• 559 days Will The ECB Continue To Hike Rates?
  • 560 days Forbes: Aramco Remains Largest Company In The Middle East
  • 561 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 961 days Could Crypto Overtake Traditional Investment?
  • 966 days Americans Still Quitting Jobs At Record Pace
  • 968 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 971 days Is The Dollar Too Strong?
  • 971 days Big Tech Disappoints Investors on Earnings Calls
  • 972 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 974 days China Is Quietly Trying To Distance Itself From Russia
  • 974 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 978 days Crypto Investors Won Big In 2021
  • 978 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 979 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 981 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 982 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 985 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 986 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 986 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 988 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Silver:Euro

As the euro rips higher today after comments by Jean-Claud Trichet and the newly proposed bailout measures in the struggling euro-zone, it would be wise to watch silver as a proxy for the currency markets. Since silver broke its parabolic formation over a month ago, both markets have been trading with great correlation - with silver leading the way by several sessions. This makes sense in the fact that the silver market is a much shallower and more impressionable market that will trade with greater nuance to the underlying market conditions. Jawboning by the ECB appears to be only momentarily supporting the euro. I would expect the euro to follow suit lower over the next several sessions.

The fact that silver failed to take out the early May dead-cat-bounce highs indicates that the mid May lows will at the very least be tested and likely broken. The violent reversal in silver yesterday confirms that expectation.


Larger Image

 


I just joined Twitter. All my trades and occasional market musings are disclosed in real-time here.

(Positions in UUP & ZSL)

 

Back to homepage

Leave a comment

Leave a comment