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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
1,2500???
maybe...but than,,,,BIIIIIIIIIIIG sell!!!
Umm, yes they were.
As expected, the 3-month refit provided sufficient to supply the liquidity needs as the market prepares for the expiration of the ECBs 1-year liquidity-provisions tomorrow.
There are lots of things to worry about in Europe but the ECB not supplying the market with enough liquidity is not one of them
Why Yes. The market is fixated on the maturity of the ECBs 1 year refi operations on Thursday when EUR 442 in funding will have to be replaced. The ECB had phased out its long-term refi operations over the last several months in an effort to wean European banks off of central bank life support. When the sovereign debt crisis hit its crescendo in May, the ECB reinstituted 3-month fixed rate refis with full allotment, meaning banks could borrow as much as they like.
So the net effect is that a one-year lending facility is being replaced with a three-month lending facility. Sounds like a tempest in a teapot, but thats what forex markets thrive on..
Things are fine for me so far. Yes, I am also watching 1040 in S&P and Aussie mining tax proposal by Julia Gillard tomorrow morning.
But then again I am getting skeptical about shorting US$ with NFP approaching.
What are your thoughts Fridays NFP?
Housing and Europe will remain drags on the economy but he expects the recovery to continue, he tells CNBC.