Intervention alert...The environment has deteriorated very rapidly to panic proportions and markets are on the cusp of an outright collapse. One option to stabilize sentiment would be for Treasury to intervene and buy USD. We think the risks of intervention are now at the highest of recent months, but this is not a reason to buy USD at the moment. Instead traders are probably better off tightening up stops on any short USD positions.
"The risk of intervention in the foreign-exchange markets by central banks in the U.S., Europe and Japan has increased to 30 percent, according to a probability model developed by Morgan Stanley." -Bloomberg
Full Article http://www.bloomberg.com/apps/news?p...d=afJ9rLBLBrLk
It seems to me intervention would be more likely at 1.6500 - 1.6700 or
higher. It probably won't do much much good unless the FED changes their
weak dollar policy's. Take a look around we have: Possible conflict with
Iran, Subprime mess getting worse, rising oil, weak dollar policy.
Long Euro @
1.5570 +368
1.5770 +173
1.5817 +126
1.5838 +100
1.5850 + 76
pheww... are you sure to put target that far?
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