Greece to present new austerity package today
FXstreet.com (Barcelona) - The Greece government, still in despair trying to find new ways to cut public spending, will present a new austerity proposal to parliament on Monday. In the proposal, it will be key to win enough acceptance if the country is to comply with the Troika requirements and not put at risk a still 'doubtful' next aid tranche worth over EUR 31.5 billion. The country faces a new week with tensions in the street escalating fast, with plans of strikes and protests. A 2-day strike against the next austerity bill is expected on Tuesday, with marches through Athens' city centre taking place. Greek parliament will be voting on an austerity package mounting 13.5 billion euros, mainly aimed at tax hikes and more flexibility for firms to enroll people on temporary labour contracts and make them redundant.
"These will be the last cuts in wages and pensions," Samaras said on Sunday, cited by Reuters. "We promised to avert the country's exit from the euro and this is what we are doing. We have given absolute priority to this because if we do not achieve this everything else will be meaningless" Samaras added. As Richard Lee, FXstreet contributor, notes: "A dead vote on the austerity measure would place significant pressure on the single currency, as a delay of disbursement by the EU’s Troika could technically place Greece in a sovereign default. Greek benchmark 10-year bonds are reflective of the sentiment, with the yield rising a little over 40 basis point to 18.18% in the last two days."
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UPCOMING EVENTS :
2012-11-05 00:00 GMT | All. G20 Meeting
2012-11-05 09:28 GMT | United Kingdom. Markit Services PMI
2012-11-05 09:30 GMT | European Monetary Union. Sentix Investor Confidence
2012-11-05 15:30 GMT | United States ISM Non-Manufacturing PMI
FOREX NEWS :
2012-11-05 05:14 GMT | Short EUR/USD, target around 1.26 - Saxo Bank
2012-11-05 04:50 GMT | GBP/USD holding above 1.60 on low volatility
2012-11-05 03:12 GMT | EUR/AUD gaping below 1.2400
2012-11-05 01:30 GMT | USD/JPY capped below 80.50
EURUSD HIGH 1.28393 LOW 1.28159 BID 1.28305 ASK 1.28310 CHANGE -0.06% TIME 08:46:31
OUTLOOK SUMMARY : Down
TREND CONDITION : Down trend
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium
MARKET ANALYSIS - Intraday Analysis
Long direction: Market formed fresh low today and currently deviates from its initial downtrend formation. Next resistance level ahead is seen at 1.2844 (R1), break here is required to enable next target at 1.2868 (R2) and any further rise would then be limited to 1.2892 (R3). Short direction: Market sentiment is negative on EURUSD as of Friday sharp fall. If EURUSD gains momentum today and overcome our next support level at 1.2814 (S1), we suggest next targets at 1.2791 (S2) and 1.2767 (S3).
Resistance Levels: 1.2844, 1.2868, 1.2892
Support Levels: 1.2814, 1.2791, 1.2767
GBPUSD HIGH 1.60358 LOW 1.60085 BID 1.60288 ASK 1.60296 CHANGE 0.04% TIME 08:46:32
OUTLOOK SUMMARY : Down
TREND CONDITION : Down trend
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Medium
Long direction: If we take a look on the hourly chart we can see that medium-term bias is clearly negative however today instrument intend to provide retracement formation. Break above the next resistance level at 1.6039 (R1) would suggest next targets at 1.6054 (R2) and 1.6070 (R3) in potential. Short direction: Fresh low, formed on Friday is our key point for today. Next support level lie at 1.6007 (S1), below here opens the road towards to next targets at 1.5993 (S2) and 1.5978 (S3).
Resistance Levels: 1.6039, 1.6054, 1.6070
Support Levels: 1.6007, 1.5993, 1.5978
USDJPY HIGH 80.562 LOW 80.337 BID 80.353 ASK 80.357 CHANGE -0.15% TIME 08:46:33
OUTLOOK SUMMARY : Down
TREND CONDITION : Downward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : Low
Long direction: Technically, medium term tendency on USDJPY is positive and current pull back might be considered as a correction. If USDJPY gains momentum and rose above the resistance at 80.47 (R1) we expect next targets at 80.55 (R2) and 80.63 (R3). Short direction: Both moving averages is acting now as dynamic resistance levels and while price is quoted below them we expect further market decline. Downside direction is limited by next support level at 80.31 (S1), price decrease below it would be targeting next supports at 80.24 (S2) and 80.15 (S3).
Resistance Levels: 80.47, 80.55, 80.63
Support Levels: 80.31, 80.24, 80.15
Source: FX Central Clearing Ltd, (http://www.fxcc.com)