Thinking out loud here...
As the day progresses, I keep seeing more and more headlines appearing surrounding currencies and increased tension between China and the US/Eurozone regarding the Yuan appreciation. Keywords and phrases (mostly negative) appearing such as currency wars, protectionism, intervention, upheaval etc. which is really putting a negative mood into everything especially going into this weekend's IMF meeting.
If things get really heated, maybe it will mark a turning point from USD weakness to USD strength due to a flight to safety? We will see...
DailyFX released the weekly SSI report today, and the headline says "Euro Hits $1.40 but Forex Crowd Sentiment Points to Reversal". Their argument for a reversal is that traders haven't continued to add to their short EUR/USD positions as the market has moved higher, so there is a divergence here indicating a possible reversal. Here's where you can find the report released today http://www.dailyfx.com/forex/technic...e_story_1.html
As the day progresses, I keep seeing more and more headlines appearing surrounding currencies and increased tension between China and the US/Eurozone regarding the Yuan appreciation. Keywords and phrases (mostly negative) appearing such as currency wars, protectionism, intervention, upheaval etc. which is really putting a negative mood into everything especially going into this weekend's IMF meeting.
If things get really heated, maybe it will mark a turning point from USD weakness to USD strength due to a flight to safety? We will see...
DailyFX released the weekly SSI report today, and the headline says "Euro Hits $1.40 but Forex Crowd Sentiment Points to Reversal". Their argument for a reversal is that traders haven't continued to add to their short EUR/USD positions as the market has moved higher, so there is a divergence here indicating a possible reversal. Here's where you can find the report released today http://www.dailyfx.com/forex/technic...e_story_1.html