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Meet The Latest Member Of The Plunge Protection Team: The European Central Bank
The long-debated topic of whether the ECB intervenes on behalf of the euro can now be put to rest. 120 pip move in a minute is not a short cover. It is, and always has been, forced central bank intervention. Bernanke is so happy Trichet is doing his work for him for the time being. Be very wary of buying stocks on this intervention, as Central Bank involvement now at best leads to a 12 hour temporary "fix" to the market that Bernanke et al want to sustain.
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Ya saw the 1min candle on EURJPY go 70pips and i was like 0.o 0.o 0.o 0.o
One can only wonder what tomorrow will bring...
Option experitation day on a crash moment
Germany going to trash up the euro this weekend
the rest of europe doing the same
US banks are shorting the $ on a massive scale so that's going to cost them dear. Maybe a second financial baillout needed because they shorted the US... wouldn't that be nice...
...
I think some people are planning to sell, and the PPT won't be able to buy it all. Unless they want to own 75% of all stock in the US and the EU
what makes u think Germany is going to trash the Euro this weekend? Merkel has made the consesions needed to get the vote in favor of their part of the bailout.
Oh, that's a relief, I couldn't possibly figure out who just suddenly wanted to buy like SIXTY-TWO TRILLION EUROS in sixty seconds.
It's already fading, how much was burned for a 20min relief? Or, what was scheduled to trade in that period that required such action?
It's the SNB, not the ECB. And I'm short at 1.2475
Sure theyre propping up the CHF but dont think the ECB doesnt have its feet in the mud either
???
CHF = Swiss Frank
CH = Confederation Helvetica (Latin for Switzerland)
I know that; but they (SNB) are certainly not propping it (CHF) up! Trashing it, perhaps, but not propping it up...
Sorry. And you're correct, their selling it lower, not propping it up, by purchasing euros.
Euro Erases Loss Versus Dollar on ECB Speculation (Correct)
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By Ben Levisohn and Mary Childs
(Corrects direction of franc in lede.)
May 20 (Bloomberg) -- The euro gained against the dollar, erasing an earlier loss, as speculation the Swiss National Bank sought to weaken the franc drove traders to theorize that the European Central Bank may do the same for the shared currency.
The euro earlier traded near a four-year low against the greenback and slid to the lowest level since November 2001 against the yen as the euro region’s sovereign debt crisis spurred investors to seek refuge in the Japanese currency. The yen rose against all its most-traded counterparts as the Standard & Poor’s 500 Index extended its plunge from last month’s high by as much as 12 percent and crude oil fell to its lowest level since July.
“There have been rumors of intervention by central banks,” said David Rolley, who helps oversee $106 billion as co-head of global fixed-income in Boston for Loomis Sayles & Co. “Most of the movement you’ve seen has been weaker commodities, weaker emerging market currencies and weaker commodity currencies, all correlated with the belief that the recovery may not be as strong as previously expected.”
The euro rose 1.2 percent to $1.2565 after earlier falling as much as 1 percent to $1.2297. It touched $1.2144 yesterday, the lowest level since April 17, 2006. The shared currency dropped as much as 3.8 percent to 109.51 yen, the lowest level since November 2001, before trading at 113.20 yen at 3:02 p.m. in New York.
The Swiss franc weakened against the euro, falling 1.2 percent to 1.4449. It earlier strengthened as much as 1 percent. The SNB’s press office couldn’t immediately be reached for comment.
[...]
Last Updated: May 20, 2010 16:24 EDT
Agree with your previous responses, i meant propping the EUR, just was talking about the SNB so had francs on my mind:)
I'd think the SNB has just about enough Euros after yesterday. Why would they buy more and sell USD when that needs more ammo for the bigger market?
Agree with the trade tho. I dont think its intervention, its rumours only and we could go down as fast as we went up. Stops around 1.2510-25 I believe.
What a move - trip the stops below the fall 2008 lows then shoot up on ridiculous volume.
That there may be your bottom
LET'S ALL TRY TO EXIST THE STOCKMARKET IN A ORDERLY FASHION!!
ME FIRST!!! BEEP BEEP ZOOOOOeeeeeeefffffffffffffffffffffffff.......
Yeah, and with HIS dollars too!
If they can just keep this intervention up for the next 50 years we should be able to ride this storm out.
Methinks Trichet doth protest too much
http://www.bloomberg.com/avp/avp.htm?N=av&T=Trichet%20Says%20ECB%20Not%2...
It looks like he's standing behind a giant printer.
check out the CADUSD trade...shiiiit
Posted by Neil Hume on May 20 15:54.
Warning: the following note from the normally mild-mannered European Rates Strategy team at RBS is seriously bearish.
They think the yield on 10-year US Treasuries can trade at 2.0-2.5 per cent.
Eat your heart out, Bob Janjuah.
First the context, emphasis ours throughout:
And now the conclusion:
http://ftalphaville.ft.com/blog/2010/05/20/238051/the-great-depression-ii/
Be wary of Central Banks committing taxpayers money to support financial markets that benefit their own.
are you sure tyler? maybe the dollar confidence crisis finally arrived. i know i wont be holding no dollars after todays completely unmanipulated stock action.
It's like trying to patch a gash in the Hoover Dam (yeah, I chose that on purpose) with bubble gum. It might work for a minute or two. But man when it cuts loose...
Heroin addict Benny B. getting his daily fix....
http://www.youtube.com/watch?v=iJZYG5qwHHI
The desparation acts of a failed central bank model. This is history before our very eyes.
ECB and FED will = EPIC FAIL.
Looks like we'll have to fire up a second vulcano to draw the attention away...
Could the EU and Fed Interventions be longer lasting if they used Synthetic Financial Instruments to Intervene so that they could get the same kind of Leverage that lets say the other Supplemental Liquidity Provider can get? Or are all Central Bank Interventions default "Synthetic?"
Synthetic Financial Instruments
You mean, like, swaps?
It get's really deeply abstracted and way off the track of supply and demand when you start treating currencies like there is a bunch of economic activity underlying their movement and swapping when it's nothing more than straight up future swaps that may or may not have economic activity following it.
IE the only way you have to defend your currency is basically through selling off everyone elses currency and buying up your own. So this is what we are seeing with the euro except that it's not player on player. You got 5 or how many other central banks buying up for one currency. In a sense it's like a blood transfusion. You're replacing thier euro blood with american dollar and yen and yuang and aus blood.
Could the EU and Fed Interventions be longer lasting if they used Synthetic Financial Instruments to Intervene so that they could get the same kind of Leverage that lets say the other Supplemental Liquidity Provider can get? Or are all Central Bank Interventions default "Synthetic?"
they only way they can prop the Euro ...i think..is by devaluing the $...
Jeez they're so subtle...I mean don't make anyone nervous or anything when you jack up a currency like junkie shooting up heroin.
Cramer says that, with so much bad news priced into the market, Europe better blow up in the next 48 hours or there will be a big relief rally.
Is that the one on CNBC or the one on Seinfeld?
It's gotta be the one on CNBC. The one on Seinfeld is too smart to make such a ridiculous statement.
Tell me you didnt just quote fucking Cramer on ZH, and did so with a serious look on your face.
FAIL !!!!!
Jim Cramer is very funny, and now that he's freaking out a little, he's hilarious. It actually didn't occur to me that anyone here would take it seriously.
Anything that causes Jim Cramer to freak out and feel pain is a good thing in my book.
SCHADENFEUDE, BITCHEZ!
Haha!!! I'm sorry, but not even Cramer is going to change the reality this time around. Retail investors have already been shamed once.
BERLIN, May 20 (Reuters) - The leaders of Germany and France have decided to coordinate their countries' euro support efforts and work together in upcoming summits, Chancellor Angela Merkel's spokesman said in a statement on Thursday. 'They have agreed that Germany and France will coordinate closely with each other at the meeting beginning on May 21 in Brussels,' government spokesman Ulrich Wilhelm said, adding that the decision came after Merkel spoke with French President Nicolas Sarkozy on Thursday. http://www.xe.com/news/2010-05-20%2013:16:00.0/1160325.htm?c=1&t=
From, THE DOELARR: A LEGACY UNMATCHED
First, the doelarr "strength" to continue tightening the trading range of Euro/USD. The move to $1.30 will happen quick, in the next week or two. DXY to trade roughly at 81.5. Gold and silver will continue to make nominal highs against the Euro, as well as push back up to the nominal highs for the doelarr. Then there will be a move down to $1.25 Euro USD with the DXY staying in the 81.5 range. By late May, the pressure from the doelarr will have peaked, as the State budgets of Amererica will once again be addressed. California, will legalizing pot combine with personal investment by Walled Street in Hollywood save your ship?
4.21.10
http://www.zerohedge.com/article/open-thread-reader-not-making-any-payme...
the ECB doesn't prop up its still overvalued currency, especially not when half of europe is in a severe balance sheet recession. Maybe it's the PBoC
Platinum is precious only to GM executives trying to placate the EPA.
Bring out the wonder puddy.
Looks like they took out the stops. Euro almost printed 1.26.
They surely took out MY stops. I sold at .132 pyramiding on 1.29....I left a trailing stop at 1.26 ystrday night. Woke up and saw my stops wiped away.....whoa, this boys wants us to believe they have "cojones". Ok next
Will find a good selling level again.
Jim Cramer says the Euro spiking was due to shorts and says I'm an eediot for shorting puts. Call me an eediot.
For several days I have been warning of EURUSD buying support as detected by my indicators, and this has been confirmed by the recent break out.
The proprietary indicators I use can identify trend changes before they occur.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
I dont understand why you say ECB? It is obviously the Chinese. I have been waiting for this the last 3-5 days. And here it is. Do your homework and you can make money.
This looks wrong. If this was ECB $ intervention then the E/CHF would have weakened. But it did not. It got stronger by a big figure. This looks to me like it was Swiss National Bank. It is a repeat of yesterday.
So there you have it, the Swiss are buying Europe's chocolate.
+1000 Spot on
They could have used dollars. They've got lots of those.
the Euro intervention spike began just after the S&P 500 broke through support (see chart together) followed by 2% Euro/$US rise in 90 minutes, which means this could easily be the Fed printing US dollars and buying Euros that are then flowing into US stocks, since other markets are now closed.
I think this time around you underestimate the capacity they have on the FX...They do not intervene on the Spot but on the options and once all market markers are short Call volatility you are likely to see a huge run-up in everything as the market would take this as a successful intervention...Just go back in April 1995 and look what Bank of Japan did at that time...
I am sure there is still people crying on what happened on that date
I totally called this yesterday afternoon. Go Eurosqueeze. Don't worry, it's temporary.
so i guess nobody blames the chinese for currency manipulation anymore.
the ecb is qe 2.0 by the fed....the fed using cia connections coerced the ecb into qe 2.0....
For several days I warned of EURUSD buying support as detected by my indicators - and this has been confirmed by the recent Euro break out.
The proprietary indicators I use can identify trend changes before they occur.
http://stockmarket618.wordpress.com
http://www.zerohedge.com/forum/latest-market-outlook-1
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