AUTOREFRESH 
EUR/USD opens little changed, barrier option protection capping rally so far
By Gerry Davies || March 17, 2010 at 06:06 GMT
|| 8 comments || Add comment
EUR/USD sits at 1,3780, hardly changed from North American close Tuesday around 1.3770, Asian trade confined to uninspired 1.3764-1.3788 range. So far protection of barrier option interest up at 1.3800 is capping recent rally.
Euro zone data today is thin on the ground:
10:00 GMT: Euro zone labour costs Q4 expected 2.7% y/y
10:00 GMT: Euro zone construction output for January
10:05 GMT: Italian current account for January
Nothing there to really whet the appetite.
Article by AEP in The Telegraph will have been noted. Entitled “The proposed EU Greek bail-out cannot simply bypass German law.”
Above aforementioned 1.3800, sovereign sell interest tipped up at 1.3825/50.
Gerry do you happen to know if it is the giant panda who protect 1.38 or his little cousin?
Dont know who it is for sure. wud suspect china
Gerry – so, why (at the present moment) are we now tempting fate (by climbing out of a nice ascending triangle on the 15-minute EUR/USD chart) and heading into the maws of the “selling soveriegns” at 1.3825/50, etc., etc.? Someone is waking up in London and deciding to cover their position at 6:50 in the morning?
i think people can get carried away by barrier option protection. usually it doesn’t work and option interest gets blown up. there’s always two sides to the coin. it’s in someone’s (probably plural) interest to get this thing taken out.
Gerry, someone is going after that option protection right now. Let’s see who gets blown up, eh?
now we already know, who won it
Gerry – thanks for your EUR-inclined thoughts. A little birdie on my shoulder is telling me that right now that, in the wake of yesterday’s not-very-exciting FOMC pronouncement plus the threat of a big, bad bear sitting at the gate of EUR/USD 1.3850+, the only way poor little moi is going to make money – in Europe – “today” is to sell your favorite currency via the CAD (and not the USD), prior to the Gray Lady showing up in less than 2-1/2 hours. Now, since the GBP/CAD has been moving back and forth in a nice little channel for almost a week now and is, at present, almost at the top side of said channel (i. e., 1.54822), do you know of any rumor, furry body (or any other thing) that might spoil my fun in the Canadian $un if I choose to short the GBP/CAD about 9:00 GMT “today”?
Not as yet. But I’d certainly be wishing you luck. I’d kinda like the BOE to do a number (undermine) sterling