As i mentioned yesterday, right after the Fed meeting, the dollar will recover from it´s short lived option related downswing.
There was nothing else to expect, in my opinion, because there really wasn´t anything new for the markets. Interest rates stayed unchanged, only the date for a rate hike was shifted a few months into the near term future.
So, if i had been a euro trader this month, i would have waited exactly for this to happen, as market participants were looking for a better price to get into the euro short, again. Now, after having risen almost 500 pips up to 1.1040, i consider EURUSD is being prepared for a 1000 pips or even more fall into pairity. The upside yesterday was needed to load the gun again, as you know the markets will never move in only one way.
As some of you might have thought, that yesterdays event was hurting the us economy, it was strengthening the stock market instead. Only the dollar got hit a bit, but this was only option related, as no one was able to explain this enormous move by the time.
And overall, what does that tell us? The dollar strength hasn´t vanished, and now traders are adjusting their positioning to participate from the general direction, again.
Im glad i left my Euro shorts last week
Keep cool, and good luck to all!
There was nothing else to expect, in my opinion, because there really wasn´t anything new for the markets. Interest rates stayed unchanged, only the date for a rate hike was shifted a few months into the near term future.
So, if i had been a euro trader this month, i would have waited exactly for this to happen, as market participants were looking for a better price to get into the euro short, again. Now, after having risen almost 500 pips up to 1.1040, i consider EURUSD is being prepared for a 1000 pips or even more fall into pairity. The upside yesterday was needed to load the gun again, as you know the markets will never move in only one way.
As some of you might have thought, that yesterdays event was hurting the us economy, it was strengthening the stock market instead. Only the dollar got hit a bit, but this was only option related, as no one was able to explain this enormous move by the time.
And overall, what does that tell us? The dollar strength hasn´t vanished, and now traders are adjusting their positioning to participate from the general direction, again.
Im glad i left my Euro shorts last week
Keep cool, and good luck to all!
