Euro Retreats
After gapping down, the December euro FX
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unable to muster a comeback and fill Monday morning’s down gap. This is
occurring in a narrow range bar at the contract’s low. The weak opening bodes
poorly for the contract and implies that the ECZ0, from the
Implosion-5 List,
will seek new lows. Higher blue chip stock prices and contract highs in (Dec.)
T-bond futures makes euros relatively less attractive vis-Ã -vis dollars.Â
The European Central Bank has said that it will not intervene to support
prices in instances such as recent Middle East violence, helping clear the way
for more downside. Additionally, intervention in world currency markets would require a coordinated effort among the
world’s leading central banks in order to work. With only two weeks to go before the US
presidential elections, the US is not likely to participate in an intervention.
With little to support it from going lower, the ECZ0 is now breaking down below
its lowest levels of the session and is down a net of .00610 to .83820.
As euro FX futures
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futures
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List) are trading at the top of their daily range in a test of contract
highs.Â
When the dollar rallies, gold, denominated in dollars,
often sinks. A higher dollar makes gold relatively more expensive when priced in
other currencies and weakens demand for the metal. December gold
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trading down, just off contract lows and at the short trigger of a 1-2-3-4
Pullback From Lows
setup, down 1.4 at 271.9.Â
Coffee
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PowerRating) is falling for its fourth straight day on
forecasts of rain in the primary growing regions of Brazil. Lower roastings
(representing lower demand) and a commitment of traders report showing major
funds still have room to get short, are also pressuring the commodity, which is
down 2.55 at 81.60.