February 1st, 12:11 pm by Barbara Zigah
(eToro Blog) A new month opens with a sell-off in the Euro, which hit hard and fast and continues to show signs of retreat. What caused it specifically isn’t clear, though a predominantly bearish sentiment is not unusual given that the underlying factors which created the Eurozone crisis remain. Recently, the Euro-Dollar was trading lower at 1.3052, and sentiment on OpenBook continues to be predominantly bearish. We spotted trader alqaser2012 who earlier today had a strong run of profitable Euro-Dollar trades. By scalping both sides of the pair; only in the past hour or so, this trader has closed several positions, ranging from 19% to 64% gains and has several open positions already showing gains.
Guru babczyk (along with his 1150 copiers) opened up a short position earlier which is already on the cusp of turning profitable. This trader allocates nearly 95% of his portfolio to the EUR/USD pair which has returned an average gain of 4.3% and is on track to add another successful trade to the several closed shorts of this week.
One of OpenBook’s more prolific traders, guru pyruss earlier opened a long position to add to the several opened yesterday. Meanwhile, this trader continues to close consistently profitable positions as the Euro’s swings inevitably fall within the target profit parameters of one of his many opens; a review of his open trades reveals that one short position is already showing a gain and could meet the target soon if the correction continues.
Numerous economic data points are expected out today, including German PMI, and Eurozone PMI and CPI; analysts are not forecasting a decline in any of the prints, but a failure to meet expectations will clearly weigh more heavily on the Euro-Dollar. Aside from pure economic events, the Greek debt swap situation is still in limbo as the Greek government negotiates with private bondholders for a deal which would also appease the E.U. policymakers who have yet to make a decision on the release of Greece’s next bailout loan. That the ECB has recently sought legal counsel to avoid a similar entanglement given its holdings of Greek sovereign debt is also weighing on the common currency.
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