EUR

i believe if there no any sign of attention by policy makers in eurozone and ecb during the weekend be prepared for a free fall in euro in case of any euro correction its opportunity to short again

@ catnip I am long eur/jpy and eur/usd as well.....@ horrible levels! where do you see euro recovery capped at? if greece is able to meet its bond obligations on Thursday, do you see the euro recovering? also, taking into consideration the USDX's 6 month streak, do you see it rising further?

Just read a post over at zero hedge...the net short exposure on eurusd is at an all time high, nearly everyone is betting against the euro...any reversal would cause one hell of a squeeze most likely to 1.3 and beyond...Am going long eur calls for the sept expiry anway

My theory since 2008:

1- risk collapses as liquidity contracts and corportate insolvencies are fears

2 - markets collapse

3- central banks come in and rescue

4 - investors starts to regain confidence and pile in money

5 - risk becomes overbought over a short period

6 - the dirty work of the central bank starts to show

7 - risk collapses

8 - who will sort out the debts and fiat issues now?

9 - markets and risk decline over a longer period as investors find little reason to take much risk as there APPEARS to be no remedy for the disease in the system

10 - result is above average inflation and wage stagnation and higher taxes

11 - economies barely improve and unemployment remains high for several more years

Expect DOW to be retesting March 2008 lows before 2012.