Thread: Closed: Discuss EUR/USD News with a DailyFX Analyst

USD/JPY has jumped in the last few minutes on rumors that the BOJ is “checking rates”. That means the BOJ trading desk is calling around to banks asking what USD/JPY is doing which is meant to put traders on guard for intervention.

We’re at 76.75 from 76.58 as the data was released at 12:30 GMT.

USDX - SHOULD START JUMPING AND EU DROPPIN...

well well, 138 or this could be the sell opportunity.

That was not good.....news outbreak just occured hence the spike north
just when all posis were in profit nicely 5 pips away from target... now selling the spike

Originally Posted by cw1

That was not good.....news outbreak just occured hence the spike north
just when all posis were in profit nicely 5 pips away from target... now selling the spike

well this could be a rerun of wave 3 now...

still a possibility imo. This announcement could easily lead to more risk on given the steep declines in Europe this month so far, and an easing of EONIA (as per Mary's comments)
Attachment 97345

An R3 day Wow

13936 looks like a completed 5 on the 1m

Long filled on breakout of the hourly channel... let's see how far this goes... Good luck

Originally Posted by MysticMegatron

13936 looks like a completed 5 on the 1m

I think so - it looks like diagonal ... ups everywhere I see diagonals ...

Could you guys, please, explain, what does it mean?

It is obvious that more than few banks in Europe are in trouble.
The worse problem is ECB may not have the liquidity to aid these banks requiring the aid of
federal reserve...
The price action reveals Markets are not convinced....
Actually markets are convinced that the financial troubles in europe is not within the banking system alone it is actually affecting the entire political and financial institutions including ECB.

It will wise to short Euro at this time against the herd!

Originally Posted by banison

Could you guys, please, explain, what does it mean?

The Global Liquidity Bailout Arrives: World Central Banks Announce Global Dollar Shortfall Funding Resolution | ZeroHedge

It is the TARP for EUROPE.....
There will be credit rating down grades for sure....
Investors should short every stocks that violates normal market dynamics!

The euro jumped across the board at 13:00 GMT , rising 1 percent on the day against the dollar after the European Central Bank announced it would introduce US dollar based funding for European banks.

The ECB, alongside other major central banks will basically reintroduce three-month dollar liquidity tenders in the fourth quarter. It will hold three separate operations between October and December, adding it would help see banks through the year-end period.

“The European Central Bank has decided, in coordination with the (U.S.) Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year,” the ECB said in a statement.

The ECB’s operations will be conducted on a fixed rate, full allotment basis, and will be held on October 12, November 9 and December 7.

Recently, euro zone banks have experienced renewed strains in finding dollar funding as distrust between banks has grown due to the sovereign debt crisis.

EURUSD jumped from 1.3773 to 1.3935 within 30 minutes of the announcement.

With this decision.....they just pushed the buttom for the beginning of another downturn in the global equity market!