Posts by "catnip"

EURUSD can very well top 14250 but not for "technicals" . To consider is EUR is far more fundamentally in trouble than USD.

Warning: the covert lending of ECB and Bundesbank renders Eonia and Euribor pointless.

Some bank analysts warn - Ashraf seems to confirm- that ECB hike is the final nail on Euro's coffin.
ECB's first CEO Wim Duisenberg was pushed into office by German Chancellor Kohl. He wasn't actually pro Euro, rather pro Germany. He kept that stance when the goverment became socialist
and bowed to minister Lafontaine who wanted a rate cut to push up the ailing german industry.
From that move on, the real value of Eur started to tumble and it still does. No difference to USD. The only difference that matters is that Eurozone started to build the largest and most expensive administration as credit was cheap.

It is silly and unprofessional to take politics out of consideration of EUR scenarios.
There is a war forming at the doors to europe and the Eur bulls treat it like a soccer match.
Ezone economy is by far more fragile than US thus a trader must expect any time a sudden fall of Eur if Lybia, Algeria , and eventually Middle east situations escalate. Btw did anyone notice the phrase war on terror has completely disappeared from US rhetorics? Now its war for democracy...
take care. Dr.Ben clever man.
Another factor that should make traders more suspicious. Overnight interbank interest.
Quite openly the FED provided liquidity directly to banks as LIBOR etc spiked.
Not so ECB and Bundesbank. They did and keep on doing the same but covertly.
Thus Euribor and Eonia aren't anymore reliable instruments for state of Ezone banks.
This is imo a typical house of cards construct.

Point is hourly earnings. Despite NFP indicates some recovery , earnings do not support the customer driven US economy. Inflation in US is not a topic but remains top topic in Ezone.
Bank analysts concur ECB cannot hike.