At the Close. Traders challenging CBs… really?
Forex NewsThe week comes to an end with a serious liquidation of USD positions, who has seen big losses vs EUR, CHF and somewhat important vs GBP as well, while it has remained less heavily sold vs JPY.
If you would’ve asked me what I thought the closing price for the EUR/USD would be on Sunday, I would’ve definitely told you ’somewhere near the uptrend line @ 1.5275 or even below it”. The G8 meeting, claiming for a higher USD, and the ‘no’ vote of Ireland to the Lisbon treaty were two big weights that the EUR looked not able to deal with. However, to lots of us surprise (and stops, too), big specs once more challenged the CBs in their usual way, ie, doing exactly the opposite as the G8 would like, asking them to show their money o0r shut up.
But perhaps not everyone in that G8 meeting is upset with this week’s price action. The fact that both US and Japan Treasury Secretaries ‘exchanged’ some words on the Forex separately from the rest, starts to look like a new ‘conspiracy theory’, where the two countries will probably push the EUR higher, adding a bit more pressure to an economy already in struggle. If the paranoiacs @ the ECB don’t want to see this, it’s their problem. Blame on them. But we should not rule out further spikes and a new wave of market disorder that will lead to frenzy activity in both sides. June, perhaps one of the worst months to trade, is indeed being a very tricky and volatile month. And it’s not over yet…
Calling it a week here, I hope you enjoyed this week’s shows. Look forward to meeting you all again on Monday. Have a nice weekend.
