Like Candy From A Baby
Currency traders are challenging the European Central Bank after the Fed-like
body unilaterally intervened in international currency markets, buying euros in
an effort to support a recent rally in the beleagured single-unit
currency.
Traders are selling the EuroFX
(
ECZ0 |
Quote |
Chart |
News |
PowerRating) futures,
capitalizing on the belief that uncoordinated intervention–intervention
without the participation of the major western central banks–does not work.
Players shorting the ECZ are effectively taking money from the jowls of the ECB. The EC has
closed the gap-up opening and is currently trading at unchanged after a strong
opening to a 20-day high. Great trade at the 20-day high in a Turtle Soup setup (where one fades the 20-day breakout in the same day that the breakout attempt fails rather than on the following day).
Wages rose at an unexpectedly fast clip last month, even
as unemployment held steady, confirming Thursday’s report of higher labor costs
last quarter. The bond market is not responding favorably and is tanking in what
looks like will be its worst week so far this fall. Dec. T-bonds
(
USZ0 |
Quote |
Chart |
News |
PowerRating) are
down 23/32 at 99 7/32 and
10-year notes
(
TYZ0 |
Quote |
Chart |
News |
PowerRating) are off 14/32 at 100 16/32.