EUR/USD Breaks Support on Horrible US Data

with these report now i think we can still expect pull back to 1.4537 or more.

Scuse me, but I tought that Bad Us Economic data are normally bearish for the US dollar, aren't they?... Why do you link the depreciation of the euro (from the Eurzone economic growth concern and panic on the stock market) with the US Negative Economic Data?? There is nothing normal in today's Market Moves... After the Mommentum Move takes place we can find all sorts of reasons... But clearly there was an corroborated orders move from the institutional traders who took by surprise most of the retail traders.

With respect,
Doctortyby

Droctortyby,

Probably should read up on riskon/risk off. There are articles on this site as well as others.

As counter intuitive as it may seem, the US stock market and the euro are positively correlated. Bad economic news for the US will drive the euro down, the stock market down and the USD up.

Todays move is nothing special.

Mathematical hazard, FED gives to banks at almost zero interest rate and banks buy government bonds at 2% rate; so just a call to fed, banks make at least 2% and all these gains go to bankers in form of salaries and benefits and left over send abroad. Where do the rich people fit in this? Fed rewards some people 2% just being super rich and the poor fellow, no chance; your jobs are in Far East? Who to blame, of course, the president; what about governors and mayors? Governors and Mayors are not elected to create jobs! What about Senators and Congress reps? Ooh, they are law makers representing a special interest group! Ooch, I get it; being poor is just a curse! So USA is going to be poor, right? May be, US is taking a highway that poor people are taking; I see, so the final US destination is poorland. Your guess is as good as mine!

Any country, no matter how powerful militarily or abundance of natural resources but without money or in debt is always at the mercy of the country who has the money or at the mercy of her creditor. Empires are finally replaced by their creditors, no debtor ever over took his creditor; the fit that can’t be done. DOW is going back to 6000 but if we are not lucky 3000 is not impossible. XAU, CHF, JPY run and run....

Thanx Aaronward, but from the economic perception, the risk appetite psyhology is more or less a rule. What success ratio would you say this correlation (Euro/US stocks) has?? Anyway seems like more often these so called fundamental "rules" of trading correlated with the roumors spread in the media bring more loses (or bigger loses) to retail traders than winners
Don't get me wrong ...I am just trying to get out of the "croud psyhology".

Doctortyby

don't understand the guest comment.
He couldn't be much far from the truth as the PA showed.

Getting away from mass psychology at this time is a sure suicide unless you have a deep pocket like China (BOC), it is not a time to be contrarian...go with the cloud..they short you short, they buy you buy!! I am buying XAU because cloud is buying it...I bought EUR yesterday because the cloud did the same..I am selling today because of the cloud...

Excuse me want to ask, how the prediction market my friends about the euro, because I lose 4
$ 7,000 when the price drop was

Doctortyby,

No real rule, only a tendency. Sometimes you can watch the Euro and the US stock market dance in a synchronized fashion, with peaks and valleys at the same moment.

Like most correlations, it is a useful way to interpret history, but not a great predictor of what is going to happen. They both go down at the same time, not sequentially.

Stocks all around the world go up and down together. Correlation is about 90-95%. The euro goes up and down with the stock market maybe 70% of the time. Both numbers are guesstimates at best and I would be delighted if somebody with real stats could jump and and educate us.

thanks for now what a good move that I must do in order to cover all these losses?

i think it will move up

Nothing unusual here.

Euro refuses to go down below $1.4 even after a 15%+ selloff in the stock market. Eurozone prints money and Euro goes up. USA prints money and Euro goes up. Go figure. Some countries don't want USA as a reserve currency anymore. To heck with being bullish on the USD until Bernanke is out.