USD rally for a 4th straight day prior to Easter just about says it all. specs are positioning themselves for US employment data to show strength which would then further the case for the sooner than later rate hike camp. The ECB/ Greek drams just plods on and on and is beginning to tire traders. "Medium term, there is a very clear potential that Greece should go out [of the euro zone," Michael Strobaek, global chief investment officer at Credit Suisse, commented early this week. EUR has made it's largest three-month percentage decline against the USD since it was created in 1999, dropping a massive 11%. That is a massive figure that really needs to be digested slowly because this story is not like the YEN where the BoJ regularly makes fund of the markets in manipulating the currency to devalue to artificially aid its huge exporter business block and subsequent political favor. This story is about debt and were talking debt that even Germany is baulking as the politics of saving Greece becomes uglier by the day for politicians. should a Grexit occurr as George Soros predicts as almost 100% likely, then the bond markets wont be moved much because what more can happen? The worst has already been priced in and can be shrugged off in an instant. so EUR longs in the market beware because all fundamentals for support are crumbling and it will only take a spate of 1-2 decent US economic data reports to spur the USDX through the 100 mark in a second more daring putsch. Gold is struggling to hold value in the face of USD safe haven bets see on Reuters here full article -
and more weakness is expected for gold and oil if the USD pushes the 100 mark in the days to come so market longs need consider covering position because reversals are highly unlikely.
USDX
98.351 -0.028 -0.04%
Support 97.737 Resistance 99.467
EUR
1.073820 -0.008365 -0.77%
Support 1.06453 Resistance 1.09113
Crude Oil
47.44 -0.16 -0.33%
Support 46.42 Resistance 49.32
Gold
1183.275 -1.670 -0.14%
Support 1,171.9 Resistance 1,195.7
Pieter Bergli - DeLoren Trust Holdings
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