Spain Seels Bonds Over EUR 3 Million; Interest Rates Increase Again

On Thursday Spain sold bonds worth more than 3 billion euros for higher interest rates than those asked in return for the last month due to lower demand. Spain highlights the marketing of bonds, short-term interest rates and medium- after long-term debt increased by 7%. The economist says: "Interest rates on long-term debt are very high and are the main cause of suffering in Spain. There is significant uncertainty regarding the capacity to consent on the circumstances of the rescue plan, we are looking forward principles to be signed in the program." A discussion on the final terms of the bailout amongst finance ministers in the European union will take place on Friday, but the European Commission has approved financial assistance should be used only re-privatization of the banks not to buy government bonds.

The German parliament on Thursday (July 19, 2012) by an overwhelming majority approved to grant loans worth billions of euros for a number of Spanish banks, which suffer from a severe economic crisis. The decision was confirmed by a majority ( 473 out of 583 members). The German aid package will provide about 100 billion euros from the umbrella of European extraction (FSF) for Spanish banks faltering.

U.S. data showed an increase in applications for unemployment benefits. Atlantic factory activity in the Central States, which reinforced expectations to stimulate new economic order of the Federal Reserve and to support the investment appeal of the precious metal.

In commodity markets, gold rose yesterday by 1% after two days of losses and received the support of the dollar. The fall of the crude oil causes rising of the political tensions in the Middle East. The U.S. crude oil closed the trading session with an increase of 3.1%.

European stocks closed at their highest level in four months on Thursday which is a way to record their seven-week gains, as strong results boosted the profits of companies like Electrolux investors on assets including greater risks. On wall Street U.S. stocks closed with an increase for the third consecutive day with an increase:

NSDQ 0.79% ↑ S & P 0.27% ↑ Dow 0.27% ↑

EUR/USD
The euro is currently on its lowest level in two years against the dollar caused by a rise of the dollar for 2% against most of the currencies since the beginning of this month.

In yesterdays trading the pair reached the highest levels at 1.2322 and the lowest at 1.2228. EUR/USD is currently trading at 1.2260. If the pair breaks through the resistance level of 1.2300, it is expected to achieve the next level of 1.2325., while braking the level of 1.2230 may dismiss postpone these expectations.

Today's trading range:

Resistance: 1.2300, 1.2325, 1.2345

Support: 1.2175, 1.2210, 1.2230
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GBP/USD
Sterling rose against the dollar yesterday, more than 70 points, and achieved the highest level at1.5735 , while the lowest at 1.5635. Most likely GBP/USD will try to test the resistance level at 1.5755, while breaking the level of 1.5660 would delay the achievement of these expectations.

Today's trading range:

Resistance: 1.5755, 1.5800, 1.5850

Support: 1.5575, 1.5620, 1.5660
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Gold
Gold rose yesterday by 1% after two days of losses and received the support of the decrease of the crude oil. In yesterday’s trading session the precious metal reached its highest level at 1591.40, while the lowest at 1572.35.

Most likely the gold will try to test the resistance level in 1594 while braking the level of 1577 may delay the achievement of the expectations.

Today's trading range:

Resistance: 1594, 1600, 1615

Support: 1565, 1571, 1577

WTI Oil - Crude Oil
The crude oil in the US with an increase of 3.1% compared with the seventh consecutive session and reached the highest level in eight weeks after tensions in the Middle East increased fears of possible supply interruptions. In yesterday's trading the prices of WTI ranged between 93.22 and 90.14 dollars per barrel. Crude oil probably will try to test the resistance level at 94.30 while with a penetration in the level of 90.70 could delay the achievement of the expectations.

Today's trading range:

Resistance: 93.40, 94.30, 95.95

Support: 88.05, 89.30, 90.70