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Another Blatant EUR Intervention Leads To 150 pip EURUSD Move In Seconds

Tyler Durden's picture




 

With all the grace of a drunk Keynesian at an Austrian economists meeting, the Central Banks once again kill the EUR shorts and intervene to prop it up, for a ridiculous 250 pips intraday move. And thanks to Germany's Economics Minister Rainer Bruderle, we now know that the Fed is actively manipulating the FX pairs. Thank you Ben Bernanke for making sure that Atari has some confidence left in the manipulated market, as no humans are left any more.

 

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Tue, 06/01/2010 - 10:37 | 386422 Turd Ferguson
Turd Ferguson's picture

Amen brother. But not 150, its more like 200!!

4th time there has been intervention at $/Euro 1.2150.

Vigorously defended there. Why?

Tue, 06/01/2010 - 10:40 | 386437 The Rogue Trader
The Rogue Trader's picture

Turd, I figure they pick 1.2150 so as to not let it come close to 1.2000....a trade below 1.20...well I figure next stop is 1.10...thoughts?

 

Tue, 06/01/2010 - 10:42 | 386450 Turd Ferguson
Turd Ferguson's picture

I hear ya. It at least looks like 1.18 if/when it blows thru 1.21.

But, still, big deal. Why did they choose 1.21? Are they trying to paint the tape so that the algos and hedgies buy in and take over market support for them?

Fuck, I don't know.

Tue, 06/01/2010 - 12:32 | 386837 Groucho
Groucho's picture

your problem is that  you are looking for some kind of strategy in their moves but in reality they are panicking. i think they are playing it adhoc. it's only a matter of (a little) time till this falls apart.

Tue, 06/01/2010 - 14:38 | 387232 Highrev
Highrev's picture

The EUR/USD is poking down into a major support shelf from the 2004-2006 lows. If you go further back in time, you'll find even more important horizontal S/R markers at that level: 1996 lows, 1992 lows, etc. In short, there's a HUGE support band between 1.1910 and 1.2350. After a 20% decline in 6 months, that would be a pretty good place to do some position squaring, wouldn't you say? In fact, with that situation and those technicals, why do we insist that big pops like that seen today HAS TO BE intervention? Why can't it just be the market place itself? BTW: just what are the percentage bulls and percentage bears figures on the EUR/USD? Come on guys. This is a pair that is more than ripe for short squeezes, and eventually an important intermediate term reversal . . . that may be closer than many think. ;-)

Tue, 06/01/2010 - 10:44 | 386458 jkruffin
jkruffin's picture

Indeed, the low was 1.2110  and it started moving up from there and got ridiculous around 1.2150 and shot up 200 pips to 1.2355 which ultimately began the US stock market melt up which has 150 point swing.  It's funny to watch.  It is like watching a kid lying, then keep telling another lie to cover that lie, and another, etc....

 

Tue, 06/01/2010 - 11:06 | 386514 Turd Ferguson
Turd Ferguson's picture

Back down to 1.2286

Could the day be upon us where they have to intervene twice?

Probably not today but when that day comes...and it will...you will know that the shit is either about to hit the fan or is already covering the blades.

Tue, 06/01/2010 - 10:38 | 386424 Cursive
Cursive's picture

This is ridiculous.  What did Sting sing?  If you love someone, set them free....

Tue, 06/01/2010 - 10:43 | 386453 Mitchman
Mitchman's picture

..and if they don't come back hunt them down and kill 'em?  :-)

Tue, 06/01/2010 - 10:46 | 386464 Fish Gone Bad
Fish Gone Bad's picture

+1 Made me laugh.

Tue, 06/01/2010 - 11:51 | 386690 Cursive
Cursive's picture

LOL.  Benron is definitely a stalker type!

Tue, 06/01/2010 - 10:38 | 386425 jkruffin
jkruffin's picture

There won't be any intervention when these foreign banks start collapsing, even Bernanke is not dumb enough to step in front of that truck.  Just waiting for this first ones to start collapsing and the rest will fall like dominos.

Tue, 06/01/2010 - 10:39 | 386427 Jack H Barnes
Jack H Barnes's picture

We dont need no stinking reality, we print this shit...

Tue, 06/01/2010 - 10:39 | 386430 papaswamp
papaswamp's picture

...is that a gurgling bong pipe I hear?

Tue, 06/01/2010 - 10:40 | 386432 BlackBeard
BlackBeard's picture

It's ok.  Notice that their recent currency interventions have all been the equivalent of throwing billions into a bonfire.  The market regains control within 48 hours and the EUR resumes its decline.  Don't expect them to get a better return on their money burning this time either.

Tue, 06/01/2010 - 13:12 | 386948 London Dude Trader
London Dude Trader's picture

Yes, but Bernanke obviously frontruns the equity markets and loads up on S&P 500 futures shortly before the FX intervention, so whatever money they lose by buying EUR they more than make up by selling SPX futures at the top of the post-FX intervention spike.

 

Now wouldn't it be funny if the Fed bought SPX futures and then mistakenly sold billions of EUR, now that would be a fat-fingered fuck-up for them. 

Tue, 06/01/2010 - 10:40 | 386436 Tic tock
Tic tock's picture

What does a central bank do that a treasury can't?

Tue, 06/01/2010 - 10:40 | 386439 Turd Ferguson
Turd Ferguson's picture

Seriously. This has become a fucking joke.

Worse still are the shills and pimps on CNBS who ignore the obvious manipulation and proceed to whine and pout that, even though the market has turned higher, "breadth doesn't look so good".

It's all lies and MOPE. 

Tue, 06/01/2010 - 10:49 | 386479 reading
reading's picture

The breadth these days is like watching two computers playing Pong...

That's CNBS telegraphing that they fully expect to be back in the red in about 5 minutes...if they don't believe it who in the hell would

Tue, 06/01/2010 - 12:49 | 386879 Hdawg
Hdawg's picture

The Establishment have made public they will intervene in the bond markets and stock markets via PPT et al, and now currency markets.  Derivatives can be outlawed at will, so we can not afford over exposure there. 

These are totally rigged markets now with the Establishment as the biggest player pulling the strings of the media lead market changing events.

They will bring the system down to their timetable and steal from non-Establishment participants along the way.

Read your history.

Tue, 06/01/2010 - 10:41 | 386441 SWRichmond
SWRichmond's picture

It's been pointed out before, and by others: how can anyone tell what anything is worth anymore?  Price and value are meaningless when all macro indicators are manipulated.  Profit?  What the hell is that?  How do measure it?  In currency?  This is fucking idiotic and cannot last.

Tue, 06/01/2010 - 12:50 | 386884 Hdawg
Hdawg's picture

The Establishment have made public they will intervene in the bond markets and stock markets via PPT et al, and now currency markets.  Derivatives can be outlawed at will, so we can not afford over exposure there. 

These are totally rigged markets now with the Establishment as the biggest player pulling the strings of the media lead market changing events.

They will bring the system down to their timetable and steal from non-Establishment participants along the way.

Read your history.

Tue, 06/01/2010 - 10:42 | 386446 godfader
godfader's picture

Let me get this straight. You guys are complaining about volatility? What's wrong with big moves up and down, even intraday?

Tue, 06/01/2010 - 10:44 | 386457 Turd Ferguson
Turd Ferguson's picture

Market induced volatility is fine. Comes with the territory.

Direct, central bank manipulation is another.

Tue, 06/01/2010 - 10:42 | 386448 Sudden Debt
Sudden Debt's picture

For every spike up, there is a counter drop twice as big. So the more it goes up the more it will drop. And as it does, the momentum is only growing.

 

Tue, 06/01/2010 - 10:43 | 386455 ZeroPower
ZeroPower's picture

This is fucking bullshit. The only thing thats keeping ES_F also on a tear since the market open.

Tue, 06/01/2010 - 10:45 | 386461 HarryWanger
HarryWanger's picture

Come on now, you know this was caused by a reaction to the in-line as expected ISM number. The EU was waiting for that data all morning.

Tue, 06/01/2010 - 10:48 | 386473 Divided States ...
Divided States of America's picture

Harry, you still short??? If so, I am going long.

Tue, 06/01/2010 - 11:48 | 386675 mephisto
mephisto's picture

Exactly. Here in Europe we all sold at the open, bought back slowly and waited.

Decent data, big short squeeze. No CB intervention is necessary when lifting a stop/loss leads you directly to the next stop/loss. 

Tue, 06/01/2010 - 10:45 | 386463 papaswamp
papaswamp's picture

Oh wow did you see the commadities report...a 57% plunge.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aVi5QeUitk8k

Tue, 06/01/2010 - 10:49 | 386476 snowball777
snowball777's picture

I'm gonna corner the burlap market...we'll need it for clothes.

Tue, 06/01/2010 - 10:51 | 386486 papaswamp
papaswamp's picture

I was thinking tallow myself..

Tue, 06/01/2010 - 10:50 | 386482 papaswamp
papaswamp's picture

For some reason I couldn't edit my misspelling

 

Commodities
Tue, 06/01/2010 - 10:56 | 386493 wagefreedom
wagefreedom's picture

we knew- you passed the math captcha...

Tue, 06/01/2010 - 10:46 | 386468 truont
truont's picture

"All your FX are belong to us"

Tue, 06/01/2010 - 10:46 | 386470 buzzsaw99
buzzsaw99's picture

If they keep this up they will mess up the free markets. lol

Tue, 06/01/2010 - 10:49 | 386477 TheGoat
TheGoat's picture

LOL just shorted again at 1.2326 limit target 1.2255.

More fun than a rollercoaster

Tue, 06/01/2010 - 11:03 | 386505 TheGoat
TheGoat's picture

Beautiful, stop now in place at 1.2305 trading at 1.2275.

Gotta luv a cant lose position.

Tue, 06/01/2010 - 10:57 | 386494 primefool
primefool's picture

That did not feel like CB intervention. More like a bunch of US based hedgies and prop desks taking out all those europeans and asians who shorted EUR at 1.2150 with a stop at 1.23!!

Tue, 06/01/2010 - 11:00 | 386496 williambanzai7
williambanzai7's picture

I am now able to watch currency movements and say WTF knowing who is doing the fucking and when.

Thank you ZH

Tue, 06/01/2010 - 11:05 | 386513 Rider
Rider's picture

I can hear the margin calls to the remaining 100X leveraged FX traders. This is a carnage.

How the FX derivatives markets are weathering? With trillions in value I guess there are some issues there too.

Tue, 06/01/2010 - 11:06 | 386515 jbc77
jbc77's picture

I was just thinking to myself this morning, where the hell are the central banks on this? Well, here they are. How many times have we witnessed this move in the last two weeks, only to have the Euro re-pounded. What a fucking joke the FX markets have become. Getting to the point where it's not even worth trading FX.

Tue, 06/01/2010 - 11:12 | 386528 TheGoat
TheGoat's picture

No you are wrong just have to be patient and wait for the intervention and short it.

My fav has been the AUD coz you know above 95 the RBA steps in. With the AUD down to 83 that trade has run its coarse. Now its called play the euro when it gets pumped like today, short the sucker.

Tue, 06/01/2010 - 11:20 | 386561 primefool
primefool's picture

Not so sure AUD has "run its course". I mean this sucker was at 0.65 a year ago. Lots of juice left in this darling of all the China bulls and commodity bulls.

Tue, 06/01/2010 - 11:32 | 386604 TheGoat
TheGoat's picture

Totally agree plenty of room to move buts its a long way to play with the RBA back up at 95.

AUD depends on how it all works out in China. If it sneezes and Australia starts to slow, unemployment rises the very mortgage indebted Aussie (private debt is 160% gdp) is going to find it tough. If house prices (currently 8 times annual income LTA is 3.8) deflate then the 4 Aussie banks look very shakey.

There is a lot going for the AUD but there is also a strong case against it.

Tue, 06/01/2010 - 11:15 | 386539 Hondo
Hondo's picture

And tell me again why anyone in their right minds would buy into this market.........suckered in by manipulation to have your head handed to you later.

Tue, 06/01/2010 - 12:48 | 386875 hound dog vigilante
hound dog vigilante's picture

Seriously... this is going well past tragedy and reaching comedy... again.

 

The credibility (read: power) of TPTB has now dipped below zero and into the negative scale... this is the part where the wheels come off.

 

Tue, 06/01/2010 - 11:20 | 386560 Scisco
Scisco's picture

Thank you for the post. The drunk reference reminded me of this video.

http://www.youtube.com/watch?v=d0nERTFo-Sk

Good times.

Tue, 06/01/2010 - 15:56 | 387512 Unscarred
Unscarred's picture

With all the grace of a drunk Keynesian at an Austrian economists meeting

Classic.  I'm surprised this line didn't get more run.

Tue, 06/01/2010 - 11:26 | 386588 plocequ1
plocequ1's picture

But, But, But , But Tyler, I thought you said that no matter what the Fed does is not going to have an effect. Bernanke 1, Tyler 0. It's your move Tyler. I'm on your side.

Tue, 06/01/2010 - 11:34 | 386610 HedgingInfinite...
HedgingInfiniteRiskIsNotPossible's picture

Hi, I recently arrived here from Mars, and I have a question. Why do some people think there are "free markets" here? Thanks. Love the Mexican food, BTW.

Tue, 06/01/2010 - 11:36 | 386618 RobotTrader
RobotTrader's picture

"They" are trying to paint a Nipple Bottom on the Euro today...

Call your FX broker and say "Buy!"

LOL...

Tue, 06/01/2010 - 11:52 | 386699 MarketTruth
MarketTruth's picture

LOL, yet for God sake FEED HER some food and make sure she does not go the the bathroom to 'freshen up' after the meal. We ZH'ers should all pitch in to send Robo to Brazil for a new perspective on women :)

Tue, 06/01/2010 - 21:24 | 388369 velobabe
velobabe's picture

robo, your like daddy took the T-bird away, not fun anymore.

W H A T  H A P P E N E D

right inner arm tat.

i gota say her's probably beats mine, bigger, probably better, but i am an athlete and those would probably get in the way of my golf swing.

small waist, though7

did your after hours   s p r e a d

get banned†

Tue, 06/01/2010 - 11:50 | 386684 MarketTruth
MarketTruth's picture

And this outright currency manipulation is why one should have faith in buying physical gold. Expect ongoing currency manipulations as the norm up until the very end. A trapped animal will do ANYTHING to stay alive up until the very last minute.

Tue, 06/01/2010 - 11:56 | 386714 Ed Carlson
Ed Carlson's picture

A Fibonacci confluence zone exists between 116-117.  Nothing but air (and ECB interventions) between here and there.

Tue, 06/01/2010 - 11:58 | 386728 New World Order...
New World Order Fund Class A's picture

It's just another Obese finger.

Tue, 06/01/2010 - 12:46 | 386869 moon_121
moon_121's picture

If it´s fake, it`s dough for your cake! One has to simply love these pseudo rallys.

Tue, 06/01/2010 - 12:50 | 386883 jbc77
jbc77's picture

Sure looks like the daily intervention has less and less desired effect. At day's end the euro could be back to where it was before being given it's daily fed viarga hard on. Sure would love to see it back there just to poke them in the eye and scare them a bit.

Tue, 06/01/2010 - 13:46 | 387058 tahoebumsmith
tahoebumsmith's picture

They are reacting to the inevitable, all it will take is for people to freak out and have a run on one bank like BOA. They will stop at nothing to conceal the truth, at any cost because when the average American Idol watching serf realizes how badly they have been hoodwinked things will finally come to a crashing end. Meanwhile my good little rats, get back on your American Dream wheel to nowhere and we will just continue to fill your dish with pellets and keep your bottle full of water.

Tue, 06/01/2010 - 13:55 | 387089 surfer
surfer's picture

I read something about how as the gap widnened between the pay of regulators and investment bankers/rating agencies the game was on. What you reckon the Money Market desk at a central bank earns  - Monkeys and peanuts springs too mind..

Tue, 06/01/2010 - 14:02 | 387103 jbc77
jbc77's picture

Is anyone watching the currency action? WTF is going on with these moves today?

Tue, 06/01/2010 - 15:34 | 387439 Pretorian
Pretorian's picture

I wouldnt say that is intervention, I will bet that 2 many went short crying for margin calls, the market goes opposite to retail and day traders.

big banks took them out.

Tue, 06/01/2010 - 16:45 | 387714 mchawe
mchawe's picture

50% Retracement of the Monthly chart (the big upmove from Oct 2000 to July 2008) is at 121.29.

Hasn't anyone noticed ??

Maybe there was intervention. Maybe there wasn't!

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