There’s a battle occurring between near-term sentiment (risk appetite) and a longer-term (bleaker) outlook for the market and specifically the euro. But the euro refuses to obey the headlines, the doubt, and the optimism trade is still on.
This morning I recorded a series of videos and this was one of them. I think I could call it, “Don’t mess with Merkel” as this is really the continuing saga of Angela Merkel’s efforts to keep the EU together and the euro viable.
No this video isn’t really just about Angela Merkel, in fact it’s hardly about her at all, but I can’t help but think that this is the lasting legacy of 2011. The euro is at a crossroads where data, headlines, and a longer-term pessimistic outlook is being shoved aside for a near-term optimism play. It’s an interesting time for EUR/USD traders and an even more interesting time for equities players in so many ways. I have personally never seen earnings season take such a backseat to anything. But this geo-political event in Europe is – to be fair – historical.
If you like this video, let me know, I’ll keep doing more like it. You can also check out my You Tube channel at http://www.youtube.com/ragheehorner.