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Wednesday, July 31, 2013

Some strange movements in data release and EUR

The CPI for the Eurozone was released at 5:00 PM today in my time zone.

A highly volatile event, it was so curious that the data was released so
late and went from positive to negative and was interchanged between
core YOY and core.

Moreover, it seemed as though the EUR hung in midair and despite having
a double negative, it moved ever so slightly to INCREASE! Then gingerly
moved down and is parked now at its previous levels.

A highly volatile event in a hair trigger market and we get nary a
movement from the EUR/USD over negative EURO data?

If this is a precursor of events to come later, I will try and exit the
market before the fireworks.

Those who opt to stay in the market are well advised to ensure they have
wide margins and to not jump the gun after the first data release (GDP)
because the FOMC promises more volatility and possibility of reversal.

Pretty exciting series of events. I am very curious to see how it plays
out along with the other hidden market movers.

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