what's up with the euro?

Discussion in 'Forex' started by asd123, Jul 1, 2010.

  1. asd123

    asd123

    200 pips from 1145pm, was there any news other than flat german data. it was already up about 150pips before us econ data. I doubt its because of the inverse HS pattern on the daily alone, but you never know. What are your thoughts?
     
  2. Banana14

    Banana14

    Retrace? Dropped like pants yesterday against the Yen.
     
  3. AUD and CAD are dropping like a stone these past days.

    The currency of choice to be in seems CHF.

    Own it.:D
     
  4. It's the result of the 6 day FTO, which together with the LTRO result from yesterday, filled people with optimism about the EUR banking system...
     
  5. Isn't CHF in negative yield zone?

    I see lot bond auctions around the world, perhaps higher price will be easy for them to unload bonds.
     
  6. No, it ain't...
     
  7. Why isnt that renewed trust then resulting in stabilising banking stocks?
     
  8. Sorry, have to disagree. I'd never question you on fixed income, but FX is my bag.

    The EUR has been used as of late as a funding currency to buy all sorts of carry trades. The resulting rout from those carry trades is pushing folks back into the Euro as they're closed out. This, of course, hits stops along the way and acts as a short squeeze.

    It's a temporary thing. If anyone thinks the EZ is "alright" now, they're lunatics.

    Great short opportunity.
     
  9. Exactly.
     
  10. It seems that EUR carry cost is kind higher than CHF, only if JPY falls out favor.
     
    #10     Jul 1, 2010