The Pound extended its rally to a nine day high, just shy of $1.58 before the results of the ECB’s allotment were announced. The results were at the upper end of expectations and the Pound has since returned to session lows. A classic buy the rumor of a strong demand and sell the fact. Expectations seemed to have crept higher. The larger short squeeze in the Pound may not be over. The key seems to be $1.58 area. It should now be support for this corrective advance to remain intact. Continue reading
Monthly Archives: December 2011
Binary Options Signal MCD 12/19/11
US equity market have experienced a subpar year. With approximately 2 weeks left in 2011, the S&P 500 index is lower by nearly 3%, while the Dow Industrials is unchanged. Despite the lackluster 2011, McDonalds has experienced a strong year up almost 35%. Continue reading
Binary Options Signal EUR/USD 12/14/11
ECB and other non-US G10 central banks are back in easing mode, which is another supportive factor for the dollar going forward that is separate from the safe haven flows due to headlines in euro zone concerns. European data remains weak. Euro zone Industrial Production fell -0.1% m/m in October vs. flat m/m expected and -2.0% m/m in September. Italy sold EUR3 billion of 5-year bonds at a yield of 6.47% vs. 6.29% last month, while the bid to cover ratio fell to 1.42 from 1.47. However, Germany sold EUR4.2 billion of 2-year notes at a yield of 0.29% vs. 0.39% last month, while the bid to cover ratio rose to 1.4 from 1.1. The divergence of interest between Germany and the periphery is evident. Continue reading
Binary Options Signal Gold 12/12/11
After last week’s drama from euro zone policy makers, which in the long-run are important steps towards finding a resolution to the crisis, there is plenty of scope for markets to take a step back this week. Currencies and commodities are likely to trade a bit more defensively this week as liquidity starts to dry up ahead of the holidays and as markets continue to digest ongoing news surrounding Europe. The possibility of a ratings downgrades of any of the AAA European countries, together with the potential for soft euro zone economic data, are likely to weigh on the market’s appetite for risk. Continue reading
Binary Options Signal JP Morgan 12/05/11
Last week’s surge in equity prices was lead by financials which received a boost from increased liquidity from the major central banks and a reduction in interest rates from the central bank of China. Data and official commentary confirm that the slowdown in the Chinese economy is gaining pace and that the government has moved into a defensive stance. The non-manufacturing PMI came in at 52.5 in November, down from 54.1 last month, which comes on the back of last week’s manufacturing PMI which printed at sub-50 for the first time since early 2009. Continue reading