Market Sinkholes – Trade EUR and GBP for Reprieve Before Resignation

“…vacationers evacuated a central Florida resort building before a sinkhole caused a section of the villa to partially collapse early Monday.” Source : CNBC

Now they say Tiger Woods’ house is sinking.


Caught the EUR and GBP run down quite well yesterday for the hairy ride that it was and trading AUD on the short side this week has been good. Was fortunate I did not buy the Ichimoku on the USDJPY.

The new trick to this week’s trade is to trade last week’s reversals. Nonetheless the 2 best performers on the week are the USDCHF and USDJPY, a sure sign of USD strength into Jackson Hole which is looking more like a non event.

“Bank of America let the cat out the bag on the supposedly top secret Jackson Hole symposium agenda (August 22-24), reported the Wall Street Journal. The topics for discussion are not too surprising, although a panel session on “Monetary Policy Options and Tools”, featuring Bank of Mexico governor Agustin Carstens and the ECB’s research director Frank Smets catches the eye. ·
BoA also revealed that BoJ governor Haruhiko Kuroda, BoE deputy governor Charles Bean and Brazil central bank chief Antonio Tombini will all appear on panel discussions. Another notable feature is the glaring lack of major Fed officials due to speak, which may mean there’s less market focus on the gathering than normal.” Source : Citi FX

Today is a big day. Eurozone GDP starting at 130 pm with France then Germany at 2pm all the way till 5 pm for the final EU number. Meanwhile we will have the BOE minutes. So it will be EUR and GBP day again today.

I imagine we will trade for Reprieve (during numbers) before heading into Resignation (after numbers).

eurusd 60 min candles

The Citi Economic Surprise Index for EUR is back up from its former April- May sinkhole. So sentiments and animal spirits are running high.

cesieur index

CFTC positions show specs long EUR.


So much for all talk, lets put the money where the mouth is and I am going to be out for half the day. Good luck !

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