Citi, whose Steven Englander has been bearish on the EUR for a while, and with good reason although when faced with central planning, and Chinabot of course, it is tough to remain rational, sane, and certainly solvent, when the market can remain idiotic and socialist for far, far longer, has just released another note bashing the kneejerk reaction in the EUR. Bloomberg's terrific new All News service summarizes.
- Euro may rally during the next couple of trading sessions on relief of short-term uncertainty though long-term issues remain, Citigroup FX strategist Greg Anderson writes in client note.
- Short-covering rally to as high as $1.45 “feasible”
- "As markets take their time to ponder longer-term issues, we wouldn’t expect them to suddenly become euro bullish and bid EURUSD up beyond that”
- "One of the apparent drawbacks of this deal is the moral hazard it creates for other eurozone countries that already have a bailout deal with the Troika or that could end up needing one in the next several years"
Moral hazard? Someone actually cares about the Bernanke doctrine of global moral hazard, when this is the only thing keeping any and all markets afloat now and until the next and final crash? Please.