Greece continues to be the country of the moment as the show must go on... and on... and then some more it would seem. But there has been calls to end the pain and unless Greece commits to any sort of bailout deal the world could crashing down on their economy. Current market sentiment shows that the Euro-zone is willing to work together, however, after the 'No' vote any new bailout is likely to be stricter than the last one and have several large points that Greeks are likely to reject. So with all that in mind we could see a Grexit now more than ever. It would surprise me both parties agree, but with Germany having enough and same with France small talk now just seems a face saving exercise for the inevitable collapse. So while many of you are watching this closely, remember you're watching a train wreck in slow motion, as time is running out.
But with Greece on the cusp, the markets are moving and equity markets are key to many traders during these rough periods. The DAX for the most part has managed to claw back above its 10884 resistance level at present. The market is likely as a result to watching for further bullish momentum. However, with Greece on the edge of the cliff it's likely that the bears will look to take control in the short term horizon.
American markets despite all of the global chaos continue to be strong in the face of it all. Trade balance data out today was stronger than anticipated coming in at -41.9B (exp 42.6B), while on top of this, JOTLS job openings were up to 5.63M; showing demand picking up in the labour sector. This pickup in demand has helped push the S&P 500 higher despite the weakness from the Euro-zone on a global scale. It may have been quite rosy recently for the US economy, but any tanking in European equity markets will have large scale flow on effects in the US equity market and we could see them take a hit there.
The Australian dollar felt further heat today on the back of the Reserve Bank of Australia cash rate announcement, which left the cash rate flat at 2.0%. While many predict that the RBA may have looked to ease its current cycle, it seems unlikely as the general view from the RBA is that the trade weighted index is far too high, especially with falling commodity prices. The bears will be watching this but it may take some time yet for further moves lower. Certainly if there are any further falls I would be watching the 0.7304 level which is likely to act as the next probable level of support.
Japanese trade balance data has been surprising as of late, and today's reading of -47.3B show that there is some improvement in the economy and plenty of hard work. Traders looking to move this pair on the USDJPY will be focused around the 122.394 support level which continues to act as a major level for any traders. If we see further Greek pressure the bears will rush back in and buy up the safety of the Yen as the Euro falters.
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