FOREX TRADERS

[ultimatepick]

20:56 EUR/USD: Does Trichet have the Nerve to Hike A Week Thursday? Boston, February 27. The life of a central banker has been pretty easy of late, especially for members of the ECB. Push up rates 25 bp once a quarter or so and let the market in on the gig well in advance. Suddenly the world changed today with stock markets shifting into reverse and bond markets easing for the central banks. It will be very difficult for Trichet to tighten a week from this Thursday if today"s price action in global markets is sustained. He will be keenly aware that the Bundesbank is still tarred in global lore for causing the 1986 stock market crash. He likely will not want a repeat. Look for some sort of dovish nod in the next few days if market continue on their present path. The default position of hawkish talk looks to be on hold for a minimum.
While EUR/JPY has fallen heavily, EUR/USD could be very vulnerable on a premature halt in the ECB tightening cycle. [e-mail] /rs

Lava, you may want to hold on to that short. I shorted the EUR also and will hold till at least 1.3100.