Market back to pre-results levels ~ Forex Special

Friday, July 23, 2010

Market back to pre-results levels

Forex Special (Córdoba) – The Dollar is trading near the same price level it had before the release of the Eurozone stress test results. Yen crosses are slightly lower but continue to trade near daily highs. Stocks in the US are testing daily highs in Wall Street.

EUR/USD is hovering around 1.2860 after being rejected from levels below 1.2830 and also from levels on top of 1.2400. GBP/USD is back above 1.5400, trading at 1.5410. USD/JPY continues to move in a range between 87.15 and 87.45.

“The aggregate results suggest a rather strong resilience for the EU banking system as a whole and may appear reassuring for the banks in the exercise, although it should be emphasized that this outcome is partly due to the continued reliance on government support for a number of institutions. However, given the uncertainties over the actual path of the macro-economic recovery, the result should not be seen as a reason for complacency”, the Committee of European Banking Supervisors said.

The Dow Jones is rising 0.40% and the Nasdaq gians 0.26%. Gold pulled back below $1,190 after the report and fell to fresh daily lows at $1,188.