The markets went in a tizzy in the last couple of months. The Euro was so near( breaching 1.60) and so far. Ossicilations were the rule for stated period. The US lawmakers and the market stats did all they could to make situations normal. Euro broke the 1.55 convincingly for a brief period but retraced back on the back of some bad cues from the US. Expect the currency to rule in the 1.5450 to 1.5700 range with a bias on 1.57. The expanding oil output and the receeding demand should hold it in the range for a while. Though what intrigues me is .....if oil is christinised petro dollar and if its demand increases, then correspondingly, the demand for USD should also increase. Then why should the greenback weaken in such a scenario. I still dont have an answer. Will search for one.
As for the Yen, after a lot of sress test at 105, it has now gone in the region of 107-108 which I had long ago said is a comfortable range (105-108) for Japan. Expect it to test the 105 again before settling in the near 105 area in the next couple of months.
Till my next .......
New direction to the markets?
11 years ago
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