The Advisor Weblog

Posted: 31 May 2011 03:28 AM PDT

Hi everyone and welcome! Against my expectations and despite quite disappointing figures early Europe, the Euro is showing an impressive strength against its rivals, steady around 1.4400 against dollar and above 117.00 area against yen. Strong recovery in stocks since early Asian opening, and commodities, may be reason of this run, yet also the fact that Germany capitulated to demand further tightening and restructuration, along with geting ready to provide more loans. No matter what politicians say, but what they do. Germany can't afford Greece or any other troubled economy leaving the euro zone, as that will recude Euro value and credibility, to zero.

Still I really wasn't expecting EUR/USD reach 1.4400, and on contrary was expecting GBP to extend gains which didn't happened.

If EUR/USD manages to hold around this area, may extend gains towards 1.4440 before jumping towards 1.4500. Supports today, come at 1.4365, 1.4320 and 1.4270 area.

Pound still has chances of extending gains, yet now we need to overcome 1.6540 daily high to reach 1.6610 level. Supports for the pair are locatd at 1.6480 and 1.6445.

Here is the link for today's calendar:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great trading day!