Friday September 24, 2010 - 01:29:40 GMT
Share This Story
Forex Hound - www.forexhound.com
Weak Euro Zone PMI Triggers Sell-Off
The EUR USD had an inside day but finished lower.
Technically the Euro fell to the bearish side of a steep uptrending Gann angle
at 1.3444, perhaps signaling the end of this rally or at the least the end to
the bullish pace which has driven this market to its highest level since April
over a short period of time.
Falling to the bear side of an angle doesnâ€™t mean the trend
is changing to down, but indicates the speed at which this market is rallying
may slow down. The distance between the steep angle and the next angle is
fairly large, indicating the Euro has room to break to the downside.
A bearish Euro Zone PMI report triggered Thursdayâ€™s
weakness. Cautious traders read this as a clue that perhaps the European economy
is not going to be immune from the same economic downturn affecting the U.S.
economy. A slow down in economic activity will not be good especially since
many European nations have begun to administer strict austerity measures.
Euro investors were also spooked by a news report which said
finance minister hinted that holders of Anglo Irish Bankâ€™s subordinated debt
may not get all their money back. Traders are remembering what happened in Greece
and are not waiting for events to unfold before paring long positions or
liquidating positions completely.
Although most of the Euroâ€™s gain this week can be attributed
to the Fedâ€™s assessment of the U.S.
economy and its hinting at additional quantitative easing, Euro bulls
definitely received a wake-up call on Thursday, which may cause them to pay
more attention to the Euro Zone economy as well as the lingering sovereign debt
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."