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Posts by Anonymous "stationdealer":
The 1998 Long-Term Capital Management crisis
The Russian Financial Crisis that preceded the LTCM debacle
The height of the dotcom crash, when WorldCom filed for bankruptcy
The table below summarizes the top ten pre-2008 VIX closing highs. Should it hold, todays VIX spike to 45.21 would put it at #3 all-time outside of the 2008 financial crisis.
Click here for the tablehttp://vixandmore.blogspot.com/
You got that right, brother.
To be honest, Greece is sort of a sideshow at this point. German leadership (or lack there of) of the euro zone is now in question, a major issue for foreign investors. That issue will be more difficult to rectify than fixing the budget hole of a small country.
USD/JPY gapped as low as 88.95 before stabilizing. AUD has been down to 0.8150.
WASHINGTON (MNI) The International Monetary Fund did not call for
private sector wage cuts in Greece, nor were they thought to be
necessary, though the nation will need to improve competitiveness to
spur growth and job creation, IMF External Relations Director Caroline
Atkinson said Thursday.
Atkinson said the IMF did not seek an end to the practice of paying
workers 14 months salary each year.
That is not part of the Greek governments program and we agree
with the government that there is no need to mandate cuts in private
sector wages and salaries, she told reporters at the regular biweekly
briefing.
But she repeated the IMF stance that Greece will need to follow
through on measures to increase competitiveness and strengthen the
private sector, though it may take some time before markets have
confidence in the durability of those steps.
Looking forward, the fundamental aim of the Greek governments
program is to provide an environment for strong growth with investment
in the private sector and productive and sustainable job creation, she
said.
She declined to comment on the recent decline of the euro, or its
impact on Greeces recovery, saying the IMF looks at medium-term
fundamentals not short-term currency movements.
She noted, however, that the funds No. 2, John Lipsky, repeated
Wednesday that relative to medium-term equilibrium there is no problem
with the current euro level.
Calling the Greek program bold and ambitious, Atkinson acknowledged
that it make take time for observers to understand these (measures) and
to believe that theyre credible, and thats not completely surprising.
Noting the European governments have shown they are committed to
doing what it takes, to resolve the crisis, Atkinson said, I think
that whats important for Greece is that they deal with the twin
problems of high debt and competitiveness, and of course competitiveness
is relevant for Greece within the euro area as well as outside it.
** Market News International Washington Bureau: 202-371-2121 **
While USs Reid: Senate To Vote At 2:30 PM To End Reg Reform Debate THEY GOT THEIR 60 VOTE
An other break above 40 likey would open doors to 52 - 55, and i would want to know where S&P will be then!
For those who are amazed today with EURAUD have another look at EURNOK. Cash is rising people!!!
Game play, Buy CAD vs AUD. It's become a bearish world for AUD with soaring risk aversion, falling commodity prices, a pause in the monetary tightening cycle, softer monthly economic indicators and political uncertainties, says BBH. Rising risk aversion and lower commodity prices are not good news for CAD either, but many other bullish forces remain in place at this point, including a favorable growth environment and data that have tended to surprise to the upside. Also, it's only a matter of time before the Bank of Canada enters into a rate normalisation process, BBH adds. With AUD/CAD around 87.69, bounces back towards 0.90 are good selling opportunities, BBH says.
Worry that the euro-zone crisis will stymie the global recovery sent the commodity-backed bloc of currencies sharply lower, with the Australian dollar plummeting more than 3.5% against the greenback and the Canadian dollar dropping more than 2.5%.
The euro fell sharply against the yen, dropping to a 9.5-year low under Y110, after talk of intervention to stem the common currency's rapid decline was increasingly seen as far-fetched. A nearly 3% plunge in U.S. stocks helped speed the euro's decline, with the common currency dipping under $1.23.
The dollar and yen took most advantage of souring investor sentiment, with investors strongly favoring the perceived safe harbors over currencies considered riskier, such as emerging market currencies like the Brazilian real, against which the dollar gained more than 3% by mid-morning trading.
Adding to negative market sentiment was a disappointing reading for U.S. weekly jobless claims and a drop for the first time since March 2009 in the index of leading U.S. economic indicators.
Thursday mid-morning, the euro was at $1.2334 from $1.2391 late Wednesday, according to EBS via CQG. The dollar was at Y89.58 from Y91.54, while the euro was at Y110.47 from Y113.41. The U.K. pound was at $1.4268 from $1.4415. The dollar was at CHF1.1522 from CHF1.1517.
The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 86.609 from 86.276.
"Initially, the market was fearing the ramifications on [the euro] and the currency became the cleanest way to play a negative euro-zone view," Camilla Sutton, currency strategist at Scotia Bank in Toronto said of the escalating debt crisis. "However, as the situation has escalated and austerity measures increase, the fear has shifted to the ramification for global growth," she said.
Accordingly, currencies most tied to global growth, such as the Australian dollar, have come under "tremendous pressure," Sutton said.
Those growth-sensitive currencies also have been hammered by declining commodity prices and concerns that China will put an additional brake on its growing economy, which analysts worry could put the global recovery at risk.
The euro surrendered its day-earlier rally as market chatter that led some investors to believe coordinated central bank intervention could stem the euro's rapid decline was considered increasingly unlikely after comments from a euro-zone official that noted the common currency's speeding decline, but suggested intervention was off the table.
Meanwhile, investors waited to see whether other euro-zone countries would follow Germany's ban on certain types of speculative investments, with the uncertainty weighing on the euro, analysts said.
"The fact that [Germany's ban] has not been followed by other euro-zone members confirms uncoordinated policy responses to the current crisis and can only prove detrimental," said currency strategists at Brown Brothers Harriman. "In fact, throughout this crisis, the euro zone's uncoordinated and sometimes unorganized responses are as much to blame as the actual crisis situation," for the euro's nearly 15% fall since the beginning of the year.
Eurogroup Chairman and Prime Minister of Luxembourg Jean-Claude Juncker voiced concern Thursday about the euro's recent rapid decline, but acknowledged some benefits from the weaker currency and said he sees little need for European policy makers to act right away to defend it.
"I'm really concerned about the rapid (pace) of the fall of the exchange rate," he told reporters at the Japanese Ministry of Finance following a one-on-one meeting with Finance Minister Naoto Kan. But Juncker added that "I don't think that this is a matter [requiring] immediate action."
The comments may add to the view among some market participants that euro-zone authorities will tolerate a weaker euro so long as its declines are not abrupt. A weaker currency helps the region's export-driven economies at a time when austerity measures to cut debt threaten to crimp fragile recoveries.
-By Bradley Davis, Dow Jones Newswires; 212-416-2654; bradley.davis@dowjones.com
(Takashi Nakamichi and Andrew Monahan in Tokyo contributed to this article.)
Boy if this what deflation can do to Japan what effect will it have US, Ahraf we await your comments deeply and with interest..........
"Our decisions on May 9 have confirmed it: We are not engaging in any form of quantitative easing," Trichet said at an event in honor of ECB Vice President Lucas Papademos, who will leave the central bank at the end of May.
The ECB last week, for the first time, started to intervene in the euro zone's sovereign-debt market to restore investor confidence in debt issued by euro-zone governments with weak public finances.
To silence critics, who argue the ECB's debt purchases could potentially fan inflation in the 16 nation euro bloc, Trichet said: "The liquidity provided through [bond purchases] is withdrawn in its entirety through tenders of term deposits"
The ECB and the euro zone's 16 national central banks settled EUR16.3 billion in purchases of bonds in the week ended May 14, the ECB said Tuesday.
Trichet stressed the ECB does not bow to any political pressure when it decides on interest rates and unconventional measures.
"The ECB is fiercely independent," he said, adding "we are inflexibly attached to price stability, our primary mandate."
The ECB's monetary policy strategy that includes the close analysis of money and credit data "implies that interest rate decisions will tend to lean against accumulating financial imbalances and asset price misalignments," Trichet said.
ECB website: www.ecb.int
-By Nina Koeppen and Nathalie Boschat, Dow Jones Newswires; +49 171 569 4340; nina.koeppen@dowjones.com
Alternative scenario: Above 107.5 look for further upside with 111 & 114.5 as targets.
as long as 107.5 is resistance, expect a return to 99.5.
Let me know what you think....
(min.zeng@dowjones.com)
Contact us in New York. Robert Flint, 212-416-2216;
robert.flint@dowjones.com
@ASHRAF (how do you see the effects of these cut on commodity pair? plz comments!)