Greek Parliament Closes For Three-Day Meeting
Online, June 28, 2011 (Newswire.com) - While some speculate that Greece is on the edge of a civil war, one thing is for certain - Greece is definitely on the edge of a nation-wide strike. Public transportation workers in Athens are joining in with others already on strike, while the Greek parliament is beginning a three-day meeting to discuss a budget plan for the next five years (it's hard to imagine what the Greek people are must be thinking about this, since they can be issued five-year lines of credit in an instant).
Meanwhile, speculators are already rushing to cash in on some happy news: in Monday's trading, the Euro quickly won back its morning losses and rose to $1.4245 in about an hour, and then on to 43. It is highly likely that prior to the Greek parliament's announcement about cutting government spending (which should be taken seriously), speculators will heat up the market and push the Euro up on these expectations to $1.4450 and then to $1.4500. Observers also should bank on the fact that the Greek people will likely not accept this decision, which could threaten the entire Greek economy with more stagnation. Deep Trust Trading analysts speculate that it will take at least five years before the Greek people will come to terms with their extreme situation and start to work with redoubled energy to boost themselves and their country back up. In accordance with this, gloomy perspectives are emerging around the Euro - predictions ranging from a complete devaluation to the possibility that some peripheral Euro zone countries might leave, especially those with negative balances of payments comparable to the US's deficit. The EU may leave the international area and cease to exist as a geopolitical entity altogether, in which case, China and the US would take its place. This is the kind of gambit playing out around the Euro right now.
Meanwhile, a fairly interesting technical picture is forming in the market right now. While the dollar is gaining back some of its position, gold is threatening to fall below the recent low of $1465 per troy ounce and a bearish trend may develop all the way down to its 600-day support level which is now at $1400 per troy ounce. Along with this, Deep Trust Trading analysts are questioning how the commodities market in general will react, and particularly, how the price of oil will react. Yesterday, WTI seemed poised to drop below the psychologically crucial level of $90 per barrel, which seems very likely in the near future. The Russian ruble, a prominent commodity currency, may not be able to deter bearish pressure and leave the support level at 28.50 rubles per dollar with a growth outlook in the 2010 range of 28.60 - 31.50 rubles. Another commodity currency, the Canadian dollar, also risks returning to the par of exchange and ending the upward trend it has been experiencing since March 2009 if oil prices continue to decline.
Other events worth watching on the market today will be the publication of finalized first quarter GDP figures for the UK and the US consumer confidence index. Expectations on GDP compared with the previous May assessment (1.8% YOY and 0.5% MOM) did not change, however consumer confidence promises to show a little growth to 60.8 compared to 60.5 in May.
Deep Trust Trading Analytical Department