Euro May Be Poised for `Explosive Breakout,' Citigroup Says

Discussion in 'Forex' started by ASusilovic, Jul 2, 2008.

  1. The euro may be nearing an ``explosive breakout,'' reaching record levels against the U.S. dollar, according to a Citigroup Global Markets Inc. research note.

    The trading pattern, including a so-called double-bottom that tested lows, resembles the one before Feb. 26 that preceded the surge to $1.6019 per euro, analysts Tom Fitpatrick in New York and Shyam Devani in London wrote in the note today.

    `` We cannot help but feel that things might be about to get very bad again,'' the analysts said, referring to the possible combination of falling bond yields and rising oil prices.

    The exchange rate may approach $1.69 per euro by September if previous patterns are duplicated, the report said.

    The dollar fell to a two-month low, trading at $1.5864 at 12:35 p.m. in New York, down 0.5 percent from $1.5793 yesterday. It earlier touched $1.5887, the weakest since April 24. The dollar reached an all-time low of $1.6019 per euro on April 22.

    Crude oil rose 1.2 percent to 142.67 per barrel in trading on the New York Mercantile Exchange today. It reached a record $143.67 per barrel on June 30.

    Two previous breakouts, from August to November and February to April, were accompanied by financial market upheaval and interest-rate spreads favoring Europe, where benchmark lending rates exceed those in the U.S.

    Opppsss...I got a strange "FEELING", too...feelings ! HA, ha, ha...:D :) :p
  2. Yes indeed....that shows the george "W" bush euro breakout pattern. He is doing everything he can to help smash the buck and help prop the euro for his global entity buddies world assets grab. :eek: :D
  3. don't forget the more obvious conspiracy theory in which bush has invaded iraq to purposely jack up oil prices for his texan accomplices.
  4. He was also the 2nd gunman on the grassy knoll.
  5. So that's it! "W" was the "Badge Man"!