By: Bastian Rubben
Many analysts and experts estimated at the beginning of the week that US indices have started the aggressive correction that everyone was waiting for. I warned here that the general trend in Wall Street was strong bullish and it cannot vanish just like that unless something unusual happens in the geo-political field. Since nothing extraordinary happened, the buyers took advantage of the declines from Tuesday in order to push more money into the stock markets. Clearly, the shares cannot continue rising forever but it looks like they have more reserves for an additional bullish session. On the other hand, a break-down of yesterday's low will increase the probability that the indices are about to make a stronger correction.
The rising in Wall Street yesterday helped the Euro rise against the USD after the sharp declines two days ago. The investors will be looking for the ECB press conference 45 minutes after the official bank rate is published and if they encouraged by the ECB president, the currency might rise upwards to 1.325. Otherwise, the EUR might fall under 1.30.
The interest rate in Britain is published today as well and will probably influence the Pound's trend during the day. Since both currencies, GBP & EUR are moving in similar trends versus the USD, the pair EUR/GBP is stamping, but if the EUR gets stronger, it might try to break-through 0.84.
