Right from the open Euro went on a run. And a strong one, too. I think European currency was celebrating 10th anniversary and had a birthday rally. It has already been 10 years since Euro was introduced on January 1st 1999. That was for non-cash purposes, with the coins and notes following in 2002. I’m going to leave to economists to sort if EUR achieved its intended purposes ( lower borrowing costs, ease trade and tourism, boost growth, etc,.), but it surely have seen change in fortunes. First few years Euro was steadily loosing ground, but then followed it with a multi-year bull market. From the traders perspective, introduction of Euro was not a welcome development. It eliminated several popular currencies, like Deutsch Mark, French Frank, Spanish Peseta and others. But I think by know everybody is used to new realities and just about forgot the monies Euro replaced.
This birthday rally, like any good bash, seems to have some painful aftereffects. Sharp sell off is under way as of this writing, the Euro hangover. Perhaps it is a start of something bigger.
I had so many trades that there is no way to cover them all. Most of them didn’t quite work out as intended, but they produced gains.
GBP-CAD fell under 1.7800 and I went long at 1.7754. I expected a decent bounce here, and with small stop took the trade. In all honesty I was looking for sharper run up, to about 1.8000 for this leg, but this didn’t happen. I got out at 1.7855 and Pound fell into new depth of misery.
Few days ago in a post Another cartel I talked about long EUR-CAD trade. I placed an order and, well, forgot about it.
Got sloppy and overlooked that this order has not been cancelled. Hate when this happens, because the outcome is usually bad. This time I lucked out and took 255 pips. With the number of trades I take in few different accounts I forget things sometimes.
I took a few trades in JPY pairs, but none hit targets. I settled for small gains of 20-30 pips or about break even. As for EUR-GBP, I’ll cover it more in next post. Euro hangover is getting worse. EUR-USD fell another 70 pips since I started writing.
Mike K.
“Pound fell into new depth of misery”- this is a good one, mate. That’s how it seems, indeed.
Alex, what is going on? If this keeps up you will be giving the old sterling away on street corners.
I’ll bloody burn it first. Have some use for the paper.
Read some stories that people are really unhappy about not accepting Euro. Half the country’s wealth evaporated.
Euro’s good fortunes won’t last forever. See weaknes coming next year. Those who complain now will change their song then. In spite of hellish headlines, things are not that bad.
Sometimes it is hard to tell when you are serious and when not. Euro hangover. Hmm, you are a wicked cookie, Mike.
I’ll have to print this one and post on the well. A wicked cookie? Is it good or bad to be one?
When talking about you it is good, I think.