US Peso On a Roll Now

[adios]

The US greenback has had a great rally the past couple of days. ECB making noices about Euro being too high sparked the rally it seems. Bear market rally or an inflection point? What ever I say just go the other way /images/graemlins/smile.gif. I'm thinking that we probably have seen the high in the Euro or close to it for quite awhile.

[GeorgeF]

Unlike the BOJ, The ECB does not seem to have put any of their own money into buying US$. In the past people who have defied central banks have gotten quite rich (Soros.) I wonder if the US$, yen and euro are just too big for someone like Soros to call the bluff. I wonder if unlike the japaneese the europeans will not tolerate billions being spent proping up the US$.

There may also be an Iraq angle. One way to 'aid' the US without actually supporting the US is to buy US debt.

[Wildbill]

Simple short covering I would guess. Rumblings from the ECB and the high profits these hedge fund guys have made on the recent run make it pretty clear that some short covering was certain to happen. I think the whispers got loud as it approached 1.30 and for the short-term a little correction is in order. I still think though it will bust through that 1.30 within a month or two and keep going to at least 1.40.