EUR

Yes that's the question. A retracement must come sooner or later. Looking at the weekly and monthly this looks really perky.

Regarding the PIIGS: This is fully priced in.

Even Jim O'Neil thinks it might go down to 1.20.

station dealer ,xaron what about inflationary pressures in china and there fiscal tightening surely this will lead to declines in commodities and commodity related currencys, also do you believe we wont hear any more bad news out of the e.u?

I'd like to add that the ECB in the past always was more hawkish than the markets thought they would be. ;)

Catnip if the good prof is right then so-long to your deflation concerns, and if you ask me that can not happen over night or without Bundesbank announcing it to the parliament and to other commercial banks. Any such concerns in my view are absolutely absurd and unfounded.

However the that's true xaron while Fed may keep rates lower for this year, ECB and BOE may likely raise interests rates to hinder the rise of inflation. All those people who right now are thinking well the commodities are down, rates are low there will be no risk in the coming months and years frankly their all wrong. Politicization has already begun in EU. Inflation will still be a concern, wage driven inflationary risk may arise, commodities will rise again, while unemployment will remain higher much of this years specially in the US. Regulation overall is the next risk people should look out for, fun's over boy. Greece will confirm their payments tomorrow 19th may and euro will continue to rise until next week.

Last week i talked about the true contrarin Jim O'neil of GS to come out and give his veiws on the EUro situation guarantees in an interview on bloomberg that the Euro will not fall below 120.

Frankly i dont need to know anything more, Jim has spoken people wakey wakey stop beliving in rumours and do what needed to be done. I've already liquidated all my shorts and now in long on euro, pound, kiwi, aussie and oil