Weekly review 30/7-3/8/12
Trading week on Wall Street is expected to open today (Monday) with the growing expectations of a substantial interference of the Federal Reserve in light of recent macro data indicate continued slow recovery and background signals for another round of European bond purchases by the ECB.
In the macro arena will be published variety of important data, including employment data for July and the season reports for the second quarter.
Last week the policy makers of the Eurozone, including the president of the ECB Mario Draghi, German Chancellor Angela Merkel and French President Francois Hollande, announced they will do anything to protect the euro, many mark the coming week as a test for the leaders, when the main question at hand is whether Germany agrees to additional bond purchases by the European Central bank.
Although none of the leaders did not specify what actions he intends to take, these statements have raised expectations among investors and analysts that the ECB or the temporary rescue fund of Europe (EFSF) may purchase the Spanish bonds to provide financing costs in the collapsing country.
On Friday, the initial estimate in the second quarter for U.S. growth published. Growth slowed to 1.5% vs 2% in the first quarter, while consumer and business spending in world's biggest economy slowed in accordance with local and global trend.
Expectation, however, was to growth in rate only of 1.3%.
The most attention this week will attract the Fed, when on Wednesday published a policy statement by the Conference of the open market and the big question: will QE3 declared this week?
EUR / USD:
EUR/USD trading at -1.2290 a decrease of 0.25% in writing.
The pair may find support at 1.2116 Thursday low and resistance at- 1.2388 Friday high.
Meanwhile, the Euro weakens against the British Pound and against the Japanese Yen, when the -EUR/GBP drop a 0.06% to 0.7817 and –EUR/JPY drop 0.34% to 96.31.
The British Pound weakens against the U.S Dollar today, trading at 1.5717 a decrease of 0.17%.
The pair may find support at 1.5665 Friday low and resistance at 1.5766 Friday high.
Meanwhile, the British Pound gain strength against the Euro and weakens against the Japanese Yen, while the EUR/GBP drop a 0.06% to 0.7817 and the GBP/JPY drop 0.26% to 123.17.
The U.S Dollar gains strength against the Canadian Dollar today, trading at 1.0038 an increase of 0.10%.
The pair may find support at 1.0029 Friday low and resistance at 1.0164 Thursday high.
Meanwhile, the U.S Dollar gain strength against the Euro and against the British pound, while the EUR /USD drop 0.25% to 1.2290 and the GBP/USD drop 0.17% to 1.5717.
WTI- Crude Oil:
The WTI gain strength today, trading at 90.72 an increase of 0.49%.
May find support at 89.86 today low and resistance at 91.61.