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Euro Sinks to 1.3500 on Executions, Rebounds Quickly

Posted by Joseph Trevisani on Sep 20, 2013 12:14:00 PM

The quick 30 minute drop in the euro at mid-morning probably had more to do with selling interest before the London close than a delayed reaction to poor European consumer confidence data at 10:00 am. 

The euro sank from a high of 1.3531 at 10:25 am to 1.3498 at 10:53 am with the bulk of the move taking place in 15 minutes from 10:35 are to 10:50 am. The quick turn at the bottom and rapid return to the start line at 1.3520 is typical of released selling pressure after the execution of a large order.

The consumer confidence index in the EMU improved to -14.9 in September from -15.6 the prior month, though it missed the forecast for a bounce to -14.5 according to the European Commission. It was the best confidence reading in over two years.

There was considerable variation within the nations of the EMU. German confidence worsened slightly to -3.4 from -2.3. France improved to -22.0 from -25.8, as did Spain to -21.2 from -22.7, Italy to -16.9 from -18.5, Portugal to -49.9 from -52.1 and Spain, among others, which edged up to -21.2 from -22.7. Confidence fell in Greece to -76.6 from -70.9

Joseph Trevisani

Chief Market Strategist

WorldWideMarkets

Charts: Bloomberg

ScreenHunter 1813 Sep. 20 13.07

ScreenHunter 1814 Sep. 20 13.08

 

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