Intraday Market Thoughts

Implications of Playing the Range

by Ashraf Laidi
Apr 19, 2012 18:36

FX algos and mean-reversion traders see no economic value in breaking EURUSD out of its 2-week long consolidation range of $1.30-1.32 before next Wednesdays key FOMC decision, which could well deliver market-destabilizing outcome of one-more hawkish member in addition to Mr. Lacker. Looking at the frequency of Eurozone rescue packages and ECB operations, note that the first three bailouts were given at 7-month intervals (see chart), followed by the first LTRO (December 2011), which was deployed 8 months after Portugals bail out. For the trading implications of these ideas, see our latest Premium Intermarket Insights here: Non Subscribers, can click here to join:


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