against the British pound, while the EUR /USD drop 0.07% to 1.3242 and the GBP/USD add 0.08 to 1.6276.

WTI- Crude Oil:

The WTI weakens today, trading at 104.76 a decrease of 0.02%.

May find support at 103.72 Friday low and resistance at 104.97 Friday high.

 

Matt Kenigsberg