What was becoming a strong steady march uphill the last 2 months has now suddenly become a rout and it's not over yet for the USD. Undoubtedly the first charge at the 100 mark vs EUR has run into some serious flak thanks to some more cautious tones from the Fed on rates and come friday tomorrow there should be more closing out of the weaker long positions on the USD. Consequently rallies in commodities like Gold and Crude Oil. George Soros yesterday cast a terrible shadow over the ECB yesterday with his discussion of a Grexit, read here on Business Insider -
http://www.businessinsider.com/soros-greece-is-now-a-lose-lose-game-with-a-50-change-of-leaving-the-euro-2015-3
No matter how ugly and in spite of venerable George Soros dire predictions for a Grexit, the Euro zone is beginning to defy the odds with the ECB starting to look organized on its bond buy back program, raising its cap on Greek banks by more than 1bn EUR, and German economic data is starting to look stronger even though the Dax fell slightly on fears a stronger EUR would hurt exports, the data suggests that the euro zone is over the worst dark days of 2011/12. However all is not over. Bloomberg today runs a really dire economic report as follows -
http://www.bloomberg.com/news/articles/2015-03-25/a-murky-sloppy-muddle-how-greece-s-exit-from-euro-could-happen
The report discusses the scenario for Greece which all turn out to be bad! so traders be wary of volatility on the USD today as large specs may close out and profit take with little support to buoy the USD before the weekend. Currency trading with the USD in a climate of greater volatility entails high risks. Traders are now faced with the possibilities of whipsaw and the need for larger stop losses and or hedging with options contracts should positions need to be carried over what is going to be a choppy directionless friday in the currency markets.
http://www.businessinsider.com/soros-greece-is-now-a-lose-lose-game-with-a-50-change-of-leaving-the-euro-2015-3
No matter how ugly and in spite of venerable George Soros dire predictions for a Grexit, the Euro zone is beginning to defy the odds with the ECB starting to look organized on its bond buy back program, raising its cap on Greek banks by more than 1bn EUR, and German economic data is starting to look stronger even though the Dax fell slightly on fears a stronger EUR would hurt exports, the data suggests that the euro zone is over the worst dark days of 2011/12. However all is not over. Bloomberg today runs a really dire economic report as follows -
http://www.bloomberg.com/news/articles/2015-03-25/a-murky-sloppy-muddle-how-greece-s-exit-from-euro-could-happen
The report discusses the scenario for Greece which all turn out to be bad! so traders be wary of volatility on the USD today as large specs may close out and profit take with little support to buoy the USD before the weekend. Currency trading with the USD in a climate of greater volatility entails high risks. Traders are now faced with the possibilities of whipsaw and the need for larger stop losses and or hedging with options contracts should positions need to be carried over what is going to be a choppy directionless friday in the currency markets.
USDX
96.794 -0.132 -0.17% Support 96.259 Resistance 98.029
EUR
1.096875 +0.003450 +0.32%
Support 1.08567 Resistance 1.10847
Crude Oil
51.04 +1.83 +3.83%
Support 46.10 Resistance 51.02
Gold
1196.95 +6.70 +0.56%
Support 1,180.9 Resistance 1,207.3
Pieter Bergli - DeLoren Trust Holdings
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