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27.07.2012 04:46 PM
Fundamental Analysis, for July 27, 2012

 

The data on durable goods orders on Thursday slightly added encouragement to the U.S. economy as most of the statistics was disappointing.
Of course, the contrast was due to the pending home sales which fell below expectations, but this did not prevent the New York trading day to end with gains.
They not only come from the hand of the mentioned positive factor, but rather from Europe, where new signs of the euro survival were issued by Mario Draghi, Chairman of the ECB.
There were no other signs during the day, so the euphoria cooled down in the early hours of Friday. The Asian markets did not provide clear trends, and the European session on Friday is looking for definitive course.
The same happens with currencies. The euro has just passed the area of ​​1.23 again, but holding onto it and continuing an upward trend which was started in the morning of Thursday. Only the break of 1.2330, very strong resistance and the high touched yesterday may extend gains of the single currency.
As for the British pound, it has recovered more from its last week low, so it seems that it might follow an upward direction in the coming hours, although in a much more moderate pace than seen Thursday.
The rest of the coins are left without major changes, with the Australian dollar reached a new peak since 1 May, and the Canadian dollar trying to break 1.0065 support, the passing of which would open the door to parity against the dollar.
The yen is left unchanged, as well as crossed pairs. Nothing seems to bring to JPY lateralization today.
The advanced U.S. GDP (first of three measurements) for the second quarter will beat the markets. The measure is expected with growth of 1.5%, compared with 1.9% last year in the same period. This fact undoubtedly generates noise in the bags, and eventually gives definite trend this Friday.

 

 

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