Busch: Weidmann Doesn't Disappoint = Euro Strength
By: 
Friday on CNBC's "Money in Motion" and Tuesday on CNBC's "Fast Money Halftime," I talked/warned about Jens Weidmann, an ECB member and the Bundesbank's head, speaking today. My belief was that he would say something positive about the euro as he is an inflation hawk and a believer in a strong currency.
Here's what he said in the German weekly newspaper Die Zeit:
- Says in the short term, inflation "is no reason for concern due to the weak economy".
- Says ''decisive test'' on inflation will come ''once the economy recovers and once time has come'' for a less accommodative monetary policy
- Says ''we are living in a time, in which the interaction with central banks is changing"
- Says Japanese central bank "under strong pressure" from the government
For those of you following my trades, here was the Money in Motion EUR/USD trade structure:
Buy EURUSD
- Entry 1.3425
- S/L 1.3375
- T/P 1.3575
And yesterday's momentum EUR/USD trade:
Buy EURUSD
- Entry 1.3510
- S/L 1.3475
- T/P 1.3610
For today, the profit level was hit on the 1.3425 trade and that should take you out for now. For the 1.3510 trade, I'd cut half the position here at 1.3575, move stop to 1.3510 and leave profit at 1.3610. We've got an event risk later today with the FOMC and we should have volatility surrounding the announcement. For the EURUSD, the question remains when will the European politicians begin whining about the currency and putting pressure on the ECB to stop talking the currency higher? Until that happens, the currency markets will gladly force the EURUSD higher and reap the rewards.
Andrew Busch is editor and publisher of "The Busch Update." andrewbusch.com, Twitter: @abusch and is a CNBC "Money in Motion" contributor.
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