Markets across the globe and Euro are cheering up after Cyprus deal but actually it's alarming and it's alarming for wealthy people around world especially in Europe. This unique deal has open new path for troika. We have seen again that the Euro zone is unable to deal rationally with its problems. This has got to be the most incompetent handling of a Euro crisis event so far, but underlines the hopeless situation the 17 countries that share the common currency are in. The panic is so great that no step is too extreme to preserve the doomed project and to defend the political capital invested in this monumental failure. That we have already come to a stage where politicians blatantly attempt to confiscate innocent and weak citizens’ savings is a new low that was somewhat unexpected already at this point. It bodes ill for what can happen when the crisis deepens in the future.
This week Eyes will be on US GDP data which will probably give direction to Stock market. We expect the final GDP figure for 4Q12 to increase slightly due to upward revisions and weaker than expected headwinds. International trade was likely the most important revision since the last GDP estimate. There is also room for additional upward growth as headwinds seem to have been less impactful than previously expected from the fiscal debates toward years end. Most data from December from both manufacturing and the private sector pointed to growth rather than the anticipated slow down expected from the looming fiscal uncertainty.
Friday's our call on selling Gbp/Usd and buying spot Gold still on after gold flirted with stop loss but unable to hit sowe are looking forward for both trade to achieve target today.
Following are trade calls for today,
- Sell Usd/Chf at 0.9430 stop above 0.9480 target 0.9360
- Sell Eur/Jpy at 123.75 stop above 124.50 target 122.60
- Sell Crude Oil May at 94.20 stop above 94.98 target 93.40
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