GDP Pumps Euro
The slowest GDP growth in the US in a year is causing a
temporary reassessment of an historic low in the euro and a rally in the
single-currency futures
(
ECZ0 |
Quote |
Chart |
News |
PowerRating) that has also accelerated through a Turtle
Soup Plus One buy trigger one day after scheduled.
Gross domestic product rose 2.7%, down from 5.6% last
quarter (Q2), and realigns the view that Euroland is far behind the US in
economic output. Currency values are highly influenced by perceptions of
economic activity. Euro FX futures gapped higher and rallied through their opening range in a curt upmove. Intraday, the contract needs to get back through a 5-minute gravestone doji (similar to a tail) candlestick with a more bullish patten setup above .84470 before it retests the session highs at .84620.
The
euro FX
(
ECZ0 |
Quote |
Chart |
News |
PowerRating) is up .01140 to .84230, while
December dollar index futures
(
DXZ0 |
Quote |
Chart |
News |
PowerRating) are down 1.04 to 117.38.
Also reversing off a 20-day low after an 8% decline,
March 2001 sugar
(
SBH1 |
Quote |
Chart |
News |
PowerRating) is rebounding, and trading near the top of
its range up .32 at 9.68, after its biggest down day of the current
contract.
News that should be making cocoa go lower–violence and a
vacuum of political leadership following last weekend’s elections in the largest
producing nation, the Ivory Coast–is not. When a futures (of stock) does not do
what it should, that is generally a very negative sign. Although the contract is
trading at a multi-year low, look for further downside in this futures that just
hit low two days ago.