seems like the oil cut threats are gripping the forex market just at the moment.
short eur/usd , now from 1.3336, smaller number of lots just in case it continues higher for no good reason. Or the Senate decides they do want to pass an auto bail out. Already down a bit while I was typing....
20:13 USD/CAD: Oil Pull Back Squeezes Nascent Shorts New York, December 12th. With oil slipping back from $49.12 to $47.35 and US equities lose their earlier allure, now off 2% (Dow), USD/CAD has rallied back hard, last at 1.2350/55. Traders note that on the downslide a large pension fund was a USD seller, and was accompanied by several hedge funds that were scooping up AUD and CAD following the past two days gold rally. Interestingly gold failed to hold on to earlier gains, and has slipped $10 to $820.60 during the US session. The bounce has unwound oversold USD/CAD hourly technicals, the Bollinger bands had been heavily oversold. The market remains bearish and is looking for a better level to short it. Peter.Wadkins@ThomsonReuters.com /rd
