Loading ...Volatility in Major World Currencies
In the last 7 trading days major world currencies seem to have gone full on schizophrenic. The Dollar, the Euro, the Yen, and the Swiss Franc have each leaped outside their Bollinger bands. In fact, Friday’s price bar for each currency opened and closed well beyond the Bollinger band limit. This is unusual.
Can the madness continue? It can. Will it? I don’t know. Often, though not always, a spike well beyond the Bollinger band results in a sudden reversal of trend. A reversal here, if it happens, means a spiking Dollar and a falling Euro – not good for commodities.
USD – Daily
$EURO – Daily
$YEN – Daily
$XFS – Daily
Thanks for bringing this up Fox.
Obviously the surprise FED cut and the promise of more caught the market off guard
The Dollar had to “correct” to reflect the new reality
US Rates are more in like with the rest of the World Now.
BUT…as we are seeing Lebanon defaulted on its debt…There will be the long expected domino effect.
Brighter minds than I have said a sovereign debt implosion strengthens the senior currency as dollars need to be bought to reverse the “sunthetic” short ..as debt is denominated in US Dollars.
I dunno but i think you are on to something…could be a sharp reversal
as far as commodities they have been dropping inspite of a weak dollar…
Interesting and Scary Times