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08.06.2012 06:26 PM
Skepticism and pessimism, what is happening? - Fundamental Analysis for June 08/2012

Different versions regarding the European debt crisis in financial markets run through the Friday session.

There is speculation that Spain could finally turn to the European Union to apply for a bailout that gives relief to their troubled banks. There are also rumors that Italian banks are about the same level of Spanish.

Meanwhile, over time, come the elections in Greece, and the teams mented to develop a new scenario without the Hellenic country in the eurozone do not reach any conclusion. In other words, on Monday, June 18 the market will be more moved, right?

In this context, deflated the relaxed atmosphere that brought the markets during the week after the presentation of Ben Bernanke, who not only referred to the plans that the Fed could implement in the local economy, call it QE3 (colloquially, putting money into markets to provide liquidity to an economy that costs too much to grow), but also to the European crisis, which the official is likely to explode soon, and that splash of full United States, Japan and the rest of Southeast Asia.

His habitual skepticism and pessimism share market gave a dye similar, although the Dow managed to close on Thursday with a small profit, the future of that now operate with relatively low key.

The currencies also felt the impact of Bernanke's words, and even the increase in exports from Germany, almost twice than expected, managed to change the course bearish the euro, which was emerging from the Asian session, when the price was supported by 1.2525 trendline.

The single currency has a picture certainly not encouraging to observe long-term charts. The uptrend line on the monthly chart, which extends from the end of 2001, has been broken at 1.2620, not coincidentally most of Thursday, and from where he began a rapid decline, which is maintained at these times. It is true that you have all month to reverse this low, and the overcoming of that area would make the crossing mentioned a false alarm. But this breakdown is confirmed, the area of 1.20 will soon appear on the screens.

In the short-term the euro situation is similar, though more moderate, of course. The area of 1.24 appears as the support, under which will be the next target 1.2330.

The British pound also fell at these times, in this case driven by a weak wholesale price index in the UK, which marks a 2.5% deflation, if any sensitive data in an economy that fails to even out clearly recession, and monetary policy which, through the BoE, seeks to stimulate it with asset purchases that seem a drop in the sea.

The lower oil prices, meanwhile, more than $5 within 24 hours, causes a further fall of currencies linked to it, such as the Canadian dollar and Mexican peso. The same applies to the Australian dollar tied to gold, totaling a loss of $86 in 3 days.

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