Japan’s Intervention Fails for the 3rd Time in a Year
The Japanese Intervention to weaken the Yen has once again failed for the 3rd time in a year. The USD/JPY hit the 76.32 low so far, pips away from the all-time low of 76.25. My previous articles mentioned that the Japan’s intervention will once again be a failure, due to investors looking for safe-haven currencies; other than the U.S dollar and Euro.
Dollar Crumbles as Obama Fails to Win Any Friends with State of Union Speech
EUR USD Fails to Close above 1.40; Forms Reversal Top
The EUR USD closed below 1.40 for the week, taking the air out of some analyst forecasts for a move to 1.45. The outside move closing price reversal top could also be indicative of the start of a substantial correction. It all depends if there is follow-through selling next week and if the market can hold the last swing bottom on the daily chart at 1.3775.
June E-mini S&P 500 Fails to Confirm Friday’s Reversal Bottom
Euro Fails to Gain Traction; Short Hedge Funds Won’t Budge
The Euro finished lower on Wednesday. Now that credit concerns in the Euro Zone have been taken care for the short-run, investors are becoming worried about the possibility of a slow down in the economy. The size of the new bailout package is expected to have an impact on the Euro Zone economy which may result in a double-dip recession.
The Euro remains under pressure this morning after the announcement of the $146 billion aid package for Greece failed to calm investors and restore confidence to the Euro Zone. Traders are reluctant to throw their support behind the Euro because of lingering problems in Spain, Ireland and Portugal.
Gold giving Mixed Signals; Weak Dollar fails to Generate Long Interest
June Gold struggled throughout the trading session despite the weaker Dollar. Traders seemed to be adjusting their long positions now that it appears the demise of the Euro has been overstated. Earlier in the week, speculators drove up gold as they hedged against the possibility of a of a Euro collapse.
Stocks Recover after Obama fails to Scare Investors
U.S. stock markets surged following early weakness after President Obama failed to reveal any new plans to regulate U.S. financial markets. On the opening stocks were down because of escalating Greek debt problems and fear that Obama would announce more austere financial market restrictions.
Major Currencies Falter as European Union Fails to Deliver Greece Decision
All major currencies are down versus the U.S. Dollar overnight after the European Union failed to deliver a resolution to the Greece sovereign debt problem. Yesterday, currencies led by a rally in the Euro, pressured the Dollar on hopes that the EU and Greece would reach an agreement regarding loan guarantees to ensure Greece would not default on its sovereign debt.