New ETF Book by Larry Connors - Click here to read more
The EUR/USD made a strong turnaround in the European session today after Euro–Zone Industrial Production results printed much better than market expectations. The data reported a 2.8% rise on a year over year basis, as the lower currency clearly helped European manufacturers build momentum in August.
Earlier in the session the pair dropped through the 1.9000 figure coming within a whisker of probing the yearly lows. The main cause of the downdraft was a story in Financial Times which stated that Angela Merkel may have backed away from her pledge to lower German income tax rates. The news confirmed the market’s worst suspicions that the grand coalition government will be unable to enact meaningful reforms to jump start the German economy.
The collapse in the EUR/USD was also exacerbated by aggressive stop hunting by the dealers forcing many 1.1900 no touch options expired worthless. The price action however made a very sharp U-turn after the economic data was released, as the Industrial Production reports suggested that the Euro-Zone economy may be on a path to growth regardless of which politician is at the helm.
Meanwhile in Japan the yen remained range bound near two year highs as fears over hurricane Wilma made for cautious Asian session trading. The currency market is concerned about any additional damage to the oil drilling platforms in the Gulf Of Mexico after Wilma suddenly mushroomed into a category 5 storm. Although, Wilma is not expected to move into the Gulf heading to the Florida peninsula instead, its final destination will be unclear until Friday. Japan imports 99.5% of it crude demand and is therefore vulnerable to any supply disruptions.
Boris
Boris Schlossberg serves as Senior Currency Strategist with Forex Capital Markets in New York, the largest retail forex market maker in the world. He is a monthly contributor to SFO Magazine with articles focused on understanding proper risk management, trader psychology and true market structure. He is also a featured expert at www.fxstreet.com and a frequent commentator for the Marketwatch From Dow Jones Currency and Bond Report sections.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
