Euro Down to 18-Month Low

The escalating concern over euro zone sent the single currency down to 1.2359, the lowest level last seen 18 months ago when US bank giant Lehman Brothers collapsed.

A 750 billion euro bailout plan finally worked out by EU and IMF last weekend only gave a brief break, Greeks’ protest draws market attention back to the debt-troubled euro zone. Still there are arguments arose between euro zone countries. The President of France said that France would act like Germany unless Germany acts more like France. Developed nations are going to keep printing money.

Harsh austerity measures Greece and Spanish agreed to impose in exchange for outside support result in social unrest and may impede economic recovery in the short term, however, they are life saving pills now, but just bitter to swallow. Till the panic fades, the euro is likely to be locked in this downward path.

Big mistake

I greatly mistaken. But without big losses. Pound closed on the stoploss at 2.0927 yesterday. GBP/JPY prompted me to worry again, but will not close the position. I think that will be higher.

UPDATE: GBP/JPY SL 236.87 :) So, have some rest and watch the market.

Pound will be corrected the most

Although the pound grew up despite the bad data of Retail Sales I think it was an inertial move.

Retail Sales have to impact negatively on the Pound and first on the GBP/USD. A very strong level 2.0900 is about to come and they will wait for a good moment to sell. Anyway it looks like the correction of euro currencies is approaching and the Pound will be corrected the most.

As for the Yen it will continue to decline. We’ll be watching what will be going down faster – Pound or Yen. I believe it is the Yen.

This position on Monday prompted me to worry. My SL stands at 23 pips below the minimum. Useful Stress Killer :)

P.S. SELL GBP/JPY 2.0890