Today is Sun, October 22, 2017 4:51:20 GMT
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Currencies EUR USD News Wild Ride For The Euro (EUR)!

This morning has been a wild ride for the Euro as evidenced by the volatility in the EUR/USD pair, which has traveled over 150 pips in the early morning session.  This has helped reverse risk themes as the Euro has sold-off after the initial reaction to the ECB 3-year lending program to banks.

Yesterday’s rally higher on better than expected economic data followed through to the early morning session and peaked after it was announced that the program exceeded expectations with more banks seeking loans and pushing the overall value to $643 billion.

While the initial reaction was positive, it quickly reversed and turned to negative.  See the forex maket outlook above for a complete discussion of this program and its impact on the markets but realize that today’s knee-jerk reaction may not be indicative of the long-term success.

Consider this a combination of an EU tarp and Quantitative Easing (QE) as not only does it help shore up the banks, but also increases Euro liquidity.

So I’m looking to buy EUR/USD near 1.3025, with a stop just below 1.30 for a possible return to 1.32.