EUR Under Pressure; Crude Oil Facing Correction?
February 9th, 2010 Posted in Daily Forex News
The EUR persists in weakening as credit problems in Greece continue to take their toll on the Euro-Zone economy. Greece’s belt-tightening program didn’t seem to carry the desired effect and many central bankers in the region expect these debt problems to continue pushing down on the 16-nation currency. Additionally, Portugal’s recent decision to increase the government’s spending powers had a destabilizing effect on an already weakened European market.
Today’s leading events:
9:30 GMT: GBP – Trade Balance
Today’s economic reports are less than moving, and the only indicator which seems to have relevance to today’s volatility is Britain’s trade balance figures. This indicators represents the difference between imports and exports and has a correlation to the demand of the local currency.
This figure is expected to show that the UK has slightly narrowed its trade deficit, but not by an amount which will cause a stir in the market. However, if this indicator can indeed surprise traders, we could see the GBP respond to positive results with a bullish movement, and vice versa with negative results.
Crude Oil Trading Tip
On the 1-hour and 4-hour charts, the price of Crude Oil is showing a consolidation trend around the $71.50 price line. The daily chart’s Stochastic (slow) has an impending bullish cross and a fresh bullish cross has just formed on the hourly Stochastic (slow). The weekly chart’s downward move also has a doji candlestick forming. It appears that the technical charts are hinting strongly at an impending bullish movement in Crude Oil.
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Tags: Commodities, Crude Oil, EUR, Euro, Forex, forex daily tip, GBP, Pound, spot crude, spot crude oil, spot oil, Sterling, Trade Balance, trade deficit
