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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
Its not clear if they are hedging or merely returning to European markets abandoned last spring at the worst of the sovereign debt crisis. Either way, they have been a steady presence that has helped keep EUR/USD underpinned.
EUR/USD trades at 1.2680 with some profit-taking seen as short-term accounts book profits as US equities lose steam. The S&P is nearly 9 points below earlier highs and are now up less than 2 points
Central Bank Bid Crops Up On Dip
Traders report an Asian central bank bought EUR/USD as it dipped into the high-1.2650s.
Prices have stabilized and we now trade in the 1.26565 area
IMF: Downside Risks To US Have Increasedhttp://www.imf.org/external/np/ms/2010/070810.htm
If data remains weak in coming months, would have to consider revising forecast (really? ya dont say) Fed could change language to indicate rates to stay low for longer if outlook worsens.
Calls for eliminating mortgage interest deduction in US (THAT will help the housing marketNot!
UKs NIESR: Q2 GDP 0.7%
NIESR says the UK economy grew 0.7% in the June quarter but slowed from a 0.9% pace in the three-months end in May. Headwinds ahead for the UK economy include budget consolidation in the UK and euro zone, the think-tank says.
Cable has been a major laggard today after a sharp drop in UK house prices was released overnight. 1.5080 is important support on weakness. Stops are perched below
Baltic Dry Drops Another 4%, Below 2000, Longest Decline On Record Enters 31st Day
The Baltic Dry, which contrary to what some may claim, actually is one of the best leading indicators on global trade and thus the health of the economy, continues to plunge, and is now below 2000, hitting fresh 14 month lows, at 1940. It is now at the levels last seen during the March 2009 "generational" low, and just after the Lehman bankruptcy. Yet futures are up as initial claims beat expectations by 6,000 very statistically relevant people.
There's where my SL is. If it should break 1.2730 then I'm out! Small lost. GL!
I'm waiting for 2740 with SL 1.3000
Eurusd should test 1.2720 but may not break that level today. Rising wedge 4 hr chart. Any comments?
So nothing to do until then IMO. Expect also the market to resume its downtrend by then.
Jamshed what you need to realise is politicians make statements all along who even knows if Obama will be there after 5 years. Probably by the time he leaves US maybe in far worse shape than it ever was.
The only way to control the dollar, is either to improve the bond market and reduce its align threats to them bond or to hold and another global reserve currency.