DislikedYou're right. This is speculative, and based more on fundamentals if anything.
We could definitely go higher in the short term, depending on what they are able to pull off!
In your opinion, should today's meetings be the catalyst which takes us either higher or lower, at least for the time being?Ignored
DislikedPT. If I read your analysis correctly, In the event of an surprise rate cut today, that would be Euro positive? At least temporary. No rate cut euro negative?Ignored
This week the market will be focused on the outcome of two events.
1. They will be looking to Draghi to do something to help. It doesn't matter if it is a rate cut or some form of liquidity injection, or even a move towards supporting a banking union. In this case, some bears will cover their shorts... not because they think it's a buying environment, but just because such an outcome will not offer an incentive to keep selling at the moment. So if the market is not going anywhere, it's time to take profit.
2. Bernanke is testifying tomorrow in front of the Joint Economic Committee. The market will be listening very closely for any clues regarding further easing. If he does drop some clues that he is ready and willing to ease more, then the USD Bulls will also want to take some profits as there is no longer an incentive to keep buying Dollars.
There are other events but they will be overshadowed by the two events mentioned above.
These events are the Spanish 10 Year Bond Auction tomorrow and the UK MPC rate statement (also tomorrow)
Like I said yesterday... Welcome to Jumpy June.
Those who say it cannot be done should not interrupt those who are doing it