Monday, November 26, 2012

Chartology: EUR/USD

1.2969 +0.0088 last. I don't usually try to read the tea leaves on this short a timescale but thought "If we get some EndOfDay weakness in the buck (1.30+) we could see a continuation of last week's equity run."

Via ZeroHedge:
EURUSD Coiling As Rumor (ECB) And Counter-Rumor (IMF) Dominate
...EURUSD is just coiling and coiling here - but of the two rumors, t's EUR40bn write-down makes the most sense in a rational world of trying to help Greece (and therefore must be discounted as 100% not what will happen). We can only imagine that the EU tactic is now to throw each strawman to the rumor-mill to see what reaction is generated by the market - so far - #FAIL.

See also last Monday's "How Much Should We Expect the VIX to Move?".