News Column

ANALYST'S PICK

August 19, 2014

CHRIS VECCHIO



My pick: Short euro-dollar; long dollar-Loonie, sterling-Loonie, euro-Loonie Expertise: Fundamental and technical analysis with risk management Average time frame of trades: A few hours to a few weeks The US dollar has cleared out some of the short-term overbought conditions in a few key technical indicators, but there are several factors in play that could keep a lid on prices. On an event-basis alone, truly significant US economic data doesn't hit the calendar until tomorrow. Instead, there are several competing factors at work keeping euro-dollar pinned lower. Among them: interest rate differentials, especially among peripheral sovereigns; liquidity conditions; one-sided non-commercial/speculative positioning; persistently disappointing economic data; and now the overhang of potential additional easing from the European Central Bank.


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Source: City A.M. (UK)


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