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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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European Stress test results to be announced at 5pm London time

Article By: ,  Financial Analyst
July 15, 2011 4:18 PM
Impact of Bernanke’s comments on the S&P 500
Fed Chairman Ben Bernanke back-tracked his previous day’s comments on the possibility of QE3. “We are not prepared at this point to take further action”. The S&P 500 followed Moody’s in placing the US on negative watch, citing the increasing risk of US policy stalemate and they even set a time limit of 90 days. The Obama administration used this latest warning to reiterate the need for Congress to ‘act to avoid default as President Obama becomes increasingly agitated with the lack of progress’.
EUR/USD
Range: 1.4095-1.4199
Support: 1.4050
Resistance: 1.4200
Today will be all about the results of the European Banks stress test. Now I’m not quite sure whether or not releasing these into the markets at 5pm London time is a smart thing to do as market liquidity will be at a premium. There are media reports today that 10 out of the 91 banks tested have failed the test, which requires at least 5% Tier 1 capital. Investors may look to trade the range and save energy for 5pm after a very long and volatile week for this pair.
GBP/USD
Range: 1.6134 – 1.6173
Support: 1.6105
Resistance 1.6200

 

Sterling is consolidating between 1.6100 and 1.6300 as focus on the market is not UK-related, with headlines from Europe and the US dominating proceedings. There is no data or speeches scheduled for today so for me trade, the breaks are at 1.6095 or 1.6205 as this pair will be dragged by US data and the results of the European stress tests.

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