FX.co ★ Fundamental Analysis, June 28, 2011

The markets are under severe pressure from three fronts, having been significantly complicated. The first one: (1) hypothetical situation in Greece and contagion to other states, already assisted (Ireland, Portugal) or not (Spain, Italy ...) (2) The need for an agreement to raise the debt ceiling in the U.S. before August, (3) Governance of the states, because the social response might prevent steps to redress the economy.

We could summarize by saying that since last Monday the first key factor has worsened, there has been no news of the second (and in this case no news should be interpreted as bad news) and only the third appears to have stabilized but not improved. Additionally facing a slowdown in global economic recovery, more tangible macro indicators, and inflationary pressures, increasingly more concerned and will probably not be neutralized or climbing types (as it has its origin in the higher commodity premiums for the emerging demand), market or putting into strategic oil reserves (such as the AIE decided to do last week). It may seem overly pessimistic approach, but almost as disturbing as this kind of cocktail of obstacles is the failure to identify a positive factor of some importance, if only hypothetically deliverables, which counteracts the above. In such a context, the hope that "the situation will be renewed" is as certain as largoplacista, while prices are or are not "attractive" depending on the violence of the outcomes of the issues now open.