EUR

EONIA / SHIBOR/ LIBOR - all irrelevant
What is relevant is that USA is bankrupt and the only option is to devalue the dollar. Gold is headed to $2000 and above.

EUR Retail Sales m/m -0.6% previous 0.6%
despite of inflation (!)
bad bad for EUR rate hike is a must but cannot be done
any rasie of EUR above 1,385 now very unlikely USDx will strengthen if Trichet doesn't lay out
clear policy in clear words

For all perma dollar bulls, a nice reading:

Feb 2, 2011
Richard Russell


February 1, 2011 -- Is the US's financial position hopeless?

I've studied the US finances backwards and forwards, and as I see it the US's financial position most definitely is hopeless.

The actual posted national debt of the US is $14.1 trillion.

However, the US reports its finances on a cash basis while
omitting its unfunded obligations in such items as Social
Security, Medicare and Medicaid and various other entitlements.
If the entitlements are included, the total national debt
including unfunded obligations would be over $100 trillion.

Wait, it gets worse. Entitlements, defense and interest on the
national debt takes up 80% of the entire budget of the
US. That leaves just 20% that can be sliced away if the US wants
to actually cut into its deficits. So what's left to cut? Actually,
nothing that's politically feasible.

To make the picture even more grotesque, the first group of baby
boomers is now reaching the retirement age of 65. As they leave
the nation's work force, the problem of financing Social Security
becomes more difficult if not impossible.

So what in God's name is the answer to all this? How will the
US's finances be handled? There are only two ways that I can
come up with:

The first is -- to default, just declare that the nation
is dead broke and it can't meet its obligations. That would be
tantamount to admitting that the US is less than a third-rate
power, a dying banana republic. Unthinkable.

The second way would be to devalue the currency to the
point where obligatory dollar debts would be financed or paid
off with dollars equal to pennies or nickels.

It's now really a question of timing. With the national debt
compounding at rising rates, the problem of financing the debt
becomes ever-more pressing. For this reason, I believe the process
of devaluing the dollar will have to be speeded up.

From the government's standpoint, the deliberate devaluation
strategy must be kept secret from the public. They must not be
allowed to know that the currency they've worked so hard for,
that the currency their savings are in, is to be crushed
into a shadow of its former self. Ultimately, the awful truth
must come out.

At some point the government may be forced to be honest.
The phrase will be three words that I coined many years ago:
Inflate or die. And, the government's answer will be,
"You wouldn't want this nation to die, would you?"

We have no choice, but to pay off, or carry, the debts, with
a currency that must be devalued down to ten cents on the dollar.

You don't have to be a genius to read the US Dollar chart. Most recently, the Dollar Index dropped through the bottom of the consolidation. Today the cash Dollar Index plunged again (OMG) to 76.99!

At this point, the Dollar Index is oversold and probably overdue for some kind of a rally.

Well, maybe.

Euribor and Shibor - dedicated to dedicated chartists - show similarities . Trichet is in the same trap as PBOC . Thus EUR target 1,4 can only be reached with Trichet muttering magic spells .
Could be . Otherwise range 1385 1375 . For today, geo aside .

yes its large but the value was around 0.4 until mid jan and then rose sharply to unusual high 1.3
and now fell back 0.79 . That is still twice normal. The raise was possibly due to raising problems with Ireland debt. Strange however EUR relative strength fell with Eonia. Suppose
EURUSD will not go above 1.38 in asia trade