Daily Market Review 8 of May
OVERVIEW

Yesterday trading was quite reserved and we saw a correction against the Dollar and partial closure of Monday gaps. It suggests that Europeans and Americans didn’t rush to try to take an advantage of the risks related to Hollande election in France and Greek elections. By the way another Greek official resigned: the prime minister of Greece Lucas Papademos. Now the question is whether the new government will fulfill the obligations of the previous one. The results of French elections were quite expectable. But the outcome of Greek elections turned out to be uncertain. Some analysts presume that the probability of new elections in Athens is quite high as there are no signs of coalition forming there. Taking to consideration the political situation there are doubts in further financing Greece by EU and that will definitely put pressure on the markets at least in the short run. The results of elections in France and Greece won’t give any support to the Euro. The combination of weak macroeconomic data from Europe and the political stress apparently will continue to make Euro decline.

CURRENCIES

EUR/USD

Yesterday the Euro grew a little against the US Dollar. The risk of testing the lower boundary is resumed. If the support at 1.3000 is broken and turns into Resistance the pair will most likely move in the direction of 1.2550.



GBP/USD

Yesterday the Pound grew against the US Dollar. The upward goals are 1.6435 and 1.6590. But in order for this scenario to be realized the factors that might support the British currency are necessary. But at the moment there are no strong factors of that kind. The upper limit is at 1.6305. The support is around 1.6080.