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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:

EUR

Discuss EUR in this thread
 
catnip
Frankfurt, Germany
Posted Anonymously
14 years ago
Oct 6, 2010 18:47
what is huge sums for traders is a fart for PBOC. No CB goes for yield imo.
redstone
bristol, UK
Posted Anonymously
14 years ago
Oct 6, 2010 18:37
most traders are looking for yield hence huge sums going into the real , aussie, turkish lira and others . Chinese arnt bothered with yield as they are loaded hence buying of euro. usd heading for 77 i think. GPb just coasts along on political waffle on austerity. So take your choice !
catnip
Frankfurt, Germany
Posted Anonymously
14 years ago
Oct 6, 2010 18:27
subway90
as I use a fx trading system based on value at risk numbers the objective is to find the var as a number between 0 and 1. So the question is how risky is it to hold USD instead of EUR, to hold GBP instead of JPY etc. Actually I don't even care about relative prices for ex. how many USD buy 1 EUR. As for now the risk to hold USD instead EUR is significantly higher.
So it could well be EURUSD crosses 140 soon and then even reach 150.
There are however some values which do not support this. Why should Eurobond fall in the same manner as 2 y UST? Somewhat slower yes but the direction is the same.
When I figure this out EURUSD could as well drop sharply from 140 and could fall to 133.
Both is possible by ye with same probability. It depends also on how long ECB can sustain
1% interest when according to Dudley FED is headed for -0.5% effective rate?
So I am a bit baffled to see EONIA falling 23% in one day.
jamshed
Pakistan
Posts: 57
14 years ago
Oct 6, 2010 18:23
Guys......

currencies move in macro directions based on fundamentals
- however, the central banks keep intervening resulting in distortions which last for months.

Euro would have depreciated
- had China not intervened, and then Japan intervened and now the FED is jumping gun

current set of interventions are uncoordinated, so you have seen the Euro peaking, then Swiss and Dollar and then Yen in multi year highs. The net result is devaluation and loss of value for the currencies.

I will see Euro around 1.50
but the main question is what to buy - Gold / Silver / Oil / Sugar / Wheat / Aussie / Swisse or canadian dollar or to put it in Chinease stocks

thats the main question - when you go out the major currencies, what do u do




redstone
bristol, UK
Posted Anonymously
14 years ago
Oct 6, 2010 18:17
china wont let the euro drop. they need some where to send their exports
subway90
Korea Sout
Posted Anonymously
14 years ago
Oct 6, 2010 17:58
there are too many traders trying to look for answers and where certain currency is headed...
they are very good researchers... can find almost every articles and analysis of so many different analysts.....
can't understand why they waste so much time on such things when all the answers are right there in front of them all the time.... :)

La Puzzy Digitalle
Kukuaka , Bangladesh
Posted Anonymously
14 years ago
Oct 6, 2010 17:53
jim says ... they r not very smart people its why they r in washington
subway90
Korea Sout
Posted Anonymously
14 years ago
Oct 6, 2010 17:52
Catnip...

What would be the fundamental reason for current upmove for Euro?...
you probably kept thinking to sell Euro at lower levels because of your fundamental reasons and it should be heading to parity(by end of the year? :)) as you mentioned...

so.. next question... where is Euro headed and when would be the right time to sell Euro?...
explanation in layman's words would be greatly appreciated... :)
La Puzzy Digitalle
Kukuaka , Bangladesh
Posted Anonymously
14 years ago
Oct 6, 2010 17:51
http://finance.yahoo.com/tech-ticker/markets-soaring-%22but-the-world-is-worse-off%22-jimmy-rogers-says-535479.html?tickers=%5EDJI,SLV,GLD,UUP,TLT,DBA,MOO&sec=topStories&pos=9&asset=&ccode=

jim rogers wideo
Xaron
Munich, Germany
Posts: 528
14 years ago
Oct 6, 2010 17:35
Yep. I'm curious what Trichet will do tomorrow. He might sound as dovish as he can. *g*