Thursday, December 27, 2012

Various Asset Risk Tumbles, Dollar Rising Post Comment Senate Reid

Various Asset Risk Tumbles, Dollar Rising Post Comment Senate Reid. FOREX ANALYSIS TODAY.
USDCHF: Still Bearish Signal, Support range at 0.9047 - 0.8921
NZD / USD: Bearish Signals Appear, Watch 0.8190 - 0.8153
GBP / USD: Bullish Opportunity Appears If, Amati Resistance range 1.6189 - 1.6233
Trying Translucent 1.3220 Euro Area
EURJPY: Bullish Signals Survive, Say Other Stochastic

Senate majority leader, Harry Reid signaled that the U.S. seems to be heading the fiscal cliff trigger weakening various U.S. stock exchanges and boost the performance of the U.S. Dollar. Strengthening was shown by EURUSD, GBPUSD and USDJPY also began to lose momentum as profit-taking investors who already continue discounting the resolution to avoid the U.S. fiscal gap. Pressure on policy makers U.S. also increased after the U.S. treasury secretary, Timothy Geithner since the congress that the U.S. government will touch the ceiling of the loan on December 31 that the Department of Treasury must find an additional $ 200 billion in order to provide room for the congress for 2 months before deciding to hike the debt ceiling.

U.S. Home Sales Rise

Monetary easing the Federal Reserve seems to have managed to help improve the condition of the U.S. housing sector. It can be seen from the increased sales of homes (new version of the home) as much as 377 000 units for the month of November; better than the revised 361,000 units the previous publication. However, it is still lower than the estimated 378,000 units. Dow Jones industrial futures are down 10 points after the data was released. Dow is now trading 13 040, try to avoid high levels of daily 13 075.

ECB Will not Loosen Terms OMT

The central bank will implement a requirement for any country that wants to enable OMT bond purchase program, according to ECB officials Luc Coene. "Countries that want the ECB to intervene in bond markets to face the consequences," said the ECB's Coene, who also serves as the Belgian central bank governor.

"If we do not apply the requirement then the ECB may lose credibility and this can complicate things. Central banks can not solve the problem of government debt. Central bank can only give more time for the government to carry out economic reforms in order to resolve the debt," said ECB's Coene when interviewed by the magazine Trends. The ECB has uttered OMT program requirements may include the activation of economic reform policies and the achievement of the deficit targets. Meanwhile, the euro rose on the London session. EUR / USD is now trading 1.3274, the daily high near 1.3283 level.

Reduced U.S. Consumer Optimism


Rampant concerns about the impact of the fiscal gap on the U.S. economy seems to have reduced U.S. consumer optimism. It can be seen from the decline in the confidence index consumerism to the 65.1 level for the month of December. It's worse than predicted 70.0 and 71.5 revised November publication. Dow futures fell after the data was released. Dow is now trading 12980, avoid high levels of daily 13 075.

U.S. politicians are still negotiating to find the best solution to address the U.S. fiscal gap. If U.S. politicians fail to find a solution before the close of the year then the U.S. should be prepared to face tax increases and cuts in government spending can certainly reduce the purchasing power of consumers.

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