By: Bastian Rubben
The US stock market continued rising last week on the background of improving GDP & continuing claims data. NASDAQ reached the level of 2650 points and the S&P 500 broke through the strong resistance at 1370 points but was not able to close above it. The investors will wait for the flow of important data that will come on the second half of the week, mainly on Friday with the US employment data. Before that, focus will be on the ECB press conference on Thursday, in which the Central bank will keep the interest rate on the current level.
The Euro got support from some of the ECB actions during the recent weeks in which the central bank gave about 500 billion dollars to the banks among the continent in order to assist them in their credit problem. However, these encouraging events did not help the EUR and eventually it shed points against the USD last week. From the technical aspect, this correction was expected after the strong rally from the beginning of the Year. The EUR is around the levels in which a bullish reversal might occur and if it does, the pair might jump to 1.35 again, but if the US stock markets start a bearish momentum, we will probably see a continuation of the strengthening of the USD.
