Monday May 17, 2010 - 20:09:05 GMT
Share This Story
Forex Hound - www.forexhound.com
Stocks under Pressure; Traders Worried about Future Earnings
U.S. equity markets are
under pressure at the mid-session but mounting a slight recovery off
its earlier lows. The weaker Euro was the catalyst behind the break.
Investors are becoming concerned that the weakness in the Euro Zone
will have a negative effect on future corporate profits. Early in the
session, the June E-mini S&P 500 tested a key 50% level at 1115.50.
Although downside momentum took the market through this price level,
the mid-session recovery could trigger a short-covering rally into the
Despite sharply lower equity markets, June Treasury Bonds
are trading lower at the mid-session. Overbought conditions and
oversupply could be the main reason for the weakness. Retracement zone
resistance is at 122â€™05 to 122â€™22. This area stopped the rally today.
Gold is trading flat despite the stronger Dollar. Last Fridayâ€™s closing
price reversal is helping to limit upside action. The chart pattern
suggests that once this reversal top is confirmed, the market could
correct back to $1203.00 to $1192.00.
The weak Euro and the
prospects of lower demand for crude oil helped drive June Crude Oil
under the February bottom at 70.75. A close under this level is likely
to keep the downside pressure on this market.
to keep pressure on the June Euro. The lack of confidence in the
European Union continues to remain the major reason behind the selling.
Investors want clarity not just ideas from the EU. Although the Euro is
trading off its low, hedge funds and large traders remain in control of
the short side. Regaining the â€śLehman Lowâ€ť at 1.2329 could trigger a
short-covering rally late in the session.
The June Swiss Franc
is trading lower. The divestment out of the Euro is putting strong
appreciation pressure on the Swiss Franc. The Swiss National Bank fears
that continuous selling pressure will hurt price stability and put the
Swiss economy at risk. The main concern is damage to the export market
will stall the economy. SNB President promised to act in a decisive
manner which could mean another round of interventions.
British Pound remains under pressure. Talk is circulating that the
previous government pushed through spending measures which will make
the new governmentâ€™s attempts to cut the U.K. deficit and balance the
budget more difficult. Pressure is likely to remain on the British
Pound as the new government is likely to propose severe budget cuts and
tax increases which could put a strain on the economy.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."