Euro Thrashed
Weaker-than-expected industrial production and corporate
earnings numbers from Europe, coupled with an unexpected up-tick in continental
inflation, is putting currency traders on the defensive and sending the
single-currency
euro FX futures
(
ECH1 |
Quote |
Chart |
News |
PowerRating) down to a 20-day low.
This is the third straight day the futures have fallen
out of their Pullback From Low setup. The touchdown to a new 20-day low was met
with buying in a swing bounce that Larry Connors identifies as a Turtle Soup, a
setup that occurs on the same day rather than on the following day as in the setup we track for you daily on the site.
Yesterday’s productivity figures were a sign of
underlying US economic strength, as the euro sold off on speculation that the dollar
may have been too heavily discounted.
Of course, the euro’s sister, the Swiss franc
(
SFH1 |
Quote |
Chart |
News |
PowerRating),
is also off sharply to 20-day lows.
As suggested in yesterday’s
Mid-Day Futures Alert and
Futures Market Recap, Japan’s revised Q3 GDP figures actually contracted rather
than grew slightly. The deteriorating fundamentals of the Japanese yen
(
JYH1 |
Quote |
Chart |
News |
PowerRating)–the
economy actually lapsed into recession–are taking traders off the buy-side and
the futures are down to a new five-day low.
Energies pumped up yesterday after Israel voted in a
hawkish Prime Minister who will raise tensions and the potential for violence in
the Middle East. March crude oil
(
CLH1 |
Quote |
Chart |
News |
PowerRating),
heating oil
(
HOH1 |
Quote |
Chart |
News |
PowerRating) and unleaded gasoline
(
HUH1 |
Quote |
Chart |
News |
PowerRating) all
rallied strongly to ascend to the Momentum-5
List and are continuing higher today.
Coffee
(
KCH1 |
Quote |
Chart |
News |
PowerRating) is trading right at its Turtle Soup Plus One Buy
trigger.