As Sliding EURUSD Takes Out Friday Lows, Market Response To Bailout Is "Concerning"

Tyler Durden's picture

Despite its illiquidity, The FX market has been the first and earliest indicator of how the market is taking the Irish bailout. So far it has been a complete abortion, and after opening in the mid 1.33 in the interbank market, the EURUSD has just touched on 1.3196, and is about to take out Friday support. The vigilantes refuse to go away. In addition to LCH margin hikes on Portugal and Spanish bonds tomorrow which now appears inevitable, we continue to expect that FX margin requirements will be hiked over the next few days across the board. Lastly, expect to hear rumors of secret service chasing any and all bond shorts/CDS longs. The war for the Eurozone's survival is now on in earnest.

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Uncle Remus's picture

Remember, remember the month of November

And the relentless treason and plots

I know of no reason

Why global economic treason

Should ever be forgot

AUD's picture

Gold sliding down too. Looks like Mr Buckler's 'risky' UST's are not quite risky enough eh ZeroHedge!

cyclemadman's picture

I personally am betting on thousands of years of human history vs. pretty printing on paper.

omi's picture

I've said this many times, every country with gold-backed currency went down. It's not the case of paper vs gold, but rather of political diligence so to say. Revolutions suck regardless whether you have gold-backed or fiat currencies.

tmosley's picture

Every country fails.  The only question is whether or not the citizens of that country lose 100% of their purchasing power or not.  Those who had gold did not.

Maintaining a gold standard leads to more stable governments as well.  The Byzantine Empire was a notable example.  In fact, if you look at all of the long lived empires of the world, a gold or silver standard was in effect for all of them.  When they switch to paper, they have at most 80 years until they collapse.

dnarby's picture

There you go again, trotting out these things they call 'facts' again...  Stop doing that, it really screws up the propaganda.

Spitzer's picture

Do you really think a five minute chart is going to change gold's long term trajectory and the dollars long term trajectory ?

Even the dollar bounce in 2008 did not change any long term trends.

AUD's picture

You evidently missed the Privateer article & thus the gist of my post.

RockyRacoon's picture

Can you quote the projected time line on that?  No? 

That's because there wasn't one.  These things take time, and you seem to be fixated on an hourly charting time frame.   Loosen up a little.

It's not the Privateer's statement that has you rattled.  What's the true reason?

Xibalba's picture

Must love China

Wily Wonka's picture

EUR falling and tepid retail sales = BOOMING SPX FUTURES!

It's all manipulated for your pleasure!

HarryWanger's picture

Market here only cares about weekend sales and they were NOT tepid, actually pretty decent. That's why futures are up.

Lucius Cornelius Sulla's picture

Sales may be up a bit, but margins are way down.  As a result, I doubt that retailers are going to be making much, if any progress on earnings.  Besides, how does retail help the USA improve its trade balance and bring unemployment down?

Hedge Jobs's picture

easy to buy christmas presents when you dont pay your mortgage Harry.

John Law Lives's picture

I am growingly convinced that you are not a real person.  You are a robo-drone who is programmed to post messages contrary to the tone of this site.

Good job, robo-drone.  Thanks for the comic relief.

Id fight Gandhi's picture

But double Pomo tomorrow. Sounds like a dirty movie. Like getting screwed from both ends.

westboundnup's picture

It feels like we're in a porno.  Can we call it "The Dirty Thirties Redux?"

Cognitive Dissonance's picture

It feels like we're in a porno.

Don't forget to wear your rubbers........duckie.

FEDbuster's picture

With fluffers and jizz moppers, too!

rubearish10's picture

Yes, a potential stick save forecast for tomorrow but lately, it's (POMO action) playing second fiddle to the "kick the can" muff in Europe!!! WOW! this should be fun!

Cone of Uncertainty's picture

Bernanke is diddling himself to this news.

Gordon Freeman's picture

Man, that is some freaky imagery--my compliments! LOL

Cone of Uncertainty's picture

I must just fire up my Bloomberg Anywhere in order to watch this spectacle in real time.



Wily Wonka's picture

Anyone have a entry point to short CMG?

Id fight Gandhi's picture

Yeah record high Friday.

World falling apart and this is a safe haven.

RoRoTrader's picture

I'd be really fucking concerned too, especially if I knew $20 odd billion Euros of my real money savings/pension fund money was being put up as part of a bank bailout and getting a ZERO fucking rate of return and everyone else in the deal who also happen to be the assholes making it all up out of 'thin air promises' were being paid a whole lot more for a whole lot less.

Bottom line; the Bloomberg so-called Ireland WINs Big spin can't pass the smell test.

In the Irish language that is expressed as 'fuck me'.

CrashisOptimistic's picture

Come morning in Brussels, maybe the ECB will print up some Euros and then sashay on down to the exchange and buy some more with what they printed.

Though it's not clear exporter Germany will want this.

Wily Wonka's picture

What's the end game for this all? World government? Single currency? Socialism?



liberal sodomy's picture

I'm hoping revived Nationalism.

Portugal is on the clock.

Last one out of the euro is a rotten egg.

Time for a fresh maalox delivery to the SNB.

mikla's picture

What's the end game for this all? World government? Single currency? Socialism?

No fair!  You were supposed to open them first!

Mr Lennon Hendrix's picture

Step one, cut a hole in the box, step two, put your junk in that box, step 3, open the box......its a dick in a box.

Spitzer's picture

The end of the Dollar/Fed

Its a long story.....

johny2's picture

Really how can you be so brainwashed with all this information not to see that there is as much difference between Capitalism and Socialism as between Republicans and Democrats? 

Gordon Freeman's picture

Guess that whole Wikileaks McGuffin didn't do the trick--look out below...

Id fight Gandhi's picture

So that what was in the briefcase in ronin.

Wily Wonka's picture

Liberal S... I hope so too! It seems to me that most Americans don't and can't see what is right in front of them. Does it have to collapse first?

liberal sodomy's picture

Best to go to practice at flea markets now so you won't be too far behind the curve.

Lucius Cornelius Sulla's picture

Most Americans are living paycheck to paycheck with little or no savings so they really don't give a rats ass.

tim73's picture

"The war for the Eurozone's survival is now on in earnest."

HAHAHAHAA! All you guys are doing, is helping the exports of Eurozone. Like last time during Greece crisis. 1.31 is a little bit high, 1.20 would be nice.

snowball777's picture

Be nice, or I'll buy your place and have you evicted.

trav7777's picture

gold, sliding...wants to confirm the H&S?

ruffian's picture

still a long way from neckline 7's........somewhere around 1338...take out 1352 support and then we can begin to consider it.......all the worlds a flame and you think gold will crumble? Just because the least deseased bitch of a currency is rising? Use your head and buy on dips

Ignorance is bliss's picture

I hope Gold and Silver stay down. I get paid in a couple of days, and will convert all that I can into PM. I don't believe in buying a debter currency as a hedge against the storm.

CrashisOptimistic's picture

Any time gold becomes significant, governments will confiscate it, or more effective, declare it to be non property, thus de criminalizing any crowd who wants to break into a house to steal it.  Or any bank that wants to take it from security deposit boxes.

Gold can be erased of any significance any time a government wants to.  That's its great danger.


AUD's picture

Gold can be erased of any significance any time a government wants to

If it could be, it would already have been. There is no danger.

OddFieldIsStrong's picture

Hmm. It had been in the past. Haven't you read history?

Spitzer's picture

It was purchased by the government if you turned it in.

Why not claim your gold was stolen ? and hide it really well

AUD's picture

I'm getting as agitated with some of these responses as Trav77. Gold is still money today fool & it always will be.

Governments may have in the past tried making it 'not money' but they have failed & thus it is still money today.

You have not only not read history you don't even understand the present.

Shameful's picture

Huh I didn't know the US could tell the world gold is illegal. Wonder how they will enforce it. Maybe the Grand Arme that is doing so well in its current adventures can branch out into all countries at the same time?

I know many cannot believe this but the US is not the whole world, and should the US decree gold to be illegal I expect it to spook the dollar market. Besides it's not like Americans hold gold, it's those pesky Asians. So baring a magical military tour I'm not seeing it happen.