This Chart Tells You Why It's So Hard to Bet Against the Euro
Currency's plunge has come to an abrupt end
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The investor consensus is the euro should be weaker, yet a look at the order book of one of Germany's biggest banks shows they aren't putting their money where their mouth is.
Commerzbank AG compiled their in-house order flow data to get a picture of investors' willingness to buy or sell at various euro-dollar exchange rates. The chart shows at $1.10, close to $1.1041 where the market is trading, the densities of buy and sell orders are about equal, suggesting that a downward move to the area is matched with similar demand to buy, leading to a stalemate in the currency. The chart shows flow order earlier Tuesday, and reflects a pattern seen over the past few days, according to the bank.