May 31, 2005

...AND LOWER...:

Daily Forex Commentary (Jack Crooks, 5/31/05, Asia Times)

The euro continues to be hammered lower. Oversold it is, but now we could be seeing what we thought we might be seeing - longer-term players capitulating to the dollar trend higher. The catalyst of course for this move was the French vote on the proposed European constitution and now the likely prospect that the Dutch will follow suit with a "no" vote.

Something about "the best laid plans of mice and men" might be appropriate here.

The next question: how low can it go? Short answer: a lot lower than most people would have believed last Friday. Euro 1.20 is in sight on the weekly chart below:


Can't go lower than we expect it to: we predict they'll be using it to stoke the ovens sooner or later.

Posted by Orrin Judd at May 31, 2005 12:01 AM
Comments

Ovens? That's a bit dark, don'cha think?

Posted by: Mike Morley at May 31, 2005 9:59 AM

As the French and Germans become minorities in their own countries? No.

Posted by: oj at May 31, 2005 10:17 AM
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