I might add to the title the following words, " By Design".
ECB President Mario Draghi, apparently was feeling the heat from Eurozone manufacturing interests, exporters and some politicians, all of whom have been complaining and moaning about the relative strength of the Euro.
It was apparent that his remarks yesterday were designed to try to do something about that and judging from subsequent market price action, it worked!
The Euro fell from up near 1.40 ( a key level in my view that they will not tolerate ) all the way to down below 1.375. That is a drop of nearly 2% in the currency in two days' time. Not bad for a few minutes of speaking!
I honestly could not handle power like that. I would run around my yard commanding it to mow itself and my flowerbeds to weed themselves if I had that kind of control over stuff! I would also command the tires of the cars that keep speeding through my neighborhood to go flat.
Seriously, look at the chart and the damage that Draghi was able to inflict on the Euro. He flipped the ADX indicator into a bearish mode and while not yet able to get the currency to trend lower, he managed to turn the ADX line higher. That will need to be watched because, IF THE EURO CANNOT HOLD CHART SUPPORT, and this is a big if, we might have just seen the high in this currency for some time. Again, I am not sure but am certainly watching this closely mainly because of the heavy weighting of the Euro in the USDX index.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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