Optimism about Italy's elections gives way to uncertainty, catching traders flat footed. "We're seeing very dramatic price action because expectations were leaning a different way just 12 hours ago," says Matthew Alexy, director of global forex at TD Securities New York. EUR now trading close to where it was before ECB's Draghi indicated in January that the euro zone may've pulled through the worst of the crisis. One of the most popular trades this year has been long euro/short yen, but those bets unwinding today has caused JPY to strengthen sharply after earlier touching its lowest level since May 2010, Alexy says. Euro at Y121.74 from Y1.2316 late Friday, according to EBS via CQG.
No comments:
Post a Comment