Posts by "digi"

The upswing in euro caught many flatfooted," said David Watt, a currency strategist at RBC Capital Markets.

The sharp moves, however, highlighted the thin and choppy year-end trading conditions that are likely to persist as more and more investors close their books for the upcoming holidays.

"Many players are absent, leaving the market driven by short-term trading," said a trader at a European bank in Tokyo.

The dollar's decline also followed an abrupt drop in U.S. Treasury yields and Moody's warning that it could move a step closer to cutting the U.S. triple-A credit rating.

Improved appetite for riskier assets on growing optimism about the U.S. economy and China keeping interest rates on hold all conspired to push the greenback down more than 1 percent against a basket of major currencies. [ID:nL3E6ND0QB]

"It looks like it was more a squeeze of positioning than anything else. Particularly in the euro because we know the market is well short," a trader at a U.S. investment bank said.

ja wohl ,

the ocean called........... its runnin out of shrimp

The following statement comes on the midst of latest data coming from Commitment of Traders which measures hedge funds, large institutions, and retail traders positions. Latest COT report showed that net short positions in the Euro have doubled from the previous reading. Looking at technical levels we find that our current support of 1.3175 would be a strong level for the time being. On the upside, we find that 1.3400 would act as proficient resistance level.

gold -20