think the market has realised that taper does not mean rate hikes (like it took a genius to work that one out) but for that reason the stock markets are not reacting and the risk currencies such as the euro remain well supported.
I think the real test will only come when the s&p turns and when the actual cut comes,
I personally think that the euro should be lower the US economy is clearly showing greater sign of improvement, whilst Europe is still dragging its heals, that said i think it is better to not fight it whilst flows are on the up, and only consider shorting once it shows that's what it wants to do. By this i mean the structure / channel on the 4 h / daily breaks down
as an aside the s&p is at a high and is not going to attract much inflows where bargains hunters may look at European and UK stocks where prices are at much lower value.
I think the real test will only come when the s&p turns and when the actual cut comes,
I personally think that the euro should be lower the US economy is clearly showing greater sign of improvement, whilst Europe is still dragging its heals, that said i think it is better to not fight it whilst flows are on the up, and only consider shorting once it shows that's what it wants to do. By this i mean the structure / channel on the 4 h / daily breaks down
as an aside the s&p is at a high and is not going to attract much inflows where bargains hunters may look at European and UK stocks where prices are at much lower value.