commentary

S&P put Germany, France and 13 other Euro-area nations on review for a downgrade. This news caused the Euro to dip and the USD to rally, gold already having trouble breaking above $ 1750.00 yesterday, took a hit as longs liquidated. After testing the resistance at $ 1750 in the last couple of days, it seem we might have a look at the support at $ 1700 now. The focus will be on the ECB meeting on Thursday and EU summit on friday, markets will await if any solution to the crises can be found. Until then news driven markets will not be easy to trade.