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Daily Market Report 09/02/2012

European Shares
Unsurprisingly, markets appear sceptical, refusing to take a clear direction, after the Greek announcements, although the news that came out of the previous session were more notable than what has be seen as of late. The Troika-Greek draft accord was all about the austerity measures that were previously rumoured, but official confirmation makes it far more influential. Truth to be told, there are still issues that need to be arranged before we can say with certainty that a Greek default has been averted and that seems to be the reason that no market response has been seen yet. The FTSE 100, the German DAX and the French CAC have been trading in undecided territory in the past sessions, all comfortably above their 200-day moving average.
FX
After breaking above resistance at 1.3200 the door is now open for EUR/USD to test the next key level around 1.3380. Considering the recent consolidation range of about 200 pips, the pair could reach as high as 1.3450 before the bulls stop for a breather. A break back below 1.3043 is now required to officially allow the bears to take the control. Sterling has enjoyed some good strength against the US Dollar in the past few weeks but GBP/USD can’t quite make it beyond the 1.6000 level. Currency traders will be closely following the European policy announcements later today.

Commodities
Gold can’t seem to maintain any traction above 1760 as it has drifted sideways in the past few sessions. As markets refuse to take direction after the Greek announcements investors appear cautious. At 1.732 this morning a surge above 1.800 could open the door to August highs. To the downside, key level to watch is 1680. Brent enjoyed another day of risk on trade yesterday, as it bashed through $116 and is now trading just below $117.
Today’s Calendar
The economic calendar today is highlighted by the announcements of the BoE and the ECB. Between the two European policy announcements the BoE decision is expected to yield the most tangible change, as the bond purchasing program decided back in October was projected to take four months to implement with investors now expecting a projection of another 50 billion. Back to the Eurozone, the ECB is widely expected to keep the benchmark unchanged, but there is a lot of interest in faltering stimulus at the moment.

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