Monday 14th April 2008
Surprisingly perhaps the USD has risen overnight after the G7 meeting Friday expressed concern about sharp swings in major currencies, although the market remains sceptical about the chance of any imminent intervention. The post-meeting statement called for calm in currency markets as they warned that sharp currency moves could undermine economic and financial stability.
So probably an implied threat of intervention but certainly nothing definite from the G7. Anyhow the Euro has this morning backed off from its Friday close and like other majors is very near its T/R level and we will have to watch any breaks here although we remain doubtful about the extent and timing of any USD positive moves.
For now though we will continue to trade T/R breaks and be prudent with any profits. High yielders also being hit as Wall Street takes a tumble and moves to a negative Trend.