Thursday, May 20, 2010

Euro Currency Rallies

This morning shortly after the open, I commented about the Euro (FXE) and how it stopped moving lower in the face of collapsing stock and oil prices. The charts suggested (in my opinion) that something  bullish was going on with the Euro and a few hours later the Euro surged higher. The euro had its best day in many many weeks!

My thinking was that a rising Euro might lift stock prices but obviously that didn't happen today as the stock market closed on its low. I still feel that stocks may bounce here which is why I covered my shorts early this morning.  I'll patiently wait for a good rally in the stock market to put on some new short positions.

1 comment:

Anonymous said...

I've heard rumors today that ECB intervened in FX markets. Possibly, as euro was the only asset that was green. If this is indeed only intervention, the effects will be short-lived. On the other hand, it may produce short covering.


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