EU: Bull still not clear, need to be patient. Showing sign of further dive.

German constitutional court set to rule on bailout legality, UK industrial and manufacturing data could prompt further dovishness, Australia Q2 GDP, Bank of Japan leaves rates unchanged.

The crisis in Europe remains at the forefront of investors concerns today as the German constitutional court begins its deliberations in ruling on the legality of the Greek and other bailouts in 2010, Any ruling that that states the bailouts are illegal would throw Europe into absolute chaos. The expected outcome is likely to be along the lines of attach a number of firebreaks or safeguards to any new bailouts by way of giving the German parliament stringent vetoing rights with respect to the release of any new bailout funds. But even the best case scenario will no doubt complicate further an already cumbersome mechanism.

In the UK, despite last night's speech by the Chancellor reassuring that the UK recovery remains on track despite recent weak data, concerns remain about the state of the UK economy, as evidenced by yesterday's disappointing BRC retail sales numbers. These fears are likely to increase this morning if July manufacturing and industrial production data show further signs of slowing down or contracting further in the case of the industrial production data.

June's industrial production data came in flat on a monthly basis and down 0.3% year on year and though July's number is expected to rise 0.2% the year on year number is expected to slip further to -0.4%. Manufacturing production is set to be slightly more positive improving on a monthly basis from -0.4% to 0%, though the annual figure is expected to slip from 2.1% to 1.9%.

Weak numbers will once more increase the pressure on the Bank of England to embark on more QE at tomorrow's rate meeting, an outcome which at this moment seems unlikely despite some speculation to the contrary.

Australia Q2 GDP has continued to recover after the negative figure in Q1 and has been able to shrug off all the declines from the Queensland floods. The number appears to support yesterday's actions by the RBA in keeping interest rates on hold for the time being, as Q2 GDP rose 1.2%, above expectations of a 1% rise while the previous figure was also revised up from -1.2% to -0.9%. These figures suggest that the Australian economy remains a touch more robust than had been initially feared.

The Bank of Japan left rates unchanged as expected, early this morning as the yen gained some ground overnight after the surprise intervention by the Swiss National Bank caught markets on the hop. The amount of stimulus was left unchanged as the bank looked to assess the effect of the measures taken at the last meeting. Yesterday's yen weakness on the back of this move appears to have been a reaction to fears that the Bank of Japan may well follow suit.

On 6 September 2011 the Swiss National Bank set a minimum exchange rate of 1.20 francs to the Euro saying "the value of the franc is a threat to the economy",[12] and that It was "prepared to buy foreign currency in unlimited quantities.”. In response to the announcement the franc fell against the euro, to 1.22 francs from 1.12 francs and lost 9% against the USD within fifteen minutes.

The largest fall of the Swiss Franc in living history. This has effectively ended the safe haven status of the Swiss Franc, because all traders now know that the Swiss Franc will NEVER go below 1.2 to the Euro.

Now the down move in EU but the bull is at the corner. Beware!!

1.3985 might be the turning point for bull to take over from bear. lets keep on waiting folks. market seems to have turned upside @ 1.4025

If the SNB keeps buying Euros, this will drive up the currency against other pairs. So Euro shorters, beware!

the bears are back to eu

stagger:

If the SNB keeps buying Euros, this will drive up the currency against other pairs. So Euro shorters, beware!

But again, the SNB move does not solve the underlying problem. If traders short the EURCHF massively in a safe haven move, that 1.2000 peg will require an unimaginable pull on the Swiss foreign reserves to buy off Euros and Dollars to sustain it. If the SNB is stretched to the limit, will we see a collapse of that peg?

The rest of this year in the Eurozone is a very interesting scenario!

Looks like Liteforex has finally come to an end in Nigeria!

^
wats eu tradings @ am not on seat, have been long since yesterday.

Zeddicus:

Looks like Liteforex has finally come to an end in Nigeria!

why would you say that

@aguiyi
bro wats eu trading @?

its been confirmed. liteforex office in Nigeria is closing down due to some disagreements between the Nigerian rep and the HQ company and some perceived sharp practices.so if you have funds in liteforex,you are advised to withdraw it or trade at your own peril.see liteforexng.org for more details .

blackgucci:

@aguiyi
bro wats eu trading @?

presently at 1.4015 (the bears are in charge,check ur 4h and daily charts)

^
thnks bro

This seems time to believe in the bull.

blackgucci:

^
thnks bro

you are welcome sir

Concept:

This seems time to believe in the bull.

thread cautiously

see the currency strength meter on that chat, eur is only stronger the franc ,why would i want to buy such a currency instead of selling it or wait for it to gain strength, anyways, you may be seeing what am not

^ Don't use a single TF to make your decisions. Anyone looking at the 4H TF would automatically assume it's bearish but the daily chart suggests that the support at 13380 is holding for now. I went long last night because of an intraday close above the support are at 1.3398 and I'm currently 50 pips in black, although there was a rather big swing of around 130 pips earlier on.

aguiyi:

thread cautiously

see the currency strength meter on that chat, eur is only stronger the franc ,why would i want to buy such a currency instead of selling it or wait for it to gain strength, anyways, you may be seeing what am not

I am so much in love with this currency meter. Brilliant! friend I will be at alert. Albeit, it might not be the best timing but bull is knocking and this is where the currency meter can really help.

naijababe:

^ Don't use a single TF to make your decisions. Anyone looking at the 4H TF would automatically assume it's bearish but the daily chart suggests that the support at 13380 is holding for now. I went long last night because of an intraday close above the support are at 1.3398 and I'm currently 50 pips in black, although there was a rather big swing of around 130 pips earlier on.

dont get those levels from here.
currency strength meters are not time frame dependent.

[img]http://rt.etxcapital.it-finance.com/ETXCapitalFlash/itcharts.phtml?key=fbaf3dfd2569ebd290902017c5ccfe6a&uid=72ab54f9b8c11fae5b923d7f854ef06a&id=150853&language=en_GB&helpicon=t,f[/img]

aguiyi:

dont get those levels from here.
currency strength meters are not time frame dependent.

Don't know if that image shows or not but like i said I have a support at 14002 (+ or 20 pips) which held yesterday. Goes back to March this year

If I can have my 3 stochastic and MACD crossing upside in higher time frame, the temptation to buy is irresistible.

Ok guys, here is my second trading room, i still use it for fun two like FSX, are we there yet?

rather a GIS room lol. @odia

SORRY FOR pop in
@ odiaero, are u a pilot?

if this is a trading room for forex ? then i give up

_{where do i start from?}