Hirose Weekly News| 30 July 2012
<Euro/Dollar>
A great amount of the euro selling position was closed in the last three days of the last week. ECB's Nowotny made a comment that ESM be granted a banking license. "The ECB is ready to do whatever it takes to preserve the euro" said by Draghi, giving certain support to the euro. Germany and France said in a joint statement after a telephone talk that they vow to protect Eurozone. As a result, the euro rose up to 1.2390 against the greenback. Nevertheless, as there is no actual measure after all, the euro is likely to fall if nothing is done in real afterward.
The euro may also be sold if the possibility of Greece to exit Eurozone increase. The market is ready to sell the euro as there are still lot of net short Euro.
Expected Range: 1.21500-1.25500 Sell the euro on rallies
<Euro/Dollar>
A great amount of the euro selling position was closed in the last three days of the last week. ECB's Nowotny made a comment that ESM be granted a banking license. "The ECB is ready to do whatever it takes to preserve the euro" said by Draghi, giving certain support to the euro. Germany and France said in a joint statement after a telephone talk that they vow to protect Eurozone. As a result, the euro rose up to 1.2390 against the greenback. Nevertheless, as there is no actual measure after all, the euro is likely to fall if nothing is done in real afterward.
The euro may also be sold if the possibility of Greece to exit Eurozone increase. The market is ready to sell the euro as there are still lot of net short Euro.
Expected Range: 1.21500-1.25500 Sell the euro on rallies