The euro follows my tramlines in the charts

The media is full of the news that the European Central Bank is under pressure to print. But as John C Burford explains, the charts were well ahead of the game.

In recent days, the euro has been the subject of concerted selling. The reason for this is that the market believes the European Central Bank is under pressure to lower its policy interest rate from 0.5% to 0.25%, or even lower.

This sentiment is the result of the eurozone's rapidly declining CPI (consumer price index), which is perilously close to running through the zero line and into outright deflation.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.