Draghi handout — or lack thereof — this AM to decide euro’s N/T fate

FXE breaks one more crucial technical support Large speculators’ euro net shorts at 26-mo high, but flattish in recent weeks Market reaction to Draghi’s asset-purchase plans will be a tell regarding euro’s near-term direction Still a wait-and-see on the euro … Continued

Draghi surprises; FXE downtrend accelerates, nears support

As discussed last week that non-commercial futures traders might just once again be ahead of the curve in anticipating market reaction to Thursday’s ECB decision, they indeed were.  By Tuesday (last week), they had raised net shorts in euro futures … Continued

Beaten-down euro’s next move — look for clues in futures markets

The expected decline in the euro never came.  Back on August 11, it looked like the currency was ready for a bounce.  Just a bounce, as long-term technicals were only midway through unwinding overbought conditions hence did not call for … Continued

Bulls and bears duel for euro’s near-term direction, former likely to win

posted in: Currency, Derivatives, Technicals | 0

Non-commercials further added to net shorts in euro futures.  They are now net short 129k contracts – a two-year high.  In recent weeks these large speculators have been adding more shorts than cutting longs.  Since early June, they cut longs … Continued

ECB action suggests euro-area debt crisis not over yet

posted in: Credit, Currency, Economy | 0

The euro so far is trading exactly as expected.  ECB President Mario Draghi did not disappoint.  Yesterday, the refi rate (main lending rate) was cut to 0.15 percent from 0.25 percent and the deposit rate to negative 0.1 percent from … Continued