Money in Motion: Currency Trading
RSS FEED
RECENT POSTS
|
- Good News Ahead for the Euro?
- What Currencies Are Saying About Stocks
- Euro Sinks, China Talks Tough, Dollar Gets a Lift
- How to Trade on the Jobs Report
- How Low Can the Euro Go?
- Euro Steadies, Dollar Holds Firm
- Where the Euro Goes From Here
- Is the Euro Oversold?
- Euro Slides, Yen Lifts, Rupee Keeps Falling
- Busch: How to Trade the Euro on an Outside Reversal
MONEY IN MOTION VIDEO GALLERY
COMMUNITY
LATEST FROM OUR BLOGS
- Apple CEO: Ping Failed, TV Gaming Interesting
- Kroszner: Jobs Report, Euro Unlikely to Spur Easing
- Cramer’s One-on-One with Airgas CEO
- Lightning Round: Advance Auto Parts, Michael Kors, Pilgrim's and More
- Your First Move For Wednesday May 30th
- Digital Generation Bottomed Out: Finerman
- How Gap Stores Turned Things Around
- Cramer Interviews Owens Corning CEO
- Cramer: Europe Is Playing a ‘Game of Chicken’
- Keystone Pipeline Could Begin Construction in Q1 2013
How Low Can the Euro Go?
Text Size 
Currency Blogger, CNBC.com
 |
All of a sudden, the euro [EUR=X
Loading...
()
] has become the incredible falling currency. And Steve Weiss of Short Hills Capital thinks there are more bad times ahead.
Weiss just added to his short euro position today despite the steep fall, he told CNBC's Scott Wapner. The latest German factory orders "were a disaster," Weiss says. "I just think there is nothing good going on." Meanwhile, the U.S. is generating positive economic news, suggesting that interest rates will rise here even as they're declining in Europe. "It's a double whammy."
Willie Williams, director of institutional derivative sales at Societe Generale, is equally negative, but he's more focused on market positioning and other factors.
"Normally when you see a move like this, you see volatility spike," Williams says, but that is not happening with the euro. "The market is not panicked, the market has its position on," and sentiment is running strongly against the single currency. He thinks that if the euro breaks through 1.26 it could fall all the way to 1.19 against the dollar.
Williams is a lot more bullish on the Canadian dollar, especially against the yen,[CADJPY=X
Loading...
()
] since he expects the loonie to benefit from the improving U.S. economic outlook.
"Previously there has been a high correlation between the performance of Canada and the U.S.," he says, so that should benefit the loonie. He also expects the Canadian dollar-yen pair, which decoupled from the S&P 500 in the fourth quarter, to once again start moving more in tandem with the index.
Williams wants to buy the Canadian dollar against the yen at 75.00 with a stop at 73.50 and a target of 79.00.
You can watch the whole discussion on the videotape.
 |
Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.
Talk back: Tell us what you want to hear about - email us at .
- The economy is relatively resilient but there are some decisions that could hurt, says this analyst.
- To escape taxes or political uncertainty, millionaires and billionaires are migrating like never before.
- Some places are kinder than others when it comes to selling homes, as these cities seem to be.
- Here are the 15 publicly traded stocks, by value, that are the biggest holdings of Berkshire Hathaway.
- Some restaurants are taking kid favorites like peanut butter and jelly and turning them into adult fare.
- What we have here are the 10 richest counties in America, according to the average income.
Data is a real-time snapshot *Data is delayed at least 15 minutes
