"Juncker said the euro's strength is a "problem that worries us", while Trichet said that excess volatility in the foreign exchange markets hurts the economy. The euro has already climbed over 20% against the dollar since March this year." DJ newswires
So - this is kind of what you'd expect when you get to big figure like EURUSD 1.5000 - well at least we're extremely close. Verbal intervention. But it's been with ZERO effect.
With this in mind I don't really want to be short EURUSD. Except from a scalper standpoint. There only 10 minutes or 1 minute counts. But talking days here I feel the rhetoric could get stronger.
What I have little faith in: That Fed helps to cool strength of USD. And without them, how can the market really believe the turning point has come? Hm.... Maybe if the Fed were to aggressively pull back liquidity. Not very likely right?
I also saw my old friend EURCHF is getting close to the last SNB intervention levels. 1.5020 had been intervention. Now we're around 1.5120.
So will we have some news that pushes us though EURUSD 1.5000 and gets people talking - that in turn leads to intervention and cooling off to 1.4500. That's my bet at the moment. So sidelined :D
No comments:
Post a Comment