Euro, daily
Euro, weekly, 5yr
Summary
A rare..and brief look at the Euro/$ currency pair.
Certainly, the US Dollar has suffered for some weeks - with the Euro rising from 1.28 to 1.33, and the USD now looks set to end a multi-week down cycle within the next few weeks - perhaps a turn as late as mid July?
The EU will effectively be on summer break for the entirety August, but there is plenty of talk about there about the looming German elections, and what effect that might have, not just in the political sphere, but in economic terms, not least the issue of 'will Germany ever consider reverting back to the DM?'
I've long believed that Merkel will get the boot, even since Sarkozy was (to the surprise of many) ousted. If the German elections do see Merkel thrown out, then the US..and world markets will be back to focusing on whether the Euro currency unit has a future.
That will take the focus off the USD, and the overspending US Govt....for a few months at least ;)
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**Bonus chart..
sp'60min'3 - inv. H/S
sp'1670/75 would be great for the bulls next week. Thats only 45/50pts higher, barely 3%, so its not really asking too much. For the doomer bears out there, it could make for the first 'lower high' <1687. Anyway, we'll just have to see how we open Monday. The one thing the bulls have going for them is the huge 5-6bn QE that is due.
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..and that concludes the trading week!
Goodnight from London
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*next main post, late Saturday, on the US weekly index charts.