In an effort to save the U.S economy from its worst recession since the 1930s, senators approved the stimulus package yesterday, allowing President Barak Obama to go forward with his enormous plan. During yesterday’s U.S stock session, treasury secretary Tim Geithner announced that $500 billion of private money will be allocated to recapitalize banks while another $1 trillion will go to consumers, helping the economy and businesses.
Prior to the decision, the major U.S indices were trading in negative territory, as short players overwhelmed the markets. As the famous saying goes “buy the rumor, sell the fact”, the selling pressure intensified throughout the session sending the indices to close just off their lows of the day.
In addition, Ben Bernanke released his testimony yesterday stating that they have introduced new measures to improve transparency, throughout the markets.
Despite all of the intraday movement on stocks, price movement on the Forex market was similar to previous trading days. Currency pairs didn’t make any extreme moves, allowing the Dollar index to continue to consolidate between horizontal resistance and trend line support.
When analyzing the various pairs, one can see that most of them managed to find support on minor trend lines. For example, the GBP/USD managed to find support on its minor trend line around 1.4443, while the EUR/USD continued to trade within recent range levels.
After a month of declines, bonds received a boost during yesterday’s session, as puzzled traders fled back to safe-haven. Even though yields were not presenting phenomenal returns, frozen stock markets sent money pouring back in. The 20+ year Treasury Bond Fund gapped up during yesterday’s U.S session, closing higher with gains of 2.17%.
Economic data continued to paint a gloomy picture today as the Unemployment rate in the U.K jumped to 6.3% while inflation data from Germany continued to show declines. In addition to the normal influencing economic data, the U.S will be releasing its crude oil inventories later on today.
To date crude oil has failed to regain its strength and is now heading back to December’s lows. The global slowdown is having an enormous impact on consumer consumption and on the price of commodities, forcing them into a downward trend. Even though OPEC has hinted on further production cuts, falling demand continues to hit oil’s prices sending the price to lower levels.
Looking forward, traders should observe the U.S session today also known as an “aftershock session”. Throughout the afterhours investors tend to acknowledge important decisions, sending the markets in their correct direction, the next trading day.
Dodjit,Trading Courses ,Forex reports,Stocks Analysis,Forum,Currency trends
Prior to the decision, the major U.S indices were trading in negative territory, as short players overwhelmed the markets. As the famous saying goes “buy the rumor, sell the fact”, the selling pressure intensified throughout the session sending the indices to close just off their lows of the day.
In addition, Ben Bernanke released his testimony yesterday stating that they have introduced new measures to improve transparency, throughout the markets.
Despite all of the intraday movement on stocks, price movement on the Forex market was similar to previous trading days. Currency pairs didn’t make any extreme moves, allowing the Dollar index to continue to consolidate between horizontal resistance and trend line support.
When analyzing the various pairs, one can see that most of them managed to find support on minor trend lines. For example, the GBP/USD managed to find support on its minor trend line around 1.4443, while the EUR/USD continued to trade within recent range levels.
After a month of declines, bonds received a boost during yesterday’s session, as puzzled traders fled back to safe-haven. Even though yields were not presenting phenomenal returns, frozen stock markets sent money pouring back in. The 20+ year Treasury Bond Fund gapped up during yesterday’s U.S session, closing higher with gains of 2.17%.
Economic data continued to paint a gloomy picture today as the Unemployment rate in the U.K jumped to 6.3% while inflation data from Germany continued to show declines. In addition to the normal influencing economic data, the U.S will be releasing its crude oil inventories later on today.
To date crude oil has failed to regain its strength and is now heading back to December’s lows. The global slowdown is having an enormous impact on consumer consumption and on the price of commodities, forcing them into a downward trend. Even though OPEC has hinted on further production cuts, falling demand continues to hit oil’s prices sending the price to lower levels.
Looking forward, traders should observe the U.S session today also known as an “aftershock session”. Throughout the afterhours investors tend to acknowledge important decisions, sending the markets in their correct direction, the next trading day.
Dodjit,Trading Courses ,Forex reports,Stocks Analysis,Forum,Currency trends