Asian markets up after the Inflation data while European markets on track for another fruitful day

  Asian markets closed mostly higher after the holiday period, as the concerns among investors eased off that the Chinese financial system is more stable than previously thought and the spike in the inter-bank lending rates also comforted. The benchmark between the banks dropped to 5.06% from its previous spike of 5.33%. The Japanese economy…

EUR/USD- Fell from its resistance as Predicted ; What now?

The EUR/USD fell from its resistance on a  4 hour time frame. This resistance zone was given in our analysis on the 17th of December. The price did break the 100 day (shown in yellow) moving average and now trading near this average which is acting as a resistance. Moreover, the pair is also trading below the 50day (shown in green) moving average which confirms that the bulls are losing their control and the bias could be still to the downside.

European markets higher but volume is thin due to holiday season

 

Asian markets closed up on the first trading of the week by adding to their gains which were made last week. Although, it was a shaky start for the Chinese markets but the confidence among investors increased as the trading session gathered momentum. However, traders are still concerned that the spike in the interbank lending could initiate the cash crunch which we saw over the summer.  Speculation did fade for a brief moment after the Central bank injected $49.4 billion dollar but if this can really work, we do not know the answer of this yet. The banking stock was certainly under the pressure during the session while the overall market grind higher.

The ripple effects of tapering still surrounding the markets

  Tumultuous week for the equity market is coming to an end, during which we have seen the biggest firework of this year- the Fed taking it easy on the tapering paddle. We will wrap up this week with another fairly full day of economic data. The equity market across the globe has made its all time high on the back of the optimism, that the recovery and confidence in the US market has returned, and this why, the Fed were confident enough to start wrapping up their ultra loose monetary policy.