Kess, I think this was more an intervention in more or less thin markets (friday and many traders might have vacation already).
Regards - Xaron
Regards - Xaron
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DislikedHello guys,
I realy have a Question i guess most of us have the same question,IF anyone know the answer will be great to tell us
EUR/USD Average range/daily 130 pip ,In last 24H drop 300 pip!!
In 20 days drop 1000 pip from 1.60 to 1.50!!
We was talking about slowing economy in USA and weaken $$ and european improving and challenging economy future even some guys was expecting higher eur/usd " Does USA economy became in few days VERY strong???
What happen to EUR WHY THIS WEAKENESS!!
I'm Really looking to find out the analysis explanation why eur drop AND $$ shooting up while we was talking about weaken us economy and $$ befor 2 week!!
Only one thing come to my mind "Political reasons move the market."
Looking forward to know what's ur opinion guys , i guess we all in same boat
ThanksIgnored
DislikedHere is an interesting article:
http://www.bloomberg.com/apps/news?p...HIk&refer=home
``The most important aspect of the dramatic collapse in the euro dollar is the absence of confirmation from other markets,'' said David Woo, global head of currency strategy at Barclays Capital Inc. in London. ``None of the typical drivers of the euro-dollar in the past couple of years could have accounted for the magnitude of this move, which leads one to conclude that this is a technical-driven move. From that point of view, we do not think that this move is sustainable.''Ignored
DislikedHello guys,
I realy have a Question i guess most of us have the same question,IF anyone know the answer will be great to tell us
EUR/USD Average range/daily 130 pip ,In last 24H drop 300 pip!!
In 20 days drop 1000 pip from 1.60 to 1.50!!
We was talking about slowing economy in USA and weaken $$ and european improving and challenging economy future even some guys was expecting higher eur/usd " Does USA economy became in few days VERY strong???
What happen to EUR WHY THIS WEAKENESS!!
I'm Really looking to find out the analysis explanation why eur drop AND $$ shooting up while we was talking about weaken us economy and $$ befor 2 week!!
Only one thing come to my mind "Political reasons move the market."
Looking forward to know what's ur opinion guys , i guess we all in same boat
ThanksIgnored
Dislikedhttp://goldmoney.com/en/commentary.php
Snippet:
Mystery Solved
On July 15th the US Dollar Index closed at 71.87, the lowest close since reaching its record low in April. This index was in the process of breaking down, and in fact it had actually fallen out of its uptrend channel on the following chart.
http://goldmoney.com/en/images/comme...2008-08-07.gif
However, rather than continue lower and fall off the edge of the cliff, the Dollar Index suddenly and mysteriously reversed course. It has now risen on 12 of the 17 trading days since reaching that low, and closed today at 74.55, a 5-month high. What caused this index to suddenly pull back from the brink and then reverse course to shoot higher over the past three weeks?
The Federal Reserve did not suddenly contract the amount of dollars in circulation. Its latest H.6 report shows that both M1 and M2 expanded in recent weeks, so there was no shortage of supply.
The Federal Reserve did not raise interest rates during this period. Consequently, inflation adjusted interest rates remain negative. In other words, the annual inflation rate is higher than the amount of interest one can earn on a 1-year dollar deposit, which is highly inflationary and a major disincentive to holding dollars
From James Turk
And Now The Answer !!!
Snippet:
On July 16, 2008 (the closest date of the weekly reports to the July 15th low in the Dollar Index), the Federal Reserve reported holding $2,349 billion of US government paper in custody for central banks. In its report released today, this amount had grown over the past three weeks to $2,401 billion, a 38.4% annual rate of growth. To put this phenomenally high growth rate into perspective, for the twelve months ending this past July 16th, assets in the Federal Reserve's custody account grew by 17.3%, which is less than one-half the growth rate experienced over the past three weeks.
So central banks were accumulating dollars over the past three weeks at a rate far above what one would expect as a result of the US trade deficit. The logical conclusion is that they were intervening in currency markets. They were buying dollars for the purpose of propping it up, to keep the dollar from falling off the edge of the cliff and doing so ignited a short covering rally, which is not too difficult to do given the leverage employed in the markets these days by hedge funds and others. So central banks pushed in one direction and funds and traders then stepped on board. In other words, central banks ignited the fuse of a bear market rally.
With this intervention, central banks have bought some time. But alas, they have not fixed the problem. Central bank intervention does not make the dollar "as good as gold", the description that once accurately described the dollar.
In the final analysis, it is fundamental factors that determine the course of markets and the process of price discovery that results from them. Central bank intervention - like fiat currency itself - is ephemeral. In contrast, gold lasts throughout the ages. So what would you rather own? A sick dollar that it requires central bank intervention to prop it up? Or gold?Ignored
DislikedWould he.
It sounds too well authored to be anything but fact.
Oh wait... Mr Turk's latest book is titled "The Coming Collapse of the Dollar"
I wonder... if the dollar doesn't collapse... will that hinder book sales?Ignored
DislikedLOLOLOL
Well researched sir!
If oil continues to fall be prepared for EUR to do the same. There is talk of oil going to 100 before it climbes to 150 ( and we all know it will have to climb back to 150).Ignored
DislikedHe's an analyst for Barclays (read pro EURO) who currently holds a ton of EURO longs. I'm sure he's going to conclude this move isn't sustainable - if it is - his bonus check won't pay for the gas in my Porsche.Ignored
DislikedHmmmmm. My prediction that the price would rise because it was close to its daily range low, looks pretty silly now.
Hey ho.
Ignored
DislikedWould he?
It sounds too well authored to be anything but fact.
Oh wait... Mr Turk's latest book is titled "The Coming Collapse of the Dollar"
I wonder... if the dollar doesn't collapse... will that hinder book sales?Ignored