The new president Barack Obama lifted some spirits yesterday, appearing after a negative session in the U.S on the Tonight Show with Jay Leno. While president Obama managed to get a laugh or two out of his audience, the event was focused around the economic situation. The new president stated that he was stunned that AIG workers could accept such bonuses, especially due to the current crisis. Not all the statements were depressing and the president did manage to increase spirits, mentioning that the economy has a good shot at turning around.
The House of congress approved a tax of 90% on the money that was allocated to AIG yesterday. The vote was approved by 328 furious members, shocked to see that a company could use taxpayer’s money in such a way, giving such large bonuses.
After a week of positive sessions, the U.S markets closed yesterday with mild losses. The major indices started the session on a positive note, but failed to follow through, reversing throughout the session, closing in red. The s&p500 closed the session down by -1.3%, while the Dow shredded -1.15%.
Citigroup also received some focus yesterday after news headlines showed that recently received capital was directed to redesigning its offices. The financial group answered the press stating that the plan will help generate savings in the next couple of years. In addition the company stated that it intends to do a reverse split of its shares, which could increase the value of their stock.
Fundamental data also caught investor’s eyes as unemployment claims in the U.S showed a lower than expected figure coming out at 646k. In addition, the Philadelphia Fed Manufacturing index showed another declining figure coming out at -35 points.
Overseas Asian stock followed the U.S’s momentum opening the session in negative territory. The decline was led by the financial and technology sector. The major mover was Casio computer, dropping by 13.51%
How Fast Can It Drop?
The Dollar index continued its massive drop, reaching a low of 82.63. The Dollar index is now trading slightly higher after declining rapidly over the last two trading days. Currently trading around trend line support, the Dollar index could see a slight bounce on profit taking of short positions.
On Individual pairs the EUR/USD continued on its glorious rally reaching target 2, as stated in dodjit’s recent video. The GBP/USD managed to climb up to trend line support and is now trading slightly above that level. Additional support was received yesterday after economic data showed that the money supply had increased by analyst’s estimates of 1.4%, while the public sector net borrowing jumped to a figure of 9.00B. Furthermore, The Feds recent treasury buy up plan encouraged Dollar selling, as the plan aimed at reducing borrowing costs for businesses and consumers, encouraging consumers to release their money out of safe-haven assets.
Gold and oil continued higher on a hedge against inflation. One must remember that the additional funds in the markets are worrying investors, as the rate of demand could increase at a faster pace than the rate of supply, especially as the Fed is aimed at resuming consumption. Gold increased during the session breaking resistance, while Crude oil climbed higher touching a high of $52.97 per barrel.
What’s Coming Up?
The U.S session will be tested today, to see if yesterday’s losses were the start of a minor pullback or the start of a larger drop. In addition, Canadian data will grab Forex trader’s attention as the economy is expected to release a rise in the retail sector.
Dollar index
market pivot points
enjoy
Dodjit
The House of congress approved a tax of 90% on the money that was allocated to AIG yesterday. The vote was approved by 328 furious members, shocked to see that a company could use taxpayer’s money in such a way, giving such large bonuses.
After a week of positive sessions, the U.S markets closed yesterday with mild losses. The major indices started the session on a positive note, but failed to follow through, reversing throughout the session, closing in red. The s&p500 closed the session down by -1.3%, while the Dow shredded -1.15%.
Citigroup also received some focus yesterday after news headlines showed that recently received capital was directed to redesigning its offices. The financial group answered the press stating that the plan will help generate savings in the next couple of years. In addition the company stated that it intends to do a reverse split of its shares, which could increase the value of their stock.
Fundamental data also caught investor’s eyes as unemployment claims in the U.S showed a lower than expected figure coming out at 646k. In addition, the Philadelphia Fed Manufacturing index showed another declining figure coming out at -35 points.
Overseas Asian stock followed the U.S’s momentum opening the session in negative territory. The decline was led by the financial and technology sector. The major mover was Casio computer, dropping by 13.51%
How Fast Can It Drop?
The Dollar index continued its massive drop, reaching a low of 82.63. The Dollar index is now trading slightly higher after declining rapidly over the last two trading days. Currently trading around trend line support, the Dollar index could see a slight bounce on profit taking of short positions.
On Individual pairs the EUR/USD continued on its glorious rally reaching target 2, as stated in dodjit’s recent video. The GBP/USD managed to climb up to trend line support and is now trading slightly above that level. Additional support was received yesterday after economic data showed that the money supply had increased by analyst’s estimates of 1.4%, while the public sector net borrowing jumped to a figure of 9.00B. Furthermore, The Feds recent treasury buy up plan encouraged Dollar selling, as the plan aimed at reducing borrowing costs for businesses and consumers, encouraging consumers to release their money out of safe-haven assets.
Gold and oil continued higher on a hedge against inflation. One must remember that the additional funds in the markets are worrying investors, as the rate of demand could increase at a faster pace than the rate of supply, especially as the Fed is aimed at resuming consumption. Gold increased during the session breaking resistance, while Crude oil climbed higher touching a high of $52.97 per barrel.
What’s Coming Up?
The U.S session will be tested today, to see if yesterday’s losses were the start of a minor pullback or the start of a larger drop. In addition, Canadian data will grab Forex trader’s attention as the economy is expected to release a rise in the retail sector.
Dollar index
market pivot points
enjoy
Dodjit