Euro Exchange Rate Technical Analysis
The euro may be gaining a bit this morning, but on our charts (that show only one price taken at 5-6 am ET), the US dollar exchange rate corrective move up has resumed. Evidently the perception that the US dollar should be punished because the US started this mess is not the main sentiment. Foreign Exchange Traders are not concerned (so far) about a giant increase in the budget deficit, either, or that the US is headed into a Great Depression. Instead, the perception is back that it will be worse elsewhere, specifically Europe.
This is a version of the FIFO argument.
UBS, for one, recommends the following foreign exchange trade; Sell Euros Buy US dollars, according to Bloomberg, because recession is about to hit Europe and will be long-lasting.
The sell point is 1.4655 with a stop at 1.4890 and a target of $1.4250.
Buy for Now
Barbara Rockefeller - Forex Trading Report
Pounds to Euros at best exchange rates visit http://www.imsfx.co.uk/
Showing posts with label best euor exchange rates. Show all posts
Showing posts with label best euor exchange rates. Show all posts
Friday, September 26, 2008
Thursday, September 25, 2008
Technical Analysis - US Treasury Secretary demanding a blank check for $700 billion
Euro Exchange Rate Technical Analysis
The euro exchange rate is resuming the upmove after only a two-day dip. Normally we expect three days (or more) and indicators were supporting the idea of a bigger dip-but fundamentals trumped the chart. In this instance, the market was expecting Congress to fold faster and not put up such a fuss over a little thing like the US Treasury Secretary demanding a blank check for $700 billion with no oversight and no legal recourse. Congress balked and became the “fundamental." The sentiment persists, however, that once the deal gets done, we should get a relief rally in the equity markets and in the US dollar.
We have seldom seen sentiment in such a delicate state and so sensitive to political nuance.
It’s not going too far to say that the Bush speech, and Bush inviting the presidential candidates to a summit meeting today, was an injection of politics that the market didn’t like. We can’t recall an occasion in the past when something this tangential had such a decisive effect.
Buy for Now
Barbara Rockefeller - Forex Trading Report
Pounds to Euros at best exchange rates visit http://www.imsfx.co.uk/
The euro exchange rate is resuming the upmove after only a two-day dip. Normally we expect three days (or more) and indicators were supporting the idea of a bigger dip-but fundamentals trumped the chart. In this instance, the market was expecting Congress to fold faster and not put up such a fuss over a little thing like the US Treasury Secretary demanding a blank check for $700 billion with no oversight and no legal recourse. Congress balked and became the “fundamental." The sentiment persists, however, that once the deal gets done, we should get a relief rally in the equity markets and in the US dollar.
We have seldom seen sentiment in such a delicate state and so sensitive to political nuance.
It’s not going too far to say that the Bush speech, and Bush inviting the presidential candidates to a summit meeting today, was an injection of politics that the market didn’t like. We can’t recall an occasion in the past when something this tangential had such a decisive effect.
Buy for Now
Barbara Rockefeller - Forex Trading Report
Pounds to Euros at best exchange rates visit http://www.imsfx.co.uk/
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