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Posts by "bfg"
3 Posts Total by "bfg":
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Posts by Anonymous "bfg":
The week starting the 26th December EURUSD closed at 1.3392, the 55-week MA was 1.3324, so it did close above the 55-week MA. It didn't close above the 55-week MA in the first week but it did the last week of December and it didn't come near it the second last week of December.
The euro only stopped its downtrend when the ECB started its SMP in May, they stopped buying government debt 5 weeks ago and the uptrend came to a halt. These are the SMP figures for the last 6 weeks: 9m 0m 0m 0m 711m 1,073m. They are not very big buying programmes. It depends if the ECB\NCB continue their buying programmes, if not then sovereign default is back on the table. QE is a non event, it is just a swap of assets. So, I'm going for ə.32.
If Greece leaves they will still have their liabilities in foreign denominated external debts i.e. euros. So, they would find it harder to service their debts, solution, all euro countries simultaneously leave the eurozone and reintroduce their national countries, redominate all deposits into their national currencies and the euro will have no backing and will fall relative to national currencies reducing the value of euro denominated debt.
Is it going to happen, I doubt it, there is a struggle going on between the EU trying to wrestle the remaining sovereignty from national countries so that they can roll back the treaty of westphalia. Ultimately the people will decide, something the people in Europe have ignored since the creation of the EU.