UFXMarkets *Daily Forex Currency Trading News* 23-May-2012


Stocks finished mostly flat as renewed talks
call for a Greek Euro exit and Existing Home Sales came out strong with 4.62M. S&P 500
finished with 0.05% change, NASDAQ declined by -0.29% and Dow Jones by -0.01%. The US Dollar gained versus the majors as
the risks of a Greek exit from the Euro weigh on risk appetite. Greek former Prime Minister
said the risk of Greece exiting from the Euro region is real sent stocks lower. Today, New
Home Sales are expected with 335K versus 328K prior. Gold declined by -0.80% to $1567 an ounce
as the metal’s trend remains bearish and the $1584 support level was broken. Crude
dropped by 0.94% closing at $91.70. The Euro fell versus the majors after former
Greek PM said that Greece is likely to exit from the Euro region, sending futures and
currencies downwards. EUR/USD is currently near the daily bottom level at 1.2640 which
if breached could send the pair rallying downwards towards its lowest level since 2010. The Pound weakened versus the Dollar as uncertainty
regarding the future of the European Union. The major trend of the pair is bearish and
unless the 1.5850 level is breached short positions are still preferred. Today, Retail
Sales are expected with -0.80% versus 1.80% prior. The Yen fell versus most majors after Fitch
Ratings cut Japan’s sovereign-rating as the nation’s debt continues rising. Fitch
downgraded the rating by one notch to A+, the fifth highest level.
Traders are expecting the Japanese government to take more stimulus measures, thus weakening
the Yen. USD/JPY main trend is bearish but a cross above 80.55 could reverse the trend
and send the pair towards 81.80.

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