Sunday Weekly EDGE 6-17-2012

First and foremost, Happy Father’s Day to all the Dad’s out there. Keep up the great job being a positive role model for all the younger folks out there.

Today we are awaiting the results to the Greek elections. As of right now, exit polls are indicating a possible majority of the New Democracy (ND) and a win would quite possibly gap the market higher this evening. Traders on my stream are saying that pre market indications are showing the EUR/USD trading in proximity of the 1.2700 level. Here is an update from Bloomberg.

(Update: Looks like the ND will win, so seeing if they can form a grand coalition)

In other election news, French Socialists win absolute majority in parliament.

AEP say that is really doesn’t matter what party wins, Greece is out of here…

Here is an interesting article that got some attention on Friday of last week. However, if you have not heard about the “not so secret” EU summit document circling around about a banking union, here is it.

Don’t forget that this week the FOMC meets and there is speculation that the Fed will do “something” with operation twist with the recent slide in economic data. Considering the USD is already on its back foot with last weeks sell off, extending operation twist could further pressure the buck. Inaction of the Fed would catch the market off guard (in my opinion) since it is widely believed they will act this week.

Economic data that may have a high impact to the market this week will be pretty light but the data coming out is pretty heavy. Aside from the G20 meeting the beginning of the week, we have German ZEW on Tuesday,  FOMC on Wednesday with NZD GDP later in the day followed by China Manufacturing PMI later that evening. Thursday retail sales from GBP and CAD followed by existing home sales and Philly Fed from US. German IFO and CAD CPI round out the week on Friday.

Company earning as fairly light this week, but a few that caught my eye were FDX, DFS, ADBE and JBL on Tuesday. BBBY and RHT on Wednesday. KMX and ORCL on Thursday. DRI and CCL to finish up the week on Friday.

Lastly, most of you know that my team and I broadcast daily from 6AM ET through the NY stock market close. To access our live webinars daily (which are free, and our live in the market analysis has been for nearly 9 years now) just click on this link. Make sure you follow me on Twitter or Stocktwits @pipczar for my thoughts as the FX market opens this evening.

Here are some charts which I think will matter for the markets this evening and this week:

I know I’m not the only trader looking at this ES daily chart.

I am assuming both trend lines in the EUR/USD and AUD/USD get hit. “How” the market reacts to them will determine my action this week.

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About Blake Morrow

Blake Morrow is the Chief Currency Strategist for Wizetrade. Blake has over 15 years of trading experience and has been a co- owner of a Dallas based brokerage firm and LiquidTrader Technologies. Currently, Blake does analysis daily for thousands on individual traders, also has appeared as a regular analyst on WizetradeTV, Traders Television and MBT Vision. Blake has also managed 6 figure trading accounts and is a seasoned individual investor in equities and FOREX.