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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: russwinter who wrote (36650)7/22/2005 4:00:57 PM
From: futures speculator  Read Replies (2) of 110194
 
Can someone give a "rational" explanation why the Majors have plunged -1% against USD today? EUR/USD actually ended the day flat yesterday, after the revaluation news. Not just the Euro (where the excuse could have been weak eco numbers), JPY as CHF and GBP were all down close to -1% earlier.

It can't possibly be that market has discounted the news inits prior move (China reval was the daily theme for 2yr now): Euro is 1% higher from its 52week lows and lower than EOY 2003.

Worse, Yen had just fallen -6% in a few days (imo pressed down by the criminals of BOJ to try to squeeze Yen longs and provide room to limit the jump up against their 100-103 "line in the sand")

GBP rallied yesterday despite the 2nd terrorism attack in a few days and reversed that rally today.

I can understand that some bigger players can force the market's hand and ping-pong the Majors for 50-100pips on occasion.

But even against once-in-a-decade news like a major country revaluation (and domino effects in other Asian countries, like Malaysia reval etc)?

I have seen markets spit in the face of funnymentals, but this is quite odd.

Could it be "hot money" testing the limits of PBoC 0.3% band, and PBoC immediately re-routing this capital into USD markets, thus providing a bid under US markets? (hence the rally in US bonds and stocks)?
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