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

Discuss EUR in this thread
 
Ashraf Laidi
London, UK
Posts: 0
15 years ago
May 10, 2010 15:45
DETAILS OF EU/IMF/ECB Rescue

1. The 750 billion funding facility consists of 440 billion in government-backed guarantees from Eurozone nations, a 60 billion of in loans from the European Commission and 250 billion from the IMF in the form of fiscally-driven package (the bulk of which will be paid in by the Funds largest shareholderthe US).

2. The participation of the ECB will take the form of buying Eurozone govt bonds (purchases already taking place by Bundesbank, Bank of France & Bank of Italy but not yet by ECB) as well as 3-month and 6-month loan facilities at a fixed rate of 1.00%, but no 12-month facilities.

3. FX swap facilities were re-opened among the 6 major central banks (Fed, ECB, BoJ, BoE, BoC and SNB) aimed at reviving liquidity in USD-denominated money markets. As risk appetite falls and money market liquidity dries up, banks sustain a shortage of US dollars. These FX swaps are in effect a USD-denominated flow from the Fed to various global central banks in exchange of other currencies.


EURUSD is apt to accumulate gains at the NY open above $1.3080s, but any breach of $1.31 is expected to be limited at $1.3140. Medium-tem upside risks could suggests an extension to $1.3490s. Macro challenges facing Greeces austerity requirements as well as the remaining doubts with Spains short-term debt suggest a protracted retreat towards $1.23, followed by $1.17 by Q3, EURGBP has yet to prove that the 300-point recovery of the last 3 days is more than just the result of GBP uncertainty, therefore, a weekly close above 0.87 is required to reverse the 2-month downtrend.


Ashraf
lucky
ibadan, Nigeria
Posts: 377
15 years ago
May 10, 2010 15:41
after what is happening in euro shows they are proper thieves i hope we escape their traps with less damages good luck guys beware of euro now is like sowing machine
Stationdealer
London, UK
Posts: 715
15 years ago
May 10, 2010 15:39
catnip so you do agree its a euro deflation process going on right from what we see? If so, other than euro what signals it. If production which is growing at the moment and interest rate staying static then why raise deflation measure, cuz the risk can come if jobs start decreasing and if that happens what you will see coming straight out of ECB's bag is going to be a rate hike that might continue. Please express further how you see and Ashraf at this moment what do you think ECB would be looking at for further growth measure and avoiding deflation.
Stationdealer
London, UK
Posts: 715
15 years ago
May 10, 2010 15:33
Ashraf is this some kind of devaluation strategy by the EMU and central banks? Cuz if it is i hope they have some back up plan cuz traders will mercilessly try to destroy the euro way below 120 if this continues and if that's the case it seems very drastic and desperate
catnip
Frankfurt, Germany
Posted Anonymously
15 years ago
May 10, 2010 15:27
The emergency measure is accepted if gold returns below 1000 . The danger is not inflation it is
Eur deflation that means if eur is frozen then eurozone economy drops dead.
So it could be eurozone banks could rally more BUT the put on deutsche I sold earlier is still raising
( due to VIX possibly )
Stationdealer
London, UK
Posts: 715
15 years ago
May 10, 2010 15:00
The emergency loan package crafted over the weekend has the potential to calm down the market but should not be viewed as a long-term solution, head of the IMFs European section Belka says.
Comforting. EUR/USD trades down at 1.2890 watch for 12865 down side risk.
Gunjack
London, UK
Posts: 1184
15 years ago
May 10, 2010 14:53
@Catnip...nice work pal...I'm still keeping part my of long SAN CFD's, could be more upside in the coming months
catnip
Frankfurt, Germany
Posted Anonymously
15 years ago
May 10, 2010 14:38
I did sold call with 60% profit ...i said SOLD.
Gunjack
London, UK
Posts: 1184
15 years ago
May 10, 2010 14:34
Wonder if anyone else went long Santander...nearly 21% up today alone
sydneyjames
Sydney, Australia
Posts: 348
15 years ago
May 10, 2010 14:12
I am a swing trader, would anyone please point out where is the next trend going ?