Mon, 16 May 2011 00:16:00 +0200

Forex Flash - Rally in high-yielding currencies ending - FXConcepts

FXstreet.com (Barcelona) - "John Taylor, founder of the world’s largest currency-hedge fund, said the rally in higher-yielding assets is coming to an end with Europe’s sovereign debt crisis resurfacing, growth sluggish and banking systems unsteady" quoted Bloomberg on Friday.

“This is the end of the nice slow moving risk rally that has lulled us pleasantly to sleep since the first half of 2009,” Taylor, chairman of New York-based FX Concepts LLC, said in the interview. “This warning is worthy of a brass band and bright lights as the other side of this low volatility rally will most likely be a scary descent that will have a very negative impact on markets. Our statistical models say we are about at the end of the road for risk.”

Higher-risk assets, such as equities, the euro and emerging market currencies, have either peaked or will do so by end of July, according to Taylor, who manages about $8.5 billion and uses statistical models to help predict future movements in assets. G

Technical Analysis (2011-05-15 22:00 GMT)
EUR/USD 1.4074/1.4075 - O: 1.4388 H: 1.4397 L: 1.4385 C: 1.4394
Trend	R3: 1.4151
	R2: 1.4116
	R1: 1.4081
	S1: 1.4005
	S2: 1.4040
	S3: 1.4075