Euro Bullish Breakout
In yesterday’s blog I noted that the Euro / US Dollar cross was approaching breakout territory. The Euro last Friday put in the highest weekly close versus the Dollar since late May and was threatening last week’s high at $1.317. Yesterday took the price of the Euro over that level and today it has followed through, holding above last week’s high. This is a significant event for the Euro and as I said yesterday is part of the reason why Gold is under pressure near $1700 per ounce, though the bulls refuse to give up this level in any appreciable way. With the Fed announcing a new round of unsterilized QE there’s little chance that the sociopathic eaters at the gold and JPMorgan trading desks will be able to go on another large raid of Gold, rather Euro strength will allow them to keep the price in this price range until options expiration on Friday.
After that, however, all best are off.
For those still not convinced that the Euro will not only survive but thrive versus the Dollar look no further than the action in the Euro / Singapore Dollar cross. If their is one currency that both the Dollar and the Euro has been systemically weak against for years, it’s the Singapore Dollar. Last week we saw a weekly breakout close on the EUR/SGD cross, while the USD/SGD cross has dropped. So, the Singapore Dollar is rising versus the U.S. Dollar and falling versus the Euro. If we see closes on Friday which confirm these breakouts we’ll know what the markets will look like for most of 2013.
Tom Luongo
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.
Twitter •
Most Popular Content
- Pressure Mounts on the British Pound Following Autumn Budget
- Impact and Outlook for the U.S. Economy on Rate Cut
- Gold and Copper Markets Respond to Powell
- US Stock Market Faces Turbulence and Mixed Commodity Reactions
- Pound Holds Strong as Labour Wins with a Landslide
- Crude Oil Prices Rally as Inventory Declines and Rate Cut Hopes Emerge
- Strength in Gold and Copper Continues – But for How Long?
- Weak Payroll Data Sends Stocks Higher
Currency Articles - Nov 3, 2024 13:35 - 0 Comments
Pressure Mounts on the British Pound Following Autumn Budget
More In Currency Articles
Gold and Oil News - Aug 24, 2024 16:06 - 0 Comments
Gold and Copper Markets Respond to Powell
More In Gold and Oil News
- US Stock Market Faces Turbulence and Mixed Commodity Reactions
- Crude Oil Prices Rally as Inventory Declines and Rate Cut Hopes Emerge