News that North Korea are threatening to enrich more uranium for use in nuclear weapons is adding to the geo-political risk aversion play. In days gone by, the USD and CHF were always the big winners when any political tensions came to the fore. If we return to those days, as the small moves this morning suggest we might, then the USD could be the big winner as it makes up a lot of ground lost recently. (Another reason to leave an offer in the AUD/USD around the big Fibo level at .8375!).
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North Korea also in the news again
June 15 2009, 1:42am | Comments »
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Real money late-day EUR/USD sellers again
Thursday afternoon dealers relayed good interest to sell EUR/USD on the rally above 1.4150. Today they say they are selling from the 1.4030s. EUR/USD has fallen back toward 1.4000 despite a continued rebound equities and a bounce back in oil prices. The S&P is down just 3 points on the day while Oil is down only 30 cents after being down more than $1.50 early this morning. Markets are thin so we would be reluctant to take much of a stand either way ahead of the weekend. 1.3935/40 and 1.3915 is support if selling snowballs.
June 12 2009, 9:26pm | Comments »
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EUR/USD stalls ahead of 1.3900 again
Twice during the US session prices have stalled ahead of the 1.3900 level. Reports have circulated that a US investment bank that was a major buyer at higher levels last week is offloading longs on strength today. They’ve also bought 1.3800, 1.3600 and 1.3400 puts, expiring tomorrow, next Tuesday and July 8, respectively. Looks like we could sit 1.3800/1.3900 for the balance of the day and potentially build a right shoulder on the daily charts in EUR/USD. A break of the neckline at 1.3800 would open the way to 1.3250, assuming we get a consolidation over the next few days around present levels. We trade now at 1.3873.
June 8 2009, 6:42pm | Comments »
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