EURUSD

Yes E/C and I'm curious to see what the dow does today. nice little jump on the open there..lets see if we can rally on a day like today..

May 27 (Bloomberg) -- Stocks surged and the euro snapped a three-day decline against the dollar as China said it remains a long-term investor in Europe, damping concerns that the region’s debt crisis will worsen. Commodities jumped and Treasuries fell.

The MSCI World Index, a gauge of equities in 24 developed nations, climbed 1.9 percent at 9:46 a.m. in New York. The Standard & Poor’s 500 Index jumped 1.9 percent. The euro strengthened 0.4 percent against the dollar, rebounding from near a four-year low, and appreciated 1.1 percent compared with the yen. Oil and copper advanced for a second day. Yields on 10- year Treasury notes jumped 12 basis points to 3.31 percent.

The Stoxx Europe 600 Index climbed to a one-week high and the Dow Jones Industrial Average returned above 10,000 after closing below the level for the first time since February yesterday. China’s foreign exchange regulator said reports that it was reviewing its euro holdings are “groundless,” boosting sentiment in the wake of a debt crisis that wiped about $6 trillion from the value of equities this month.

“The news out of China is providing some relief, while better data out of the U.S. is stoking some cautious optimism in markets,” said Melinda Burgess, a foreign-exchange strategist at Royal Bank of Scotland Group Plc in London.

U.S. stocks rallied even after government data showed the economy grew at a slower pace than previously calculated in the first quarter and jobless claims fell less than economists estimated. Benchmark U.S. indexes climbed in early trading yesterday after sales of new homes rose to the highest level in two years and growth in durable-goods orders topped economist estimates.

GDP, Jobless Claims

The 3 percent increase at an annual rate in U.S. gross domestic product was less than the median estimate of economists surveyed by Bloomberg News and compares with an advance estimate of 3.2 percent issued last month, figures from the Commerce Department showed. Initial jobless claims fell by 14,000 to 460,000 in the week ended May 22, Labor Department figures showed. Economists on average forecast claims would drop to 455,000, according to a Bloomberg survey.

The Stoxx 600 gained 2 percent, extending yesterday’s 2.4 percent surge, while the MSCI Asia Pacific Index jumped 2 percent. Man Group Plc, the biggest publicly traded hedge fund firm, soared 7.8 percent in London after reporting earnings that topped analyst estimates.

BHP Billiton Plc rose 3.7 percent and Rio Tinto Plc advanced 3.5 percent after the Australian newspaper said the Pacific nation may change the rate at which a proposed mining profit tax takes effect.

BP Rallies

BP Plc gained 5 percent as the oil company attempts to plug the Gulf of Mexico spill that cut the stock’s price by a quarter. The Los Angeles Times reported that the process has been able to stop oil and gas flowing into the Gulf of Mexico from a damaged well. BP spokesman Robert Wine was unable to confirm the report.

The S&P 500 erased yesterday’s 0.6 percent decline. Benchmark indexes fell in the final hour yesterday as a report that China may review investments in European government bonds spurred concern the debt crisis will worsen.

China’s sovereign wealth fund denied reports that it’s reviewing holdings of euro assets and said it’s maintaining its European investments.

“Europe has been, and will be one of the major markets for investing China’s exchange reserves,” the State Administration of Foreign Exchange said in a statement on its website today. The official Xinhua News Agency reported China Investment Corp. President Gao Xiqing said yesterday Europe’s turmoil “hasn’t had too big of an impact” on CIC’s investment decisions.

‘Significant Move’

U.S. stock markets are oversold and may rally strongly in the next few days, said investor Barton Biggs, who runs New York-based hedge fund Traxis Partners LP.

“I think they’re going to stabilize in this general area, and then we’re going to have a significant move to the upside,” Biggs, whose flagship fund returned three times the industry average last year, said in a Bloomberg Television interview.

The MSCI Emerging Markets Index advanced 2.1 percent, extending yesterday’s 3.2 percent rally and heading for its biggest back-to-back gain since July 2009. Benchmark indexes in China, South Korea and Hungary rose more than 1 percent today.

Templeton Asset Management Ltd.’s Mark Mobius said he’s been buying stocks in Brazil, Russia, India and China in the past month and the slump in emerging markets is a “correction” in a bull market.

Emerging Markets Prediction

“Despite the fact that a lot of people think that we are entering into a bear market, we don’t believe so,” Mobius, who oversees about $34 billion in emerging markets as Templeton’s Singapore-based executive chairman, said in an interview yesterday in Cairo. “When the time comes, emerging markets will recover faster and in a big way.”

The yen and the dollar declined as the gains in stocks damped demand for the currencies as a haven, encouraging traders to buy higher-yielding assets. The Japanese currency slid against all 16 of its most-traded counterparts while the dollar declined versus all but the yen. The South Korean won appreciated for the first time in three days after the central bank forecast a $2.5 billion current-account surplus for May.

Crude oil for July delivery advanced 2.1 percent to $73.01 a barrel in New York trading. Copper for delivery in three months jumped 1.7 percent to $6,895 a metric ton on the London Metal Exchange. Aluminum, nickel and zinc also gained. Palladium for immediate delivery added 3.3 percent to $453.30 an ounce, advancing for the first time in three days.

Treasuries Fall

Treasuries fell for a second day as the government prepared to sell $31 billion of seven-year notes today. The German 10- year bund yield rose four basis points to 2.69 percent before a report economists say will show inflation accelerated this month, fueling concern governments will struggle to entice buyers amid record-low yields and improving economic data.

The cost of insuring against losses on European corporate bonds fell, with the Markit iTraxx Crossover Index of credit- default swaps on 50 mostly high-yield companies dropping about 20 basis points to 581.1, according to Markit Group Ltd. That’s still near the highest level in 10 months.

To contact the reporter on this story: David Merritt in London on [email protected]

Last Updated: May 27, 2010 09:49 EDT

give the monkey jockey hell...............

hey if it breaks eu higher.. to give a better sell area

lol, I hope that was a last USD cry today.. Lets see..

Overall trend is down and will be down for the next fews years. EU problems will not fix themselves overnight. I may take EU 10 years to recover. Sure the market will retrace upwards a few 1000 pips within time but until EU fixes the it's problems and/or the US announces, "we are flat broke", then expect shorting opportunity for a minimum of 5 years.

you will hear such news when it will be 2/3 cooked already

hey man, good mornin

i gotta start drawing more charts on dxy, i rarely move down to the smaller tf's on dx and should. that thing'll prolly break, dows rallying au's onto new retrace highs and looks like it wants the 50 percent of that down move at least. maybe tomorrow big sell of that hold it up all day?? i just haven't had the balls to go long this week except for when I'm watching every second and closing some/all very quick.
i had one order sitting at 2134.5 in case spread jumps or something on me long on one account. and yeah, monkeys..

greenbacks or bluebacks?

It's already cooked, everyone knows..for some reason the market doesn't care right now..why do you?

We all care and have since November about Dubai, then Europe/China. This is what the broader market is worried about right now in the short to medium term. say whatever you want about the dollars last run up..it don't change the monthly/weekly charts

few years?? are you that confident on the euro??

hey, stop speaking that way to euro, we will have our day as before! hehehe

Who's buying? Does anybody have the USDx chart or does someone know where I could find one?

Rock and Roll..

How's that feel baby?

already sitting E/U 1.22096, U/C 1.16467

Netdania.com

great Java real time chart

Was me. A broken clock is right twice a day .

i would like 2360 touched and rejected. at least for a few hours.. the shown was a 15m chart.. there are bigger ones on eurx and eu.. that are usd negative.

When this thread started, the EUR/USD was in the exact same area.

Back then (2004-2005) everyone was talking about the "freight train" that was the U.S. Economy and how it couldn't be stopped.

....and then it did. and did badly. And all the doomsdayers came out and read the future of the USD in their crystal balls.

Now the cycle has reversed again and now the EUR is the doomed currency of choice.

When this thread hits 32,000 a few years from now, it will be funny to look back and all the pissing contests that have erupted from the sudo-political analysts in this thread over the years.

Fortunately, charts are excellent at telling you where you are right now and where you MIGHT be in the very near future based on probability. A lot like weather forecasting.

Much further out than a few days and it's pure speculation or bias. If anyone was really that good at forecasting FX trends, this thread would be full of billionaires.

Hey Tudor, I'm expecting about 10 years to pass before EU even starts to see it's economy turn around. But I do see a quicker turn around if EU increase taxes and regulate their financials. Not saying it's the rights steps to take to turn their economy but it would begin to put some immediate money in their pockets. In my long investment in the Euro, I am long. Will not be shorting our investment in the Eur. Instead, assuming we Euro continues to decline, we will be looking for long retracement opportunities here on out. Now our short term investment in Eur is currently short but we'll continue to swing trade long and short .. go where the money goes.

free lunch is over. get a job.