« Loonie Tunes! | Home | Vexed by the Vix! »
Euro Green, But For How Much Longer?
By Mike Conlon | October 13, 2009
The morning’s trading started out with Euro (EUR) strength but it has been pulling back. While still positive against other currencies, it looks like it could go negative as its barely holding on to gains. The initial strength this morning was based on reports that global reserves were moving from US dollars to Euros.
The Euro is known as the anti-dollar, so this makes a bit of sense. However, with US dollar weakness, one would expect the equities markets to be up today, and so far they are negative. Both gold and oil are up marginally, although off of their earlier highs.
So perhaps the US stock market weakness is contributing to yen (JPY) and dollar (USD) paring back losses against the Euro. As earnings season is in full effect for US stocks, keep an eye on the Euro. If stocks stay negative, then the Euro may give back some gains as we expect the correlations to hold up.
Check back later to see how the Euro fares!
Tags: currenc, currencies, dollar, EUR, Euro, gold, Il, jpy, market, Mike Conlon, oil, stock, stocks, trading, USD, Yen
Topics: What To Look At In The Market | No Comments »