Is there a floor for Europeans?

October 22th. European majors collapsed in Asian session, with Euro reaching the 1.27 and GBP the 1.62 levels,making again dollar and Japanese Yen the overall winners. As commented after the last G7 meeting, the optimism triggered is coming to an end, as economic outlook worsen, and certain messures are not taken. And when authorities state that their countries are entering into recession, like Bank of England governor Mervyn King did yesterday, well, confidence of investors fell like a rock and run away to saferassets. The unwind of carry trades is sending Japanese yen up strongly against most rivals, and with other majors also under pressure against greenback, pairs like Eur/Jpy and Gbp/Jpy had reached fresh several years high, ignoring signs of over sold. In fact, many currencies have the same symptom although like mentioned yesterday, there are no technical signs of corrections, meaning the Panic stage of Dow theory is […]

Original post by Valeria Bednarik

This entry was posted on Wednesday, October 22nd, 2008 at 4:38 am and is filed under Starting the day. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.