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Rallies limited in EUR/USD; stocks on their lows
By Jamie Coleman || November 19, 2009 at 16:14 GMT
|| 9 comments || Add comment
EUR/USD continues to run into selling on rebounds with bounces limited to the 1.4890 area. US equities are at their lows of the day helping put some renewed downside pressure on the EUR, which is now at 1.4860.
Traders are reluctant to sell EUR/USD aggressively given the market’s inability to hold below the 1.4850 level in EUR/USD. Commodities continue to unwind gains, with the CRB shedding 1.5% so far today.
Commodity currencies trade the worst. AUD/USD is in the 0.9140s and USD/CAD is back in the high 1.0670s.
Feels like one of those mid-day New York fizzles… where everything just settles into a volatile range until later in the day.
bingo…
Since stocks traders are very tough, may be everybody is waiting for the stocks to rebound.
Jamie, I have been pondering on your post about Liquidity yesterday…added with Blackies comment last night about China sort of running the show in the Summer in FX movement………So, really what kinda of happened was that besides buying Copper, Houses, China Stocks……………..the China Citizens that got to borrow like crazy this year speculated in FX………and add all this to their Bubble Parade? They sort of had a vested interest….if they could pump up our economy by keeping the dollar low then we would get all better and go back to buying stuff from them? Am I getting it correct? Or am I still missing major pieces in my Analysis?……btw last night, the Shanghai Copper Futures closed just a little down so imho a lot of true “beanie baby” believers over there still, I think it is the believe that the Snow will cause a demand for their Copper? It won’t, but they are grasping….this is so darn interesting.
major typos above, sorry, I clicked before proofing…I do that a lot.
I can’t speak to what the Chinese public is doing in the FX market, but the cnetral bank and their proxies are very visible. They generally have been guiding the dollar lower, but at a pace that slow enough to keep the alarm bells from ringing too loudly around the globe. They have also done it in incredibly profitable fashion, as they have done for many years now. This helps cushion any loss of purchasing power their dollar-denominated holdings may cause…
Actually the Chinese public has little channels to take part in currency trading. The presence in the currency markets are mainly government owned banks.
Visible…How do we see them or track them?…besides following FX LIVE which is the best find I made this last week or so ago…
I meant I found your site a week or so ago, the Site itself is the GREATEST….OK so this is sort of all making sense to me (I am rather slow,duh)….China hates paying higher prices for Commodities when there is not much of a demand and stops doing so when it gets to certain price levels which we saw last year….Prices on those Commodities nosedive….Copper gets to 1.50 or so and China Govt starts buying it like crazy….then they move down the dollar so their investment grows even more and everyone feels good and wants to buy their Copper, etc at a higher price……but like we saw in less new homes being built yesterday, when demand slows down and price too high to buy more…China stops paying for the commodities again, and has no interest in supporting a lower dollar so much….so Copper, etc drops and the cycle repeats itself? Is that it sort of in a Basic Nutshell.