Dow Closes Above 13,000

Dow Closes Above 13,000

Port Louis : Mauritius | Feb 29, 2012 at 5:15 AM PST
Views: Pending
EURUSD, AUDUSD and S&P 500 All Rally to Meaningful Resistance

Federal Reserve Chairman Ben Bernanke will speak today in front of U.S. Congress. While the Fed has pledged to keep interest rates low until late 2014, markets will be watching Mr. Bernanke to see if his views conflict with the announcement. Several Fed policy makers have commented that the Fed might change its mind on the 2014 date. We are also expecting the preliminary estimate of the fourth quarter GDP. Estimates suggest that the U.S. economy expanded 2.8% in the last quarter of 2011. The Durable Goods order report came below market expectations as orders fell 4% in January. Excluding defense orders, durable goods orders fell 4.5%. This was the biggest drop in Durable Goods orders in the last three years. The drop in orders was attributed to an expiration of tax break for businesses. Consumer confidence on the other hand reached a twelve month high with the consumer confidence index rising to 70.8 from 61.5. The Dow closed above the 13,000 level for the first time since 2008. The breakthrough in the Dow was attributed to fall in Oil prices and the surging consumer confidence number. Support for the USA30 is seen at 12,750 and resistance is seen at 13,100.The EURUSD rallied 80 pips higher on yesterday’s trading in anticipation of the LTRO auction. This is the second long term refinancing operation (LTRO) to be carried out by the European Central Bank. Markets are waiting for the size of today’s auction to be announced. Initial estimates suggest that European banks are expected to borrow around 500 billion Euros. In December a total of 489 billion Euros was loaned out to Euro zone banks at a refinance rate of 1%. We expect markets to be disappointed if the total amount loaned out is less than the previous amount. More money borrowed from the ECB translates to better peripheral debt performance. Risk sentiment will be bolstered if the auction is deemed successful. The first auction held in December was credited for preventing a credit freeze and flooding the markets with liquidity. More than 500 banks took advantage of the three year loans announced by the ECB President Mario Draghi in December. Support for the EURUSD is seen at 1.3200 and resistance is seen at 1.3500. The Inside View indicator on HotForex shows that 65% of traders are short on the EURUSD.Australia reported that retail sales grew 0.3% in January. Retail sales sector has struggled in recent times with a 0.1% drop in growth in December. Economists predict that the retailers will continue to struggle as they face increased competition from online retailers. Retail sales in 2011 were the weakest recorded since 1984. The AUDUSD broke its range and traded above 1.0800 despite the lackluster report. Support for the AUDUSD is seen at 1.0650 and resistance is seen at 1.0850. The Inside View indicator on HotForex shows that 51% of traders are short on the AUDUSD.HotForex Category 1 Global Business No. C110008214 License. HF Markets Ltd." trading as "" is a tax resident in Mauritius.Trading in Forex Exchange and CFD's involves risks that may not be suitable for anyone. Independent advice should be sought if necessary. HotForex Ltd


hotforex is based in Larnaca, Government controlled area, Cyprus, and is a Reporter on Allvoices.
Report Credibility
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear

News Stories

  • Bernanke Says Economic Recovery Still Spotty

      Epoch Times
    Federal Reserve Chairman Ben Bernanke warned that economic growth and job growth will remain sluggish for years. The Fed Chairman gave his semiannual update to the House Financial Services Committee on Wednesday, and reiterated the need to keep...
  • US Markets Get Ready to End a Very Long Month

      International Business Times
    Text Size U.S. stock-markets started slightly up after reports showed that  the U.S. economy grew more than expected and worry about the European Central Bank's refinancing operation and awaited economic data and testimony from Federal Reserve...
  • Bernanke notes economy better than expected

      Seattle Post Intelligencer
    Chairman Ben Bernanke told lawmakers Wednesday that the economy has performed better in recent months than the Federal Reserve had expected. If the trend continues, he said the Fed might have to reassess its outlook for a slow recovery. Investors...
  • The Fed: Bernanke sees ‘different signals’ from economy

    The recent improvement in the unemployment rate has put the Federal Reserve on alert and watching incoming data closely, said Federal Reserve Board Chairman Ben Bernanke on Wednesday. It will be especially important to evaluate incoming information...
  • Gold Plunges After Bernanke Suggests Further Stimulus Unlikely | March 1, ...

      International Business Times
    Text Size The Australian equity market is pointed to a soft start to the trading day after US stocks slide on a Fed report t hat suggested the end of US stimulus. The Dow finish the session down 53.51 points at 12951.61 while the S&P500 index traded...
  • Cash-tight consumers to hold back growth: Bernanke

      The Economic Times
    Slow consumer spending and the depressed housing market will keep US growth this year at a sluggish pace of around 2.25 percent, Federal Reserve chairman Ben Bernanke said on Wednesday. Bernanke also said that the recent rise in oil prices will push...



More From Allvoices

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.