{"id":3114,"date":"2009-07-28T12:57:54","date_gmt":"2009-07-28T17:57:54","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=3114"},"modified":"2009-07-28T12:57:54","modified_gmt":"2009-07-28T17:57:54","slug":"eurusd-slumps-after-sluggish-earnings","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/28\/eurusd-slumps-after-sluggish-earnings\/","title":{"rendered":"EUR\/USD Slumps after Sluggish Earnings"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD is logging sizable losses today after BP and U.S. Steel issued disappointing earnings releases.\u00a0 The EUR\/USD has dropped beneath our 2nd and 3rd tier downtrend lines on moderate volume.\u00a0 Both commodity-related earnings releases worry investors that production and consumption may not be picking up as much as analysts hoped.\u00a0 The most disconcerting is U.S. Steel\u2019s cautious outlook for Q3, denting projected near-term aggregate demand and consumption.\u00a0 Also weighing on the EUR\/USD is a weaker than expected CB consumer confidence number from the U.S.\u00a0 Since the EU has no data on the table today, the EUR\/USD is taking its cue from U.S. equities.\u00a0 Therefore, the EUR\/USD has little positive immediate-term catalysts to rely on.<\/p>\n

Despite today\u2019s weakness, the EUR\/USD remains comfortably above 7\/23 lows and our 1st and 2nd tier uptrend lines.\u00a0 Additionally, the EUR\/USD hasn\u2019t experienced any abnormally high volume on the sell-side so far today.\u00a0 Therefore, the currency pair\u2019s present uptrend is intact.\u00a0 The EUR\/USD is finding strength in yesterday\u2019s GfK Consumer Confidence number coming in well above analyst expectations, continuing its upward trend while highlighting a more optimistic European consumer.\u00a0 The consumer confidence number adds onto Friday\u2019s better than expected PMI data points, helping counterbalance the negative pricing and production numbers from earlier last week.\u00a0 The EU also released its M3 money supply on Monday.\u00a0 Though the headline number came in line with analyst expectations, the money supply continues its downward trajectory.\u00a0 This means that the ECB will be less inclined to begin tightening its monetary policy any time in the near future.\u00a0 However, the decline in the M3 money supply could be slowing down, creating the possibility of a new base.<\/p>\n

On another encouraging note, the bond spreads between EU countries are narrowing, indicating that uncertainty is abating concerning the near-term stability of the troublesome economies of Ireland and Greece.\u00a0 If the weaker economies of the EU region can continue to stabilize, this could have a positive near to medium-term impact on the Euro.\u00a0 Improvement within the smaller economies of the EU could also indicate that Eastern European economies may begin to notice signs of improvement as well.\u00a0 This would be a key development for the Euro since shortcomings in Eastern Europe have inflicted damage on EU banks exposed via high risk loans.\u00a0 Therefore, the medium-term picture is gradually improving for the EUR\/USD.<\/p>\n

Regardless of the medium-term picture, the EUR\/USD should continue to take its immediate-term cue from U.S. equities.\u00a0 Hence, investors should keep a close eye on the S&P future to monitor their ability to hold together above our 2nd tier uptrend line.\u00a0 Meanwhile, the EUR\/USD still has July 23rd lows and our uptrend lines to rely on.\u00a0 As for the upside, the EUR\/USD must face our 2nd and 3rd tier downtrend lines along with the lid constructed from 7\/21-7\/28 highs.<\/p>\n

Present Price: 1.4178<\/p>\n

Resistances: 1.4183, 1.4197, 1.4215, 1.4234, 1.4250<\/p>\n

Supports: 1.4157, 1.4142, 1.4117, 1.4094, 1.4078<\/p>\n

Psychological: 1.40<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD is logging sizable losses today after BP and U.S. Steel issued disappointing earnings releases.\u00a0 The EUR\/USD has dropped beneath our 2nd and 3rd tier downtrend lines on moderate volume.\u00a0 Both commodity-related earnings releases worry investors that production and consumption may not be picking up as much as analysts hoped.\u00a0 … <\/p>\n

Continue reading “EUR\/USD Slumps after Sluggish Earnings”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3114","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=3114"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/3114\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=3114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=3114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=3114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}