The EURO has really weakened against the $ recently. It'll be interesting to see how the positioning goes prior to the Durable's and New Home Sales reports.
Both reports are predicted to show big improvements from their previous readings, i.e. be $+. What you may be seeing here is what happened with NZD prior to the Trade Bal report-traders buying the rumor. It's already sitting at about 2685 now, so a lot of the rumor has already been bought. If it goes into the mid to low 26's later today or in the Asian and London sessions...it will only serve to confirm this.
The best scenarios to make some pips off these reports are as follows:
1. If the EUR returns to the low to mid 27's (or even higher) and the reports do come out off consensus and even more $+, they'll be more room for a nice down spike in the EUR.
2. If the rumor has been bought prior to the trade, (Eur remaining in the upper to mid 26's) and the reports come out off consensus and $-. a nice big gain in the EUR may be seen at that point.
Both reports are predicted to show big improvements from their previous readings, i.e. be $+. What you may be seeing here is what happened with NZD prior to the Trade Bal report-traders buying the rumor. It's already sitting at about 2685 now, so a lot of the rumor has already been bought. If it goes into the mid to low 26's later today or in the Asian and London sessions...it will only serve to confirm this.
The best scenarios to make some pips off these reports are as follows:
1. If the EUR returns to the low to mid 27's (or even higher) and the reports do come out off consensus and even more $+, they'll be more room for a nice down spike in the EUR.
2. If the rumor has been bought prior to the trade, (Eur remaining in the upper to mid 26's) and the reports come out off consensus and $-. a nice big gain in the EUR may be seen at that point.