Posts by "yobadnewz"

Morning everyone, I hope you are all well.
So the Euro is knocking its head once again against the 1.4 ceiling. But will it finally break through?
Portugal downgraded by Moody's, should it matter given the downgrades to Spain last week were largely shaken off by the rising Euro? And it can hardly be a surprise, but how much of Portugal's problems have already been priced in?
I'm not sure on the above, advice welcome, but I do think the markets may have got ahead of themselves in believing Trichet's hawkish talk. The old Machiavel's inflation-bashing bravado was in my opinion a pragmatic attempt to boost the Euro upwards (it has worked), in the anticipation of Euro periphery problems. Add in Japan's recent woes, and a sell off in commodities, and I think the stage is set for an about turn. I'm also recalling Trichet's claim that there could be no successive raising of rates because it would effectively blow up the banking system: so the question has to be, why raise them at all?
Place yer bets...