My broker just had this news report hitting the wires:
"More stops have seen [USD/YEN] up another 30 ticks to trade around 118.50 with French buyers of the headline seen alongside antipodean buyers of Nzd/Yen. One last run on stops could follow with more triggers said above the Asian park at 118.69, but without a move in the very short term, current levels will likely prove attractive to Asia, with Japanese big Yen buyers earlier. We are also entering into the period of big Euroland bond redemptions with one of the largest maturing next week as over Eur 30bln in French bonds expire, this to coincide with spot value from Monday."
How would this affect the EUR/USD? What do you think?
I was trying to analyze this from the economical point of view, but came to the conclusion that there are many conflicting factors/interests in this.
For one instance, if bonds expire, who would benefit more from a HIGHER Euro? The investor or the government that issued the bonds? How would Banks/Financial Institutions doe they're "dirty tricks" if they KNOW that these bonds will expire?
This takes me to the next point. Are any of you using COT data to trade Forex? I have read a couple of things lately about the correlation of COT data and Forex. Here an interesting wrap-up from Investopedia:
"Using COT Report To Forecast FX Movements" http://www.investopedia.com/articles.../COTreport.asp
Thanks for your insights!
Peter.
"More stops have seen [USD/YEN] up another 30 ticks to trade around 118.50 with French buyers of the headline seen alongside antipodean buyers of Nzd/Yen. One last run on stops could follow with more triggers said above the Asian park at 118.69, but without a move in the very short term, current levels will likely prove attractive to Asia, with Japanese big Yen buyers earlier. We are also entering into the period of big Euroland bond redemptions with one of the largest maturing next week as over Eur 30bln in French bonds expire, this to coincide with spot value from Monday."
How would this affect the EUR/USD? What do you think?
I was trying to analyze this from the economical point of view, but came to the conclusion that there are many conflicting factors/interests in this.
For one instance, if bonds expire, who would benefit more from a HIGHER Euro? The investor or the government that issued the bonds? How would Banks/Financial Institutions doe they're "dirty tricks" if they KNOW that these bonds will expire?
This takes me to the next point. Are any of you using COT data to trade Forex? I have read a couple of things lately about the correlation of COT data and Forex. Here an interesting wrap-up from Investopedia:
"Using COT Report To Forecast FX Movements" http://www.investopedia.com/articles.../COTreport.asp
Thanks for your insights!
Peter.