Euro bashing rests for porfit taking
Today's Financial Times suggests that £7 billion of short trades are weighing against the eurozone's immediate currency prospects.
We did see both Euro and Sterling hit 8 month lows overnight as the Asian markets rushed to buy the perceived safe haven US Dollar but once again, proximity to support levels was enough to bounce both rates as Europe entered the fray.
The concern for Euro bulls is that recovery attempts seem very limited in scope and small in magnitude.
The rally for the single currency in the US last night was snuffed out by the combination of a late sell off in equities and an expectation that Bernanke’s testimony this evening could very well signal a more hawkish Federal Reserve outlook, with speculation that he might lay groundwork for a tightening of monetary policy.
Yesterday’s markets, outside the late US fluctuations, were largely extremely boring with traders waiting for developments (either good or bad) on the Eurozone Sovereign issue.
Labels: currencies, currency converter, euros, eurozone, global recession, Greece, Sterling, US Dollar, wise money




