{"id":37472,"date":"2012-11-13T19:22:00","date_gmt":"2012-11-13T19:22:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/the-fiscal-cliff-weighs-on-eu-crisis\/37424\/"},"modified":"2012-11-13T19:22:00","modified_gmt":"2012-11-13T19:22:00","slug":"the-fiscal-cliff-weighs-on-eu-crisis","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/the-fiscal-cliff-weighs-on-eu-crisis\/37472\/","title":{"rendered":"The Fiscal Cliff weighs on EU Crisis"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<h2>The Fiscal Cliff weighs on EU Crisis<\/h2>\n<p>With the EU searching for any foothold, the U.S. looks poised to follow the Europeans into the fiscal abyss. The U.S. election season is over and the markets have refocused their attention to the looming \u201cfiscal cliff\u201d. Essentially the Bush tax cuts are set to expire along with sequestration cuts coming online. Both at the same time are almost certainly going to toss the U.S. back into recession.<\/p>\n<p>Europe\u2019s continual game of \u2018we have to pay for this?\u2019 is also rattling the markets. Greece\u2019s ongoing saga of the 120% debt target has been delayed to 2022. Juncker may not think it is a joke, but the market certainly does.<\/p>\n<p>The scenarios for the fiscal cliff are not promising. Undoubtedly a deal will get done, but the shape of it remains to be decided. The brinkmanship over the debt ceiling fight is sure to make a return as parties jostle for position. Beltway wisdom has the Democrats in a better position to get revenue increases, the new buzzword for tax increases. The GOP pundits have already signaled they are willing to give on the wealthy tax increases in return for broader tax and entitlement reform.<\/p>\n<p>What is almost a certainty is that the can will be kicked in the lame duck session. Small extensions of the status quo are the likely outcome before Christmas. Once the new Congress is seated the real fight will begin. Republicans still reeling from their losses last week will use their control over the House to try and force some sort of a grand bargain.<\/p>\n<p>Meanwhile in Europe, one has to wonder how many cliffs they can fall off of until they cease to exist. Just when you haven\u2019t heard anything on Greece in a few weeks they pop up and yep, they want money. They are like that delinquent family member that always asks to borrow cash.<\/p>\n<p>Toss in Spain\u2019s fiscal woes, Italy\u2019s struggling economy and you have all the trappings of a continual bailout. When they used to talk of a moral hazard in 2008, you have to wonder if they ever envisioned this?<\/p>\n<p><strong>High Impact Indicators on Watch<\/strong><\/p>\n<ul>\n<li>USD Advance Retail Sales (Wednesday)<\/li>\n<li>USD Producer Price Index (Wednesday)<\/li>\n<li>USD Fed Releases Minutes from Oct 23-24 FOMC Meeting (Wednesday)<\/li>\n<li>EUR German Gross Domestic Product (Thursday)<\/li>\n<li>EUR Euro-Zone Consumer Price Index (Thursday)<\/li>\n<li>USD Consumer Price Index (Thursday)<\/li>\n<\/ul>\n<p><strong>FOREX Insights<\/strong><\/p>\n<p>The EUR.USD has been a bearish play for day traders over the last few weeks as the market is coming off of the \u201chopium\u201d high injected by Draghi back in the early part of August. Will this trend continue? The underlying question for traders right now is which side of the fence to be on when this thing comes down. Two failing economies makes a long term EUR.USD play difficult to decipher.<\/p>\n<p>On the daily chart the technical story looks intriguing at best. The Relatives Strength Index (RSI) is oversold, the trend has been riding the bottom Bollinger band for just over a week and we are seeing a possible \u201cdeath cross\u201d in the moving averages.\u00a0We will likely see a continued decline in the EUR.USD, but caution is key as we approach the 50% retracement level.<\/p>\n<p><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/plugins\/RSSPoster_PRO\/cache\/5a320_FXFocusChart.gif\" alt=\"FXFocusChart\" align=\"none\" border=\"0\" hspace=\"0\" vspace=\"0\"><\/a><\/p>\n<p>Your <a href=\"http:\/\/www.knowfinance.com\/currency\/\" target=\"_blank\" rel=\"noopener\">currency<\/a> analyst,<\/p>\n<p>Justin Burkhardt<\/p>\n<p><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/plugins\/RSSPoster_PRO\/cache\/967a3_Screen%2520Shot%25202012-08-17%2520at%25201.25.23%2520PM.gif\" alt=\"Screen Shot 2012-08-17 at 1.25.23 PM\" align=\"none\" border=\"0\" hspace=\"0\" vspace=\"0\"><\/a><\/p>\n<p>Disclaimer: I have no positions in any of assets mentioned, but may initiate a (long or short) position in the EURUSD over the next 72 hours<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20121119030654\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fthe-fiscal-cliff-weighs-on-eu-crisis%2F37472&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/the-fiscal-cliff-weighs-on-eu-crisis\/37472\">\nThe Fiscal Cliff weighs on EU Crisis<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/aud-usd-a-rally-from-down-under\/37095\">\nAUD.USD: A Rally From Down Under<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/forex-and-economic-indicators-4\/36838\">\nFOREX and Economic Indicators<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/could-the-u-s-election-release-the-bulls\/36566\">\nCould the U.S. Election Release the Bulls?<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/could-the-u-s-election-release-the-bulls\/36565\">\nCould the U.S. Election Release the Bulls?<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/spain-inflated-optimism\/36128\">\nSpain: Inflated Optimism?<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/casino-royale-gambling-or-trading\/35824\">\nCasino Royale: Gambling or Trading?<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20121119030654im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/31.png\" alt=\"Justin Burkhardt (FXFocus.com)\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Justin Burkhardt <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nAs an active currency trader, my goal is to educate new and experienced traders alike to take advantage of the inherent volatility that exists in the Forex market.\n\nMy Objective? Winning trades. I implement strategies and tactics that help me to identify high probability trade set-ups.  Approaching each trade with insight into the driving forces behind the market, I keep profit targets conservative. Long-term viability and volatility do not go hand-in-hand in this market. I strive to maximize reward while minimizing loss.\n\nhttp:\/\/www.fxfocus.com\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n<script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script>\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fiscal Cliff weighs on EU Crisis With the EU searching for any foothold, the U.S. looks poised to follow [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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