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EURUSD Roll Over Accelerates, Market Playing Catch Up

Tyler Durden's picture





 

After trading as high as mid 1.30s, the EURUSD is rolling over, and its slide is now picking up steam, barely holding on to 1.2858 at last check. The 1.2800 stops are looming, whose break would take the EURUSD back to a 1.27 handle. This may very well still turn out to be the shortest and must futile trillion dollar bailout in history yet. Don't forget it was the EURJPY correlation desks that freaked out on Thursday and drained all NYSE liquidity in stocks. It will be truly amazing if we get another 1000 point move in the Dow... But not up.

 


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Mon, 05/10/2010 - 10:49 | Link to Comment Quintus
Quintus's picture

Amazing.  Who'd have thought that a bunch of insolvent countries offering to guarantee each other's debt would not be a winning strategy?

Mon, 05/10/2010 - 11:16 | Link to Comment Missing_Link
Missing_Link's picture

^^ wins

Mon, 05/10/2010 - 11:28 | Link to Comment Al Huxley
Al Huxley's picture

+1000.  My thoughts exactly

Mon, 05/10/2010 - 11:38 | Link to Comment Hephasteus
Hephasteus's picture

Scam that doesn't work because it's too small tries for all or nothing big score.

Mon, 05/10/2010 - 12:09 | Link to Comment BlackBeard
BlackBeard's picture

Someone hasn't been taking his Flintstone vitamins fortified with rainbows, unicorns and leprechaun skittle shit!

Mon, 05/10/2010 - 10:51 | Link to Comment JacksCompleteLa...
JacksCompleteLackOfSuprise's picture

one trillion fiatscos doesnt go far, and polymer notes are toxic when burned, so you cant even use them to get warm!

Just drink it in for a moment people, I know all of us here on ZH are pretty cynical (lots of doomers and bugs), but looks like the market might be beginning to agree with us. When 1Tn gets you a one trading day uptick, thats just plain scary.

 

Mon, 05/10/2010 - 11:48 | Link to Comment Hulk
Hulk's picture

Thats why many of us in Au Jacks...No simpler decision IMHO

Here's Celente on RT concerning the crash of 2010 and Au

http://www.youtube.com/watch?v=GcbifKU06h4

Mon, 05/10/2010 - 10:52 | Link to Comment Modus
Modus's picture

agreed, eurjpy is all that matters!

Mon, 05/10/2010 - 10:52 | Link to Comment Jack H Barnes
Jack H Barnes's picture

The EU is like watching ObamaCare in a hospital ICU ward... The patients are responsible for each others health, while being in ICU themselves.  There are no Dr's or Nurses, just drugged up patients helping each other out, while more bodys are brought in or hauled out.

Mon, 05/10/2010 - 11:50 | Link to Comment spekulatn
spekulatn's picture

+1000

Mon, 05/10/2010 - 11:02 | Link to Comment LongGold
Mon, 05/10/2010 - 10:55 | Link to Comment Graphite
Graphite's picture

Better prep a few hospital beds for the rest of the finance ministers ....

Mon, 05/10/2010 - 11:01 | Link to Comment Jim in MN
Jim in MN's picture

Wee Euro Winkie

Runs through the town

Upstairs and downstairs

In his nightgown

Peeping through the windows

Crying through the lock

"Won't this wolfpack ever sleep?  We can't get more in hock!"

 

Mon, 05/10/2010 - 11:04 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

It takes more and more of the (financial) drug of dependency just to avoid the ravages of withdrawal, the dreaded DTs.

Also know as the "Delirium tremens (colloquially, the DTs, "the shakes", "the horrors", "the heebie geebies", "the fear", "the abdabs", "the staggers and jags", "the jimjams", "jazz hands", "the shakes and the heaves", or "the rats"; afflicted individuals referred to as "jitterbugs" in 1930s Harlem slang); literally, "shaking delirium" or "'trembling madness" in Latin) is an acute episode of delirium that is usually caused by withdrawal from alcohol, first described in 1813.[1][2] Benzodiazepinesare the treatment of choice for delirium tremens (DT).[3]"

http://en.wikipedia.org/wiki/Delirium_tremens

Mon, 05/10/2010 - 11:13 | Link to Comment strannick
strannick's picture

In the new Keynsian economy, a trillion dollar bailout doesnt get you what it used to.

In the case of the Euro, it only got 8 hours of a 2 cent lift against the greenback.

Mon, 05/10/2010 - 11:15 | Link to Comment nonclaim
nonclaim's picture

the shortest and must futile trillion dollar bailout in history yet

One must remember it is a *non-funded* trillion dollar bailout.

Mon, 05/10/2010 - 11:23 | Link to Comment mikla
mikla's picture

+1

It only takes moments to move electrons for bank balances, but this "promise" is just that -- we didn't even make the effort to move the electrons.

Instead, central planners merely promised a future moving of electrons.  And, you can take that to the bank.  ;-)

Mon, 05/10/2010 - 11:24 | Link to Comment mephisto
mephisto's picture

EURGBP down 50bps on the day - so GBP has rallied more than EUR.

Gold 1200.

That wasnt in the plan.

Mon, 05/10/2010 - 11:25 | Link to Comment EscapeKey
EscapeKey's picture

The fact that Gold is only dropping less than a percent is kind of telling.

 

Mon, 05/10/2010 - 11:25 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

There are few sights more terrifying to a father than watching ones' young child claw at his throat, in duress, struggling to gather a breath. This scenario played out for your humbled blogger as my son's peanut/tree nut allergy flared up in full force after a family outing yesterday. Fortunately we had the necessary medicines, benadryl and an EpiPen, which did stabilize him as an ambulance quickly arrived to whisk us to the Children's Hospital Emergency Room. The missus and I had notified our family that our son did have this allergy and folks had agreed to put any desserts or foods that contained such ingredients out of reach, but the soon-to-be 4 year old is in the 100% percentile on height and is developing a commanding reach. Even given our best intentions he must have spied a tasty dessert and indulged himself. The solution is clear, if a function carries any foodstuffs with allergic ingredients we just can't bring the family and we're going to have to put an alert bracelet on him.

Consider though, gentle reader, the following analogy where his nut allergy is our financial crisis. In that scenario most certainly the parents would have been chagrined by the duress. However these parents would have resolved to first consider how debilitating all different types of nuts might be and then resolve to put the 'nut buffet' on a table and pretend that the table in fact did not exist. If however one tenacious fella at the family function named Market did, vaingloriously, begin to pontificate on the disappeared table still in plain sight, then the parents would assuage him with a team of physicians at the ready with limitless medicine at their disposal. Further, they would argue the very sight of the flotilla of remedies would, by themselves, dissuade the deleterious effect of the allergy and lastly the table of nuts was in fact required for a balanced diet notwithstanding the potential knock-on effects that as previously stated would be tightly monitored...

The child is safe with us! No worries...

In reading about the latest Nancy Capitalist exercise in can-kicking, Le Tarp, the oh so fine print suggests that the implementation of the European bazooka (or better yet hookah) is contingent upon the need to go through 'the parliamentary procedure' in the relevant member states.

Good luck with that!

As the preliminary results of Germany's North Rhine-Westphalia's elections come in suggesting legislative gridlock, one wonders if we will be blessed with a redux of Paulson, er I meant Trichet on bended knee, in front of Merkel?

Wolf pack a circlin', Febrile piiggies at the trough, Greek skies are going to fear up, as they task the Keynesian whores.

Those who fail to learn from history may be doomed to repeat it but those that purportedly have learned the lessons, but now proclaim they are masters of their fate and that this time is in fact different, are doubly damned.

Mon, 05/10/2010 - 11:53 | Link to Comment Hulk
Hulk's picture

Happy to hear all is well now. Concerning your last paragraph all I can say Is the best laid plans of mice and men. Its only life. Either way, no one gets out alive...until then we play it the best we can

Mon, 05/10/2010 - 12:55 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The abject terror and emotional pain a parent feels when they have done all they can and yet their child is still suffering is horrifying. My son had severe asthma when he was very young and I remember those days all too well. My heart goes out to you, your spouse and anyone who witnessed your son's desperation.

On the other side of that agony was the wonderful emotional relief and gratitude I felt when my son's breathing began to normalize and some color returned to his face. I would never have felt that wonderful rush if I hadn't first been in such a desperate state. My biggest fear was that one day my terror would not be rewarded with that blessed relief. May you never ever suffer the first without receiving the second.

"...the oh so fine print suggests that the implementation of the European bazooka (or better yet hookah) is contingent upon the need to go through 'the parliamentary procedure' in the relevant member states."

Ah, the fine print, the speed bump for all wishful thinking souls who are desperate to regain false hope. I suspect this latest triumphant trumpeting of the all clear is predicated upon the notion that no right thinking parliament would consider rejecting what is clearly life giving medication.

If the doctors at the hospital told you that your son wasn't responding to "normal" medications and his only hope was a special peanut derivative, how desperate would you need to be to agree to it's application? Yet this is precisely the solution being offered to the EU members. One can only hope they take a moment to reflect upon the insanity being promoted and reject the quacks cure.

Mon, 05/10/2010 - 13:01 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

The mendacity of hope and the urgency of not CD.

They are stuck in amoment and they can't get out of it.

Mon, 05/10/2010 - 13:02 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

The mendacity of hope and the urgency of not CD.

They are stuck in a moment and they can't get out of it.

Mon, 05/10/2010 - 13:53 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"They are stuck in a moment and they can't get out of it."

Ah yes, the cowards' lie to himself to justify doing nothing. "Help, I've fallen down and I can't get up. Save me from myself. Make me stop writing bad checks." And so on. The only real question unanswered is who are the real cowards, the parliament or the people. It will be interesting to see if the citizens of Germany, UK and the other more "stable for now countries" show their displeasure like the Greeks did.

Everyone dismissed the Greeks as over fed, under worked spoiled children throwing a temper tantrum. As if the solution to the problem was simply a little austerity rather than an economic system permanently stuck on out-of-control-by-design. Now let's see if the slimmer, more over-worked EU countries can act just as outraged by the insanity of the system as the Greeks did while working off a few excess pounds lobbing tear gas canisters back towards the police lines.

One can only hope for false hope, can't one?

Mon, 05/10/2010 - 11:27 | Link to Comment A Man without Q...
A Man without Qualities's picture

Ok, so you are short EURUSD, we get it.....

Mon, 05/10/2010 - 11:28 | Link to Comment lizzy36
lizzy36's picture

the paper will be defended.  just not it's value.

Mon, 05/10/2010 - 11:35 | Link to Comment curbyourrisk
curbyourrisk's picture

tyler.....1000 point move down.....you are getting me excited!

Mon, 05/10/2010 - 11:37 | Link to Comment Psquared
Psquared's picture

Market seems not one bit perturbed. Almost at the highs for the day and it is getting close to lunchtime.

I'm launching a new hedge fund made up of derivatives taken from bets based on computer algos and a new supercomputer buried underground at 85 Broad Street, NY, NY. on whether the EU bailout will succeed. I will be securtizing these into traunches based on mathematical odds which Moody's has agreed to rate AAA and they will be leveraged to pay a 20% dividend as a pass through directly to investors.

The "house" bets the DOW will be at 12k by 12/1/10. The crash will occur on 12/21/12 as it turns out the Mayans were correct and very good speculators and traders.

[Disclosure: I have no position in the EU or the $$ - I rely a system of barter. Plus, this IS a joke!!]

Mon, 05/10/2010 - 12:04 | Link to Comment SheepDog-One
SheepDog-One's picture

The 'markets' are obviously now just a TV exhibit, totaly meaningless in todays lowest ever 3% rally. Euro is re-plunging, gold is holding tight, seems this monopoly printfest over the weekend is a last gasp.

Mon, 05/10/2010 - 11:38 | Link to Comment Psquared
Psquared's picture

Bilge

Mon, 05/10/2010 - 11:41 | Link to Comment Turd Ferguson
Turd Ferguson's picture

Anyone know what UK CDS are trading at today?

They might/should be next.

Mon, 05/10/2010 - 11:49 | Link to Comment 4shzl
4shzl's picture

Says Rosie:

Since the ECB has come out and said that it will buy both government and corporate bonds, then what is clear is that any rally in the Euro should be faded because the lines between fiscal and monetary policy has just become blurred. The cost of the ECB helping drive long-term yields in the periphery lower is jeopardizing the sanctity of the central bank balance sheet. And, just as the Fed has ceased in expanding its balance sheet, the ECB is set to expand its balance sheet, and this is a Euro-negative. Of all the knee-jerk bounces today, the Euro is the one most vulnerable to reversal.


 

Mon, 05/10/2010 - 11:50 | Link to Comment SheepDog-One
SheepDog-One's picture

So the broke winos under the bridge got an idea- 'Hey lets all pitch in and buy some more M/D 20-20, and the world rejoiced at the brilliant plan? Yea OK.

Mon, 05/10/2010 - 11:52 | Link to Comment Jim in MN
Jim in MN's picture

Definitions: Currency markets

Betting on the duration of buoyancy of a padded cell floating on the ocean.

Mon, 05/10/2010 - 11:53 | Link to Comment JonTurk
JonTurk's picture

schemey ben would put a bid under EUR, other side is the apocalypse..

Mon, 05/10/2010 - 12:02 | Link to Comment b_thunder
b_thunder's picture

Ben Bernanke in a Darth Vader's mask, in Darth Vader's voice: "Don't underestimate the Power of the USD/Euro currency swaps lines"

 

Mon, 05/10/2010 - 12:06 | Link to Comment williambanzai7
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