According RoyalMaxBrokers , Thursday's session presented a gift to speculators, focused on short-term trading, as turned out to be extremely volatile.It is understandable that when it is taken for monetary authorities - Market sentiment is extremely sensitive and the state of euphoria and fear can quickly succeed each other.
According RoyalMaxBrokers , approximately at 15:00 (MSK) PBOC decided to surprise the market to lower its key interest rate at 0.25% - the first time since the height of the global financial crisis in 2008.Declining economic growth, the negative performance of leading indicators and the expansion of the debt crisis in Europe is not just left to the Chinese choice.It is evident that market participants very positively received this news, and prices of most risky assets shot up sharply.Particularly strong momentum gained commodity assets, as China is one of the largest consumers of raw materials in the world.In a few hours, the oil quotes added almost 2%, copper - 2.3%, silver is also accelerated its growth, which on Tuesday exceeded 5%.
At 18:00 MSK came the head, perhaps the most influential financial institutions worldwide with the US Federal Reserve.After a frank comments yet soft Atlanta Fed President Lockhart and Fed Vice Chairman Yellen, who spoke about the feasibility of increasing incentives to support economic growth, the market was hoping to hear confirmation of this intention on the part of Ben Bernanke.But this time, a bitter disappointment awaited them - in his speech to Congress, Bernanke did not give an explicit signal that the central bank is ready to take new stimulus measures, limiting the promise "to act if necessary."Moreover, at this time, Mr. Chairman emphasized the need for action from the government, which controls fiscal.In the opinion of RoyalMaxBrokers , the two largest planets of the Central Bank - the ECB and the Fed - after three years of monetary stimulation recognize the limitations of their capabilities and calling on politicians to make a decisive contribution to save the economy from the crisis.
Obviously, investors are skeptical of such a promise and began to sell risky assets and, of course, to buy US bonds - the yield of 30-year bonds again updated historical lows.Additional negative and added a message of rating agency Fitch, which has once again downgraded the sovereign rating of Spain - this time to the level of "BBB", giving it a negative outlook.In a report dated 06 June analytical department RoyalMaxBrokers wrote: "EUR / USD is trying to gain a foothold above the upper boundary of the descending channel and overcome the psychological mark of 1.25.In case of a successful course of trading, the next strong resistance level of 1.2620 will make the horizontal. "It is from this level (daily high 1.2625) yesterday began selling the euro, bringing the pair back to 1.2500 again.As you can see, our vision is based primarily on technical analysis, once again justified.
