Quick Friday comment.....

Friday - or 'amateur day' as we have coined it in this office.... The central banks been busy intervening in the markets. Heard this morning that Swiss National Bank has used 50 bln. CHF up-and-to end of April - imagine the number after last 72 hours of trading. It's gigantic - the only analogy being Bank of England supporting GBP/DEM in September 1992! (Yes, it will end the same way...)

I must say I am totally surprised at the intervention in EUR/USD - it makes NO SENSE! The last thing Europe needs is a stronger EURO. Let me give one free of charge advice: BUY 1.2000 EUR put USD call 2 or 3 month expirty - it is only matter of time before the EUR goes 1.20, 1.15, 1.00,.........

This is from Saxo Trader spot reference: 1,2530.


Otherwise I have rolled my spot into options as the intervention makes the market disconnected.

The target zone medium-term has been 1050-00 ish - now today we need to see if it holds or not, but..... all things considered this coming Monday/Tuesday could be: Black Monday II - I hope not, but it's real chance.

Nice week-end

Winston