Weak US GDP in Q4? No problem. More QE.
Strong GDP in Q4? No problem. More QE. Or if not, at least no rate hikes until President Romney loses seats in the 2014 mid-term elections… Risk on either way, right?
For the life of me, other than short-covering, I few reasons to buy EUR/USD. Portugal is lurching toward a second bailout, if not an eventual restructuring. Greece is the black hole that cannot be filled, restructuring or not.
Well, there is one reason to buy EUR/USD. LTRO has done its job of easing the funding crisis and cooling the sovereign debt rout. Italy and Spain are less vulnerable today to funding shocks than they were a month ago and France is no longer an issue.
Seems like 1.3100 is an area where bears are willing to reset shorts while toward the old 1.3080 pivot, they are willing to cover cover some shorts…
