2010-12-03

Euro speculators signal rebound

The chart ends on November 30, but that day was the closing low for the euro currency ETF, symbol FXE. Speculators reduced short positions during the week and the euro started rebounding on Thursday, a move that accelerated into Friday. The euro was overdue for at least a short-term rebound and we got it.

Precious metals are ignoring the currency markets. While Friday's huge rally (not seen on the chart below, which also ends November 30) coincided with the strengthening euro, the euro also devalued against gold and silver.

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