Friday, September 16, 2005
Here is an updated hourly chart of pit and electronic trading in the December eurocurrency futures. I think we have a "dog that didn't bark" situation here. The bond and note futures tanked today but the eurocurrency held steady as a rock. Normally when US interest rates go up one expects the eurocurrency to break in sympathy. The fact that it held steady is a bullish indication.
This is evidence that the eurocurrency is now headed back to 126.50. My guess is that such a move would accompany a rally in the bonds and notes.