Forex: German Short Sales bans for the welfare of Euro zone

Wednesday, May 19, 2010

German Government had announced about the selling of short shares to the ten most important financial institution of the country. This can be seen as the hopeless way to protect the euro zone from the debt crisis from the erratic market attacks. DOW falls for - 100 points after the gain earned earlier. Gold seems to be rebound and now it is back trading at 1220 level above. Crude oil is trading against 70 point and reaches at low of 68.91. Dollar is on high and reached to level of 87. The currency pair EUR/USD is continuing on low of 1.2233 point.

Now technical analysis says that- EUR/USD fall below 1.2233 will ensure the decline leads to the 100 percent projection of 1.3691 to 1.2526 and next level predicted should be 1.1928. USD/CHF fall at 1.1447 and ensures rally resumption to the projection of 161.8 percent. AUD/USD also reaching to the the key support level of 0.8577 from the starting of this week. USD is at high position from the starting of the week at the level of 87 point and not it is heading towards the high of 2008 that is of 89.62.

Earlier it is seen that Forex market are trying to stabilize as EMU minister Olli Rehn announce that the countries that belongs to the euro zone debt crisis like Greece, Spain and Portuguese are only needed to have debt cuts in their budget and to maintain the Global economic growth. After getting 14.5 billion funds of EURO the Greek bond enact a rally for repaying the 8.5 billion of EURO bond that are dues.

There was a sharp fall is seen in German currency ZEW by rising at April and fall in May from 53.0 to 45.8 level. The fall also seen in euro zone ZEW drop down from 46 to 37.6 level. President of Germany says that there is seen some uncertainty at the rising of ZEW due the measures taking steps forward by combining the public budgets. The euro zone fall is also an important factor that has given rise to the uncertainty among major currency in forex market. The further development of EURO zone will lead also leads to the market uncertainty.

The latest news that has came from the US housing data is raising more than as expected and reaches to the high of 672k, the highest annualized rate since 2008 October level. As the USD is going high this leads the Forex market into the consolidate mode. The major Forex currency pairs are snugged but there is a high seen in the crude oil from 70 level to rise at 72 level and also the gold is touching the high level at 1210 points. Where as the US stocks opens in mild range in the morning and heading to reach at the strong level overnight.

UK latest update is that the inflation rate CPI jumped to the 3.7 percent as expected in April month and also it reaches at the highest in 17 month. RBA was considered in a pause state as the rate hikes in the May month and leads to the uncertainty in the euro zone area. The EU members discussed in the meeting about the disturbances seen in the forex online market is due to the sovereign debt rescue plan for the euro zone welfare. Australia market does not involve much in the direct impact of the Greece debt crisis. The Central bank of Australia has announced to give rise to the sixth time the policy interest rate. Aussie heads to a three month low after the pause rate hike in RBA.

The latest update of USD/JPY currency pair is that it reaches the level of 91.75 already. The currency is breaking of at the rate of 93.62 and then rising from the level of 88.25 after getting the resistance at 94.87 point. On the downside it can be said that if the level reaches below 90 then there will be a possibility of decline to 90.86 level. Market is trying to overcome from the financial trouble and hoping for some good results in coming days from the Forex market.

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