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

Tyler Durden's picture

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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?

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?

 

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.

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.

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. ;-)

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....

 

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.

Cursive's picture

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

Mitchman's picture

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

Cursive's picture

LOL.  Benron is definitely a stalker type!

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.

Jack H Barnes's picture

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

papaswamp's picture

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

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.

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. 

Tic tock's picture

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

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. 

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

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.

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.

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.

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?

Turd Ferguson's picture

Market induced volatility is fine. Comes with the territory.

Direct, central bank manipulation is another.

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.

 

ZeroPower's picture

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

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.

Divided States of America's picture

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

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. 

papaswamp's picture

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

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

snowball777's picture

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

papaswamp's picture

I was thinking tallow myself..

papaswamp's picture

For some reason I couldn't edit my misspelling

 

Commodities
wagefreedom's picture

we knew- you passed the math captcha...

truont's picture

"All your FX are belong to us"

buzzsaw99's picture

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

TheGoat's picture

LOL just shorted again at 1.2326 limit target 1.2255.

More fun than a rollercoaster

TheGoat's picture

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

Gotta luv a cant lose position.

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!!

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

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.

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.

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.

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.

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.

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.

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.

 

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.

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.

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.