Euro Surging On No News Has Traders Interested

Since this morning, the Euro has been surging, but there is no news out there that would explain the surge. Look at this chart of the Euro, which is seeing continuous green bars. As such, the equity markets are at session highs, with the NASDAQ up 12 points and the Dow up 50 or so points. The huge gap ups would suggest that some news is coming out of Europe, perhaps positive developments on Greece and the situation. Chinese Premier Wen Jiabao is in Europe this week, and there are rumors that China is once gain going to play the world's banker, and buy up European debt, particularly Greek debt. In an interview with British Broadcasting Corp. yesterday and comments obtained by Bloomberg, Wen said “China has actually increased the purchase of government bonds of some European countries, and we haven't cut back on our euro holdings.” These acts “show our confidence in the economies of Europe and the euro-zone.” I would not be surprised to hear that China is going to announce a massive purchase of European debt, and perhaps Greek debt. Ways To Play It Traders can play this by going long CurrencyShares Euro Trust FXE, or perhaps going long some of the banks that are most expose to Greek debt, such as Deutsche Bank DB or BNP Paribas. We may hear something out of Europe after the end of the trading session in Europe. It should be a very interesting few hours to say the least. The Euro/dollar chart is telling us something. If traders want to capitalize and profit on it, open up your ears and listen.