just before G20, SPX made a new low on Thursday, though Dow did not. It remains to be seen if the rally can be sustained.
doubt is there is any immediate forex reaction post G20.
Point to note is the coming Thanxgiving on Nov 27. 8 more days of trading. Which direction ? USD more strength ? or end of journey ?
Million Dollars quesiton no doubt.
The Asian countries, Taiwan, Korea, Japan, China are coming together to increase monetary collaboration, may be some monetary alliance via the Asia Development Bank. May be in anticipation of next bout of Asian currencies weakness. The emerging economies are next target of insitutions selling.
From chart above, done on Friday early morning, it shows EURUSD failing before the downtrend line. Indeed Friday it closed lower from peak. It closed the week at 1.2605. If EURUSD cannot make a decisive move below 1.2400, it may wait till Thanxgiving before making a dash towards 1.2000.
Before the G20, White House spokeswoman said that US is more concerned on finding the cause of the current crisis than the solution. Everybody knows US is the problem itself.
Now Congressman blasting Treasury Kashkiri for flip-flopping on the use of monies on saving mortgage owners. More confusion in congress, more confusion in the market, more strength to the DOLLAR.
Iran planning to meet with Russia in Cairo on Nov 29 to engineer some output cuts.
Once the market stabilises, the DOLLAR is doomed, by meanwhile it is on steroids.
The much awaited bottom of the stock market is coming. The world would watch in awe. However am waiting for some celestials signs.
Incidentally, South Californians have been drilling for earthquake.
The divine would gives its signal when Enough is Enough.
By the way, all these selling in stocks are all manipulation by Hedge Funds and Institutions. Nothing is random.
1 comment:
Well, if you look at a weekly, or even a monthly charts. The drop of Euro is awesome. It takes a while for the ship to turn.
I expect Euro to move lower towards 1.2000, probably with some move higher to flush the shorts.
Anyway there is no news out there in G20 to trigger currency moves.
The only notable thing is the proposed close monetary cooperation among the Asian currencies. This may take some wind out of USD.
Bush was adamant to take center stage at the G20. Wait for the next G20 in April. Probably the ship may turn in 6 months time.
So be prepared for the long haul if you are long currencies other than USD.
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