Royalmaxbrokers: And From Now on We'll Go In One Sled

According to RoyalMaxBrokers , Thursday's session presented a gift to speculators focused on short-term trading, as it turned out to be extremely volatile. It is understandable: when monetary authorities take action, the market sentiment is extremely sensitive and the states of euphoria and fear can quickly change each other.

According to RoyalMaxBrokers , at about 3 pm (Moscow time), the People's Bank of China unexpectedly decided to lower the key interest rate by 0.25% - for the first time since the height of the global financial crisis in 2008. The declining economic growth rates, negative indicators of the leading indicators and the growth of the debt crisis in Europe simply left the Chinese with no other choice. Obviously, market participants took this news very positively, and quotes of most risk assets were sharply raised. Particularly strong impetus was given to commodity assets, as China is one of the largest consumers of raw materials in the world. Within a few hours, quotes of oil added almost 2%, copper - 2.3%, silver also accelerated its growth, which since Tuesday exceeded 5%.

At 18:00 Moscow time came the turn of the head, perhaps the most influential financial institution in the world of the US Federal Reserve. After frankly soft comments by the heads of the Federal Reserve Bank of Atlanta Lockheart and Deputy Chairman of the Federal Reserve Yellen, who talked about the advisability of building up incentives to support economic growth, market participants hoped to hear confirmation of these intentions from Ben Bernanke. However, this time they were bitterly disappointed - in his speech before Congress, Bernanke never gave a clear signal that the central bank was ready to take new stimulus measures, limiting itself to the promise of "acting, if necessary." Moreover, this time the chairman emphasized the need for action on the part of the government, which controls the fiscal and taxation sphere. According to RoyalMaxBrokers , the two largest Central Banks of the planet - the Fed and the ECB - after three years of monetary stimulus recognize the limitations of their capabilities and urge politicians to make their decisive contribution to saving the economies from the crisis.

Obviously, investors were skeptical of this message and began to sell risky assets and, of course, to buy US bonds - the yields of 30-year bonds again updated historical lows. An additional negative was added by the report of the rating agency Fitch, which again lowered the sovereign rating of Spain - this time to the level of "BBB", giving it a negative outlook. In a report dated June 06, the analytical department of RoyalMaxBrokers wrote: "The EUR / USD pair is trying to gain a foothold above the upper limit of the descending channel and overcome the psychological mark of 1.25. In case of successful bidding, the next strong resistance will be a horizontal level of 1.2620. " It was at this level (the day's high at 1.2625) that the sales of the European currency began yesterday, as a result of which the pair again returned to 1.2500. Apparently, our vision, based mainly on technical analysis, was again justified.