The Japanese yen outperformed after equities priced in the possibility that this weekend’s proposed European bailout package may not be enough to fix the problem, but only stop the bleeding temporarily. U.S. stocks rallied through the U.S. trading session because of reports that the U.K. Conservative and Liberal parties agreed to form a united government with a new prime minister. The pound sterling was the day’s big winner. The U.K. currency had been sold off because of concerns the political bickering may drag on. Of course, the euro was the big loser over concerns that countries, such as Portugal and Spain, may not be able to pass tough austerity measures that will reduce budget deficits and the demand for additional funding from other central banks. Lower commodity prices weighed on the aussie and kiwi but the strong U.S. dollar buoyed the Canadian dollar against its commodity-related counterparts.

Analysts Prediction, Euro/Gold

Europe Situation in “Depth”

More updates to come. Next I’ll be posting snap-shots of Indices, commodities, and Futures index concerning “Significant support/resistance levels” and ”Correlations” to currency pairs. Take care all and happy hunting.

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