Uncertainty around Greece keeps investors in trenches
Daily Market Review – 28/05/2015
Asia closed to mixed results; the Japanese Nikkei index added 0.7% and a new 15-year high. This rise was due to weak Japanese yen (JPY), as Japanese companies get a competitive advantage with weak currency, as their economy is export-oriented. The Chinese Shanghai index broke its eight-session winning streak loosing 1%, but it seems nothing like recent gains.
Europe remains unsure about Greece. Talks between Greece and its lenders continued in Brussels on Wednesday, with the Greek government saying it’s looking for an agreement with creditors that would open the way for aid. Both European Commission Vice President and German finance minister said they were surprised by positive tone from Greek officials.
Meanwhile, at the Group of Seven (G7) meeting of finance ministers and central bank chiefs, Greece was the number one topic of discussion, as were talks over the rebuilding of economic growth. Meetings will continue until Friday.
Another unexpected day on Wall Street, with indices closing on their highs after a big down day. No commitment from sellers. Technological index Nasdaq led US markets, posting gains of 1,5%. Buyers remain in the game and appear unwilling to give up. The SPY formed two-days bottom 210.20 and 210.76 versus which you can trade on the long side. A break above 213 will open doors to highs 213.78, breaking off that shouldn’t be a problem.
The EUR/USD pairing formed a reversal candle near support 1.08 after big drop down over the last two weeks. Today should bring some continuation to the upside. There is a big chance that bottom 1.08182 is in place and we will see some type of correction at least to 1.10100-.600.
The USD/RUB attracted our attention after a break of the descending trend-line at 50.60. But confidence will only increase with further proof, which could be a break above 54. If buyers want to keep control there, the price shouldn’t drop below 48.80.