Trade for Today

Look like there is fight going on  between bulls and bears especially for stock markets although US economic news keep coming  good and so did yesterday also but market was unable to keep momentum because of Cyprus scare. As ECB warned it would withdraw a liquidity lifeline to the Cyprus banks if it hasn't reached a deal with the European Union and International Monetary Fund by Monday but look like more or less deal will happen between Cyprus and ECB till weekend .The Cyprus crisis is issue that may have long-standing repercussions in the market. The key point, however, is that no matter what happens, the EU has cast doubt on deposit guarantees throughout Europe and has called into question whether depositors are certain that their funds are safe. From this point on, the depositors of banks in Spain, Portugal, Greece and Italy will regard their funds at risk, substantially increasing the possibility of either a run on the banks or a slow, but steady withdrawal.

At the same time the global economy continues to deteriorate. Both the German purchasing manufacturer’s index and the Euro-area indexes for services and manufacturing unexpectedly declined with much of Europe already in recession. Industrial commodity prices are declining, including the all-important copper index, possibly reflecting a decrease in Chinese purchases of raw materials.However Thursday all trade calls target achieved but apparently we didn't got accurate entry level. 

Following are trade calls for today,

• Sell Gbp/Usd at 1.5215 stop above 1.5275 target 1.5110
• Buy Gold at 1611.5 stop below 1602 target 1636/43

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