Eur/USD

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Quote from downrivertrader:

Mon amis,

In my humble opinion, all Monsieur Trichet did was create a buying opportunity. I find it hard to believe a man in his position would provide comment to many of the questions that he did. We should all sell the damn Euro based on his incompetence. He absolutely must have other motives.

In any case, keep an eye on things today. Watch to see how the day closes. Lots of volume and if we close in the middle of the range, that should tell you that there was a lot of buying a "perceived" bargain prices by the market movers. That's my guess and I was a buyer.

Good luck DRT
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Of course he had other motives. He´s senstitive to a dollar rout ' they all are. Such a rout and sudden rise in the Euro could derail any chance of a recovery in the Eurozone´s highly dependant export market.
 
Quote from Ivanovich:

Of course he had other motives. He´s senstitive to a dollar rout ' they all are. Such a rout and sudden rise in the Euro could derail any chance of a recovery in the Eurozone´s highly dependant export market.
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Smells to high heaven, doesn't it?

Hope it drops for a while...
dips= buying opportunity.
 
[23:18 EUR/USD: Opinions Divided On Why Trichet Turned "Dovish"] Sydney, April
7: Analysts are divided as to why ECB President Trichet went out of his way to
dampen expectations of a rate hike in May. One theory is that the ECB was
starting to worry about the recent strength of the Euro against the USD and JPY
and forecasts of high it would go between now and the end of the year. There has
been talk recently that the ECB and EZ Finance Ministers were concerned that the
strength of the EUR/JPY in particular would hurt the export-led recovery in
Europe and the combination of stagnating growth and higher interest rates would
only exacerbate the problem. Another theory making the rounds is that a split
has developed within the ECB council between the "hawks" and "doves" and the
even-handed comments from Trichet yesterday were designed to stop individual
members speaking out and giving the impression of a house divided. At least one
consultant feels that the ECB might still raise rates in May and many feel that
we will at least see a hike in June. In the meantime it is likely that the
EUR/USD and EUR/JPY will correct lower.
 
I also think EUR is going lower. I don't think all of the pre-Trichet buying has been reversed yet. I think there's at least another 100 pips of downside.
 
Closed my 3 short in EC from 1.2348 and 1.2284 for about 500 pips. Was a very nice week. I think there will be a buying opportunity next week.
 
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