EUR/USD RECORD HIGH
July 15th, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
…the dilutive effects of this aren’t baked into the dollar yet… I’m still unflinchingly short the dollar.
—EMERGENCY: U.S. GOVERNMENT TO TAKE “UNLIMITED STAKES” IN FANNIE AND FREDDIE
Let’s see if the euro can get a toe hold up here.
Gold and oil are up, but still rangebound. The story is the dollar right now.
The overhead resistance on West Texas Intermediate is intact at $147.27. Gold has a way to go before it’s up and out of the previous range, but it’s closing back in on a grand.
Via: Marketwatch:
Growing worries about U.S. financial institutions kept the dollar under heavy selling pressure against most major currencies Tuesday, clearing the way for the euro to set a new all-time high against the greenback above $1.60.
“Confidence in the U.S. currency is at very low ebb right now,” said Russell Jones, head of fixed income and currency strategy at RBC Capital Markets.
The euro soared as high as $1.6036 against the U.S. dollar in mid-morning London trade, according to FactSet, taking out the previous all-time high near $1.6020 set in April.
The euro subsequently trimmed gains, but remained 0.6% higher on the day at $1.6004.
The dollar fell 1.1% against the Japanese yen to 105.00 yen and was off 1.2% against the Swiss currency, nearing parity at 1.0045 francs.
A sharper-than-expected July surge in July U.K. consumer price inflation gave the British pound an added boost, with sterling back above the $2 level to change hands at $2.0101 in recent action, a gain of 0.8% on the day. Read about June U.K. CPI.
The U.S. currency found little lasting support from Sunday’s decision by the U.S. Treasury and Federal Reserve to unveil a plan to shore up giant mortgage buyers Fannie Mae and Freddie Mac.
Although Freddie managed to successfully auction $3 billion of new debt Monday, U.S. equities failed to hang on to early gains in Monday’s session. Meanwhile, worries about U.S. mortgage banks have moved to the fore, dragging down equities around the world and spurring a flight from the greenback into other currencies, analysts said.
A warning by top Japanese financial regulator Yoshimi Watanabe about large holdings of Fannie and Freddie debt further hurt dollar sentiment, said strategists at BNP Paribas.
Japan’s three megabanks and major insurance companies had nearly 9 trillion yen ($56 billion) in debt securities issued by U.S. lending giants Fannie Mae and Freddie Mac as of March 31, according to a report Monday by Japanese business daily Nikkei.
Meanwhile, the trade-weighed dollar index broke important chart support, “suggesting U.S. dollar momentum sellers are coming in,” the Paribas strategists wrote.
Some strategists said the dollar’s inability to gain support against the euro despite a sharp drop in the ZEW German economic sentiment indicator for July produced by the Mannheim-based Center for European Economic Research underscored the lack of confidence in the U.S. currency.
Gold already broke out, IMO.
http://www.tickerforum.org/cgi-ticker/akcs-www?getimagenr=7585
Your link doesn’t work for me, but breakout, for me, is around $1030. $1032.20 actually. Sure, the move above $950 (maybe that’s what you mean) is great for longs, but there’s loads of overhead resistance ahead.
The USDX still has a little ways to go yet. The dollar is hanging on by a thread. 70.79 is the last support. Not there yet.
So, EUR/USD broke out, IMO, but oil, gold and USDX are still trying to crack previously established levels.
We need to start curing ourselves of the fiat currency, floating exchange rate virus and stop looking at the price of things therein.
Look instead at the Gold/Oil ratio and it is at ROCK BOTTOM.
http://www.incrediblecharts.com/economy/gold_oil_ratio.php
975 / 146.39 = 6.66
To keep Gold/Silver to 66.6 peg, gold will have to rise to 1252…
18.8 * 66.6 = 1 252.08
or Silver fall to 14.63
975 / 66.6 = 14.63
Sorry about the bad link. See chart from my post here, 2nd from the top:
http://www.tickerforum.org/cgi-ticker/akcs-www?post=52235
Last candlestick on this chart is Friday’s.
@OUTSLAW
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I’m not signing into that thing so… Yeah.
Gah! It works if you type it in. Incidentally, the tickerforum is well worth joining.
Last try:
http://imageanon.com/static/bd73e0a882a4b1475671692dce2e6ea6.png
>>>It works if you type it in.
I don’t know what that means.
Re: the chart:
Like I said, wake me up above $1030.
>>>the tickerforum is well worth joining.
Not to me.