Weekly review 4-8/6/12
Wall Street trading week is expected to open today on the background of the economic shock caused by the employment and unemployment data released Friday, suggested that the U.S. economy is far from recovery.
Employment figures showed that U.S. economy added 69 thousand jobs in May - far below analysts' expectations.
The unemployment rate rose in May to 8.2% (annual rate).
Beyond the hard data in the U.S., Europe will continue to interest investors when the main disagreement between Eurozone leaders is whether to create a common bond (Euro - Bonds) or whether to continue the austerity measures and deepening integration.
In the macro arena: Bernanke, trade balance and unemployment figures.
As stated, the markets reacted hard to unemployment figures.
Leading indices rapidly lost their value on Friday, up about 2.8%, when the Dow Jones deleted the year increases and S & P 500 entered to "correction" territory, that mean is down more than 10% from a peak of 12 months.
While policy makers in the Eurozone are trying to decide which direction to take when dealing with the crisis of debt, which deepens and validated on all sides - from Spain to Greece and Italy suffered over the weekend downgrade in credit rating by Moody's.
Eurozone leaders and especially the countries into debt hanging hopes on the permanent stabilization fund of the EU, (ESM), whose scope is about 500 billion euros, is expected to start operating in July this year.
EUR / USD:
EUR/USD trading at -1.2397 a decrease of 0.30% in writing.
The pair may find support at 1.2360 Wednesday low and resistance at- 1.2456 Friday high.
Meanwhile, the Euro weakens against the British Pound and against the Japanese Yen, when the -EUR/GBP drop a 0.31% to 0.8067 and –EUR/JPY drop 0.08% to 96.90.
The British Pound gains strength against the U.S Dollar today, trading at 1.5365 an increase of 0.04%.
The pair may find support at 1.5269 Friday low and resistance at 1.5436 Friday high.
Meanwhile, the British Pound gain strength against the Euro and against the Japanese Yen, while the EUR/GBP drop a 0.31% to 0.8067 and the GBP/JPY add 0.21% to 120.04.
The U.S Dollar gains strength against the Canadian Dollar today, trading at 1.0433 an increase of 0.23%.
The pair may find support at 1.0386 today low and resistance at 1.0445 today high.
Meanwhile, the U.S Dollar gain strength against the Euro and weakens against the British pound, while the EUR /USD drop 0.30% to 1.2397 and the GBP/USD add 0.04% to 1.5365.
WTI- Crude Oil:
The WTI weakens today, trading at 82.09 a decrease of 1.35%.
May find support at 81.00 low and resistance at 83.34 Friday high.