Current EUR/USD Price: 1.4215
Weekly Movement: May 13th=>1.4117, May 20th => 1.4215 Difference + 98 pips .69%
Monthly Movement: May 1st => 1.4802, May 20th => 1.4215 Difference - 587 pips -3.97%
After losing 685 pips, 4.63%, in the first 2 weeks of May, it's shouldn't be a surprise to anyone to have seen a relief rally in the EUR this week.
In what should have been a quiet Friday considering there were hardly any economic numbers on the docket, turned out to be an eventful morning. These are the highlighted events that affected the EURO today:
- President Jens Weidmann of German Bundesbank said that Greek banks will be cut off from funding; ECB no longer accept Greek debt on extension; Further rescue aid shouldn't be assumed
- Norway freezes $42M in payments to Greece
- Fitch cuts Greek rating deeper into junk territory and warning of even further downgrades; Warned any extension of debt maturities - soft restructuring or re-profiling - to be a default event
Next week the EURO seems vulnerable considering the events listed above but I would wait before beginning to short again. Commodities are on the rise again. Gold is up 20pts today and oil back above 100. S&P seems stuck between 1337 and 1344. But I'll be ready next week to shoot off some shorts in EUR/USD on any move back towards 1.4300-1.44.
The chart above shows the EUR/USD movement for the month of May. The bounce from this month low of 1.4050 occurred this week.