Chinook's EUR/USD (E/$)Mumblings

Discussion in 'Forex' started by chinook, Aug 16, 2004.

  1. Well, this thing crept up before the US open on Thursday open and went before the US open lat night.
     
    #1001     Oct 4, 2004
  2. Yes, disappointing that they managed to cut it down to under 1.23 as well. I was inclined to believe 1.2355 would hold also.

    Well, anyway - I feel comfortable buying some small dips for small targets. My ISP has been quite unstable over the weekend and this morning. A few seconds after I entered a trade around the 1.2270-area I lost my connection. Luckily I already had a target set for the 1.2280-area, and was quite strongly convinced that we would at least bounce back up there because of the running stops that seemed to meet support around the 70-area.

    Now, for the day as a whole I don't know; it seems most of the move has been done while US markets were closed, as you pointed out. So any very big moves is not something I would be looking for during the US session. Some tighter range-trading is more of a possibility - also because I think we will pop through the 1.2280-level quite a few times.

    Maybe I should be satisfied with +22 ticks/pips on 2 trades after all the problems my ISP has; when it rains in Brazil the world stops - although it's just a quick shower - not pouring down or anything. Weak infrastructure hanging from posts in the street and not weather-resistant (and more costly) buried cables is the norm here.

    Seeing as the EuroFX now trades under 1.2260 it might be just as well to count one's blessings. :D

    We're back in the old rut again now if there isn't some great news ahead. I guess all of this comes as a prelude to the infamous NFP on friday - it's expected to the best in 3 months. We will see. At least all categories of traders can feel the frustration of the range-mentality on their shoulders. At least the 1.2235-area should be a final supportive level for today, so no worries there.

    The good thing is that we probably have a bigger range towards friday, but possibly a flatter thursday ? Just guessing anyway, I'll stick to scalping now as trying to catch the very big fish is also a lot of guesswork right now.
     
    #1002     Oct 4, 2004
  3. Deutsche Banks's Euro sentiment survey today:

    Sentiment Survey of European Importers and Exporters

    The euro’s latest rejection from the mid-$1.24s has
    drawn a collective sigh of “I knew it”’ from market
    participants. The sideways range of the last few
    months appears unbreakable. At least the belief that it
    will be maintained is so strong that the behaviour of
    medium-term traders is sustaining it – a sort of selffulfilling
    prophecy. This week’s survey reveals that this
    group sold euros on balance over the course of the
    last five sessions. They may even have been the
    principal sellers near last week’s peak. As a result,
    our Bull/Bear-Index® has slipped fractionally below the
    level that prevailed a fortnight ago.

    The abrupt revision of medium-term opinion is
    noteworthy. Just last week this group expressed rising
    optimism on prices near $1.2250. In the meantime
    there have been no discernible changes in the
    fundamentals: the economic data was mixed; the G7
    meeting was expected to be (and was) essentially
    neutral for exchange rates; and the modestly rising oil
    price is widely considered to be dollar-negative. The
    only thing that did change over the course of the
    week was the euro’s spot price. And this
    information alone was sufficient to justify mediumterm
    sales.

    Long liquidation by medium-term players means
    that this group is in a position to rebuy on dips. Of
    course, there is no doubt that some demand will
    emerge at the lower border of the range, i.e. near
    $1.20. But given the narrow range from which
    medium-term traders are currently trying to extract
    value, one should not be surprised to see their bids
    appearing in the middle of the range. As for the
    upside, a return to the upper border will attract more
    selling interest than ever unless it happens so
    quickly that nobody has the chance to react. Panic
    moves are therefore subject to very strict preconditions.

    <pre>
    EUR USD: 1.2360 (+0.8%)
    Survey responses: 167

    Bullish Bearish Unchanged Total
    Exporters 35% 39% 26% 51%
    Importers 57% 11% 32% 49%

    Total 46% 25% 29% 100%
    Variation -4% +2% +2%
    </pre>
     
    #1003     Oct 4, 2004
  4. I'm sorry to hear about your ISP. What's the speed of your Internet connection?

    I'll be surprised if there is any major buying today. Not many buyers for the dips so far.
     
    #1004     Oct 4, 2004
  5. I have a 1Mbps line.
    Yes, there is very little activity; no signs of moves to act on either, glad I did other stuff the last few hours.

    edit: when adjusting the charts it looked better, though - but haven't missed out on a lot it seems.
     
    #1005     Oct 4, 2004
  6. 1MBs is not bad at all. I think that should be more than enough for following FX plus a few other markets.

    By the way, is your main data feed IB?
     
    #1006     Oct 4, 2004
  7. Yes, although I'm not very thrilled about how they deliver quotes (sometimes splitting trades, and many times delivering quotes in non-chronological order - i.e changes in bid/ask before the engulfing trade is posted). I understand why, though - updating information you need to trade is first and foremost - but it still could be delivered optimized though ... X-Trader via velocity does so e.g.

    Otherwise I like the very good performance on numbers-release etc.

    I also use quote.com and others for backfill and historical data - even for EuroFX.

    Still having the fastest quotes out there gives a little edge I think - although I'm a long way from their servers and get bad ping times.
     
    #1007     Oct 4, 2004
  8. If you have volume sensitive decisions, then IB data might not be optimal but if you're backfilling almost in real-time that should be OK too.

    I used to have problems with TS lagging IB but they seemed to
    have corrected the problems.
     
    #1008     Oct 4, 2004
  9. Truly a yawning US session for the EuroFX today. I might say the same about the asian sessions lately - although last night was a fair amount of slide. European sessions look a little more spicy .. but ... getting up freakin' early is not my definition of 'fun' anymore (I used to trade european equities first when living in Brazil).

    Well, friday's NFP will at least get some voltage going in those junked up veins of traders. :D
     
    #1009     Oct 4, 2004
  10. Electronic EURUSD futures won't be affected but volatility might be low since US banks will be closed.
     
    #1010     Oct 5, 2004