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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
Trend is bearish so I don't want to play the short terms rallies... If it isn't in the end of today afternoon wee gonna see a sharp reversal on all risky assets
Question of whether euro has a future is a crazy one
Our single currency has a future and is the future (ohhh Im getting goose bumps)
Crisis is not a crisis of the euro but one of sovereign debt
Debt crisis is not limited to euro area, or regions of euro area
This is new phase of global crisis
I think market participants do not consider the fact that economic fundamentals remain strong
Euro area not facing dimension of destruction in wealth as other parts of the world
Economic growth will pick up again after we have overcome current crisis
Potential growth could be similar to pre crisis level
Likely GDP per capita will revert to similar levels as before crisis
Seeing a loss of confidence by markets in ability to run sound fiscal policies
Markets seem too be focusing on debt problems in Europe
Behaviour of rating agencies has been irresponsible (hear hear!!!)
Rating agencies had no idea about Greece support package before making downgrades, was unjustified
We are facing severe problems but not as severe as markets suggest
Guy went on for ever. Enough of that. Anyways comments helping lend euro modicum of support. EUR/USD presently up at 1.2130. Earlier today EcomFin Minister of Spain comments bumped Euro from its days lows when he added by saying "Spain does not plan to ask EU or any request made to EU for loans" if only Merkel could half as much as Spanish Fin minister Euro would be doing allot better. I bet she sucked at maths when she was at school and was even worse at finance later in life. It sounds as though she has no foresight or knowledge yet rely s on some idiots advice that's making her being perceived as crazy grandmother trying to tell you better.
EurCad seems to have made a sound bottom, I remember similar moves in 2008 when Euro was making early highs against it. While EurChf is rising and fast. CadYen seems toppish and probably seems another 3 4 four days left in it before it starts falling lower.
Lee Hardman, a London-based foreign-exchange strategist at the Bank of Tokyo-Mitsubishi UFJ Ltd. But we see no clear drivers in the horizon to sustain a rise in the euro.
Hi Yo,all
any Euro supporters out there ??
Germany will have to hire a whole fleet of Triremes to ferry across the 22.4 billion Euros
in loans they,ve promised Greece over 3 years, unfortunately Angela Merkel has cancelled
the 1.1 billion Euros promised to GM,s Opel operations in Germany.
Beware Greeks Bearing Gifts
Good Luck Out There
Feels like a intervention day today or someone is going to make one of those terrible disastrous statements. A close near to 12280/90 will make things very interesting today. Below we know the rest, at the moment Euro trades at 1.2121. Am expecting volatility to play in today there's not only options expiry but also June futures contract. These days day trading is back so is market swings and volatility.
These days Brazil is facing most difficulties from Euro's declines yield premiums for Brazilian companies, the amount of higher interest they need to pay vs. benchmarks, increased as financial uncertainty rocked Europe. As a result, Brazilian companies have postponed international bond issues for the the sixth straight week. It's the longest dry spell in fourteen months
Companies are unwilling to accept the higher interest rates right now, but if higher premiums persist, it's only a matter of time before they need to come around to the new reality. Credit availability is being sucked out of the Brazilian market, thanks to, as Max Keiser has described, a black hole of debt in Europe.