Monday, December 11, 2006

Quiet Start

There has been a very quiet start to this mornings activity. The Euro is basically unchanged from Fridays close. Some comments this morning by Quaden:

ECB thinks excessive volatility in FX markets is not desirable

No need for countries to panic on FX or interest rates

Euro relatively high and the dollar relatively weak but not in uncharted waters.

These comments do not do to much for my thinking but I will continue with a slightly negative approach to the currency pair near term (with very tight stops). I think that the market is still very long Euros (or more accurately very short dollars), so I think the market is susceptible to a selloff. All this being said I am certainly not very excited about the markets at this time. I will be cautious trading only small positions.



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