ECB Says Enough
The European Central Bank said it would step into
international currency markets to stem the fall of the fledgling euro, the first
time the body has intervened to contain the slide of the Europe’s single
currency.
Euro FX
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PowerRating) futures gapped (lapped) open on the news to .86890 but found
their high mark just two ticks above that level and have traded to the downside
throughout the session. The ECZ0, as well as Swiss francs and
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British pounds
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There is a debate as to whether intervention actually
works in international currency arena. Soros was said to have “broken the
Bank of England” in his speculative attack on the pound and lira back in
the early 1990s. And Japan is reported to have spent in excess of $80 billion
trying to prop its currency in the past decade since the bubble popped on the
Japanese economy. Hence, it is interesting that the ECB should both broadcast
their move in advance of actually taking action (traders would not usually
speculate against a currency due to the surprise factor) and issue a glib
statement on the move: “Whether you call it intervention or not,
intervening was not the intention,” said ECB President Wim Duisenberg.
Coffee
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PowerRating) is accelerating to the downside in a Turtle Soup Plus One
Sell setup and is down 2.65 to 82.10.
Natural gas
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PowerRating),
from the Momentum-5
List, is rallying to bluer skies and is making good on an Off The Blocks
setup. Despite a slightly higher-than-forecast storage-injection figure
Wednesday from the APA, governmental data released yesterday showed that storage
levels in June were underestimated and substantially below year-ago levels.