November 25, 2007
Bucking Euro Trend a Bad Bet
In the week’s Barron’s, Charles Gave calls the Euro “grotesquely overvalued” and says he is looking for it to return to $1.05 to $1.10 in “the next couple of years.” His guess is as good as the next guy’s. It might be wise to wait for the trend to reverse before targeting $1.05 to $1.10.
Cat: | Time: 6:19 pm (utc+8)
November 25th, 2007 at 8:29 pm
Are those the EUR futures charts?
November 25th, 2007 at 8:37 pm
Tom: It’s Euro spot if I remember correctly. (I’ve been drinking heavily this weekend. :-) )
November 26th, 2007 at 1:16 am
Yeah I’ve been riding the spot market on that one. Everyone is talking about EURUSD $1.50 but the trend is feeling awfully tired. Currencies are mainly driven by fundamental reasons so as long as the US is heavily in debt and its economy is weakening I’d stay long the Euro.
November 26th, 2007 at 2:12 am
European economic weakness (and Japan) is already starting to show up. I wager the dollars fall against the Euro is nearly done - but not against the Yuan.
November 26th, 2007 at 2:14 am
roy: yeah there is weakness creeping in but the ECB is still pretty hawkish. Who knows, the trend will be over when the trend is over so in the meantime keep your stops in.