EUR

wow he info..

euro/usd and usd/chf both in 1 hr tunnel and euro headed up and $/S headed downtown manhattan..
perhaps 55/89 pips

but 4 hr short euor/$ and usd/chf long...with euro target sub 3350

current 13586

caveat...smokin dat cali

Ambrose Evans-Pritchard
Sept. 27 (Telegraph) -- Germany and America were on a
collision course on Tuesday night over the handling of Europe's
debt crisis after Berlin savaged plans to boost the EU rescue
fund as a "stupid idea" and told the White House to sort out its
own mess before giving gratuitous advice to others.
German finance minister Wolfgang Schauble said it would be a
folly to boost the EU's bail-out machinery (EFSF) beyond its
440bn lending limit by deploying leverage to up to 2 trillion,
perhaps by raising funds from the European Central Bank.
"I don't understand how anyone in the European Commission
can have such a stupid idea. The result would be to endanger the
AAA sovereign debt ratings of other member states. It makes no
sense," he said.
Mr Schauble told Washington to mind its own businesss after
President Barack Obama rebuked EU leaders for failing to
recapitalise banks and allowing the debt crisis to escalate to
the point where it is "scaring the world".
"It's always much easier to give advice to others than to
decide for yourself. I am well prepared to give advice to the US
government," he said.
The comments risk irritating the White House. US Treasury
Secretary Tim Geithner has been a key driver of plans to give the
EFSF enough firepower to shore up Italy and Spain, fearing a
drift into "cascading default, bank runs and catastrophic risk"
without dramatic action.
The danger for Germany is that America will lose patience,
with unpredictable consequences. The US Federal Reserve is
currently propping up the European banking system in a variety of
ways, including dollar swaps.
Markets across the world ignored the mixed signals about the
true scope of EU rescue measures, convinced that EU leaders have
a "grand plan" up their sleeves and will unveil the details after
the Bundestag has voted on Thursday on the earlier July deal to
revamp the fund.
France's CAC-40 surged by 5.7pc, led by a 17pc rise for
Societe Generale. Germany's Dax was up 5.3pc. The FTSE 100 jumped
4pc in London, the biggest one-day rise this year. Oil jumped
almost $4 in New York to $88 a barrel.
In Berlin, Chancellor Angela Merkel was fighting for her
political life as the rump of lawmakers from her coalition vowed
to reject the EFSF package, though the latest tally suggests she
may squeeze by with her own majority. Angry dissidents suspect
that secret plans are being withheld until after the vote.
Greek premier George Papandreou told German business leaders
that his country would honour its austerity pledges, but also
issued a veiled warning. "The persistent criticisms levelled
against Greece are deeply frustrating, not only at the political
level, where a superhuman effort is being made to meet stringent
targets in a deepening recession, but frustrating also for the
Greeks, who are making these painful sacrifices."
"Drastic measures have had a dramatic impact on the living
standards of our citizens. Many Greeks feel they have little left
to give. If people feel only punishment and scorn, this crisis
will become a lost cause," he said.
Mr Papandreou's Pasok party passed a crucial vote on Tuesday
to raise property taxes, but at a high political price. The
party's approval rating has fallen to 15pc in the latest Mega
poll.
However, Greece was confronted with a new threat as it
emerged that several eurozone members are demanding the private
sector absorb bigger losses than originally agreed as part of a
second bail-out.
A deal struck in July would see creditors taking 21pc losses
on their Greek debt holdings, adding around 45bn to the 109bn
proposed second rescue. However, more than a third of the
17-member single currency bloc are now said to be demanding
bigger haircuts for the private sector. Talk of revisions to the
second bail-out may renew default fears as the IMF has yet to
re-engage with Greece over the latest 8bn tranche of its initial
110bn rescue. Greece is at risk of running out of money by
October 8, though analysts say the payment is almost certain to
be made whether or not Greece has complied fully with the terms.
Greece has a trump card in rescue talks with the IMF-EU
"Troika". If it opts for a "hard default", it could set off a
chain reaction. Lorenzo Bini-Smaghi, an ECB board member, said
those arguing that Europe's banks could withstand a Greek default
are misguided. "Similar views were held before Lehman. Those who
say this have no idea how contagion works," he said.
Analysts say the Troika will have to approve the next 8bn
tranche of aid for Athens in October whether or not Greece has
complied fully with the terms. It cannot risk a showdown before
Europe's banks have beefed up their capital base, or before the
EFSF is fully equipped to d

g'day.. is euro bounce running out of steam?.. furthermore..

"..CitiFX calculated FX flows as per Monday's close suggest end of month inflows to the USD from
other developed market currencies except versus the yen.."

ah ok semantics i call that yield differential. We have seen:
FED announces operation twist, accordingly, 10y 30y yields fall, gold rises. But then gold is sold off ( although with negative real interest it should further go up) and..wow yields rise.
While bund yields have been rising all the time with new lows today.
I think that CDS price on bonds must be factored in. Yield differential works in favor of the currency yielding higher only if the yield differential is not just a consequence of rising CDS.
Thus USD is considered the safer currency. This will only change with introduction of Eurobonds
because the TALF EU is now working on is worse than the FED's 2008 TALF as the FED accepted only triple A rated collateral, while the ECB is about to accept anything as collateral.

zgbn
i don't get what you mean. You mean the Eur yield curve vs TSY yield curve? Those 2 5 10...year spreads?