EUR

Germany And Greece Play Chicken In Demolition Derby, Euro Smashed

Its the European Demolition Derby. Smash! Crash! Crunch! Whack! Fenders banged up. Radiators steaming. Tires flattened. Greece and Germany are playing chicken. Greece presses down the accelerator and heads for Germany.

If you force us out of the euro, all of Europe will go up in flames, say the Greeks.

Oh, Ja? say the Germans, turning on the speed in their Mercedes, and we wonder which one will lose his nerve? Or will they crash head-on? Nobody knows for sure, but nobody wants to have money in Greek banks, in European periphery banksor even in euroswhen they find out.


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This past week more money leaked out of Greece and out of the euro, which fell to its lowest level in two years as Europe braced for turmoil. One headline said Greece was making plans to withdraw from the euro. The Greeks promptly denied it. You know what they used to say in Soviet Russia: no rumor is confirmed until it is officially denied.

De La Rue, an English company that prints most of the worlds currencies, would not say whether an order for drachma had come through or not.

The big beneficiary of all this capital flight from European smash-ups has been the good ol greenback. How about these May flowers: just this month, the U.S. Dollar Bullish (UUP) ETF has ticked up 4.6%. The Currency Shares Euro (FXE) have tanked 5.5%.

Commodities from top to bottom have been slayed, too. The US Oil Fund (USO), which tracks the price of crude, has been hammered 13.8% lower in May. Crude spilled below $90 last week but bubbled back at weeks end with the West Texas Intermediate flavor fetching $90.72 per barrel.

Metals have been mauled. For the month, the SPDR Gold Trust (GLD) is down 5.7% and iShares Silver (SLV) has been whacked -8.3%.

forbes

looks like we might see test of my preferred target of 22xx level by next week or the following week.
any bounce(if any) will face strong resistance around 2700/20 for good short entry again. only break above 2825 may see further recovery to 3000/3050 level...

initial downside target remains @ 2200/2250 where we could see a bounce of 350/400 pips at least.

gl/gt

UBS had tp for euro 1.25 this year , last year they had 3200

good morning..sidelined till monday night..looking for some 'tush'

cat, perhaps don't underestimate the Golden Ratio in all things, art, geometry, nature. political and market sentiment..and on and on...not that silly...

and good luck to you and all..

I keep the pos EURUSD long 12559 . It is simple to hedge with EUR short vs AUD NZD even JPY.
It is entirely irrational to try to trade politics--- about as silly as to predict politics with chart analysis--but as Merkel is now alone in right corner a move must come that will propel EUR some hundred pips up and bunds yield at least a full percent up.