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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
such a precise indicator of stock market rally? No matter what EUR USD is, every time EURZTY falls
i.e. ZTY raises a stock rally follows. And vice versa.
The ECB borrowed $1.2 bln from the Fed this week after not borrowing last week.
The BOJ borrowed for the first time since the lines were reopened, tking $210 mln.
The amounts are trivial but raise the question as to the institutions that feel the need to resort to these pricey borrowings.
Cost to lifting covers is getting high, that can mean markets are favouring further speculation or want out.
Not sure for who or why but a US giant is leaning heavily on EUR/USD. It has fallen as low as 12204 so far. Next support of note is the 12180 level.
Looks as though day traders were expecting more Asian central bank dip buying to limit the downside but it looks as though they may have already have gotten their fill
Traders also mote solid buying in USD/CHF from a Swiss mega bank, helping ramp that pair to a fresh session high at 11652. A US custody name is involved on the buy-side as well.
Rumors of a Spanish downgrade continue to swirl through the markets, bouncing around like a chain letter.there have probably been three or four in the last 48 hours alone
EUR/USD is modestly pressured at the moment, unable to sustain gains despite some jawboning from the ECB, a downwardly revised US GDP report and denials by China and Kuwait that they are concerned about euro holdings. Even talk of euro demand at the fixing at months end isnt helping.
Objects in motion tend to stay in motion, I guess. EUR/USD trades now at 1.2235.
Very minor support is seen at 1.2220 with more at 1.2180 followed by the 1.2145/55 zone, the line in the sand
This is what happens when something as little as man's ego get best of his wits. People are so damn sure that this Euro is going down that they forget to see signs of a bottoming trend forming and not considering it as a buying opportunity. May's over! we've gotten range bound like in feb into march. 12160 12640 will play for now as a range till we see some up side around end of June.
Thank God someone plugged that mother oil gusher. Most people do not realise but this is a big big big BIG environmental loss and for country like US that used, delayed the issue as long as it has prolonged. Shame on them! for using accident/disaster/or whatever as excuse to let this continue, I certainly hope their motive was not that it would create some more contractual jobs so no need to call an emergency, cuz that's what I think the local governors and Obama should have called in. That would be very sad. And shame on BP for let this go by play by play.
"I would love to find out who started that absolutely egregious rumor yesterday that the PRC was goign to short the Euro.
If anyone can keep a secret, it is the Chinese. If the Chinese were really going to sell, believe me, there would be no leaks about it.
The rumor was about as transparent a lie as they come"
:-)
The news that China is reviewing eurozone investments has been officially denied, as expected, resulting in a rip higher in EUR/USD that reached 12343. Plenty of sellers were seen into strength and the rally did not last long.
12130/50 remains the line in the sand while 12375 is important resistance on rallies.
Kuwait Investment Authority Denies Reducing Euro Exposure
Denied, denied, denied.
No change in investment strategy, KIA says.
Remind me not to invest with the KIA
US Q1 GDP Revised Lower To 3.0%, Claims Fall To 460,000
The core PCE price index, the Feds favorite price measure, was steady at a low 0.6%.
While the report is not particularly upbeat it looks good compared to Europe where growth is slow outside of Germany. Not much lasting market impact from this one, I suspect.