Stocks & Commodities V. 24:4 (98): At The Close by Tony Juste

Stocks & Commodities V. 24:4 (98): At The Close by Tony Juste
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Stocks & Commodities V. 24:4 (98): At The Close by Tony Juste

Expectations Of A Rangebound Market

Expectations have tremendous importance in the decisions of speculators, and that may lead them to ignore other variables of the market. Here’s a recent story of the euro/US dollar.

After the release of the US unemployment report on February 3, 2006, the euro took a hit against the dollar as the pair dipped down below the 1.20 level for the first time in four weeks.

Remember that since a temporary bottom was hit in November 2005, the single currency started a semi-rally on a daily basis that might well be over for now. I call those an “expectations rally.”

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