Or was that just a red herring?
Earlier I posted on comments by ECB governing council member and Austrian CB gov Ewald Nowotny that were blamed for the sharp fall in the euro across the board
But the headlines from the wires were either a little misleading or a indication of just how fragile these markets are right now
Actually it's a bit of both. The additional and structural measures he referred to were more of the reform variety as I mentioned in in my original post, and as such that's not anything new that we've heard from other ECB talking heads lately.
Indeed, much of the recent rhetoric has specifically referred to extending QE or extending if necessary so in that context Nowotny's comments, aimed at reforms, are hardly the green light for further easing by the ECB next week or anytime soon.
That's not say that it's not on the agenda of course, and that in itself is keeping the euro undermined at the moment. Add to that a few stop-losses being triggered to on the way down this morning.
Rallies from this morning's lows are definitely being sold into but I would expect demand in the dips and consider this morning's move an over-reaction
Good opportunity though nonetheless and I had banged on about the large offers, probably barrier option related, at 1.1500 so there were definitely clues from the off.
EURUSD currently 1.1442 EURGBP 0.7390 EURJPY 135.50
Were Nowotny's comments that scary this morning ?
