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EUR Slumps Most Since July

Tyler Durden's picture




 

It would appear sentiment is shifting a little and the BoJ may not get it all their way. While Draghi did his best to avoid explicitly getting into 'Currency War' discussions, recent concerns by Hollande and the ECB Head's 'deflation fears' have been enough to crater EURUSD. The last four days have seen EURUSD drop by the most in almost seven months and EURJPY start to drop significantly with the biggest 2-day drop in seven months.

4-day drop in EURUSD largest since July...

2-day drop in EURJPY largest since July...

 

Charts: Bloomberg

 

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Thu, 02/07/2013 - 12:00 | 3223089 Rip van Wrinkle
Rip van Wrinkle's picture

Get to work, Mr Bernanke.

Thu, 02/07/2013 - 12:03 | 3223100 Say What Again
Say What Again's picture

The bitches on CNBC are all pissed off because they're not invited to Simon's dinner party. 

Now THIS is riveting TV! 

I never thought I would say this, but CNBC is starting to get entertaining...

WACK!!! -- Someone just slapped some sense into me. 
That was a close call. 
I feel much better now.

Thu, 02/07/2013 - 12:09 | 3223135 AlaricBalth
AlaricBalth's picture

"...did you ever hear the philosophy that once a man admits that he's wrong that he is immediately forgiven for all wrongdoings? Have you ever heard that? " Vincent Vega

Thu, 02/07/2013 - 12:02 | 3223102 trav777
trav777's picture

ludicrous speed on those printers...

Thu, 02/07/2013 - 12:07 | 3223118 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Soon Bernanke will be doing $100B/mo.

Thu, 02/07/2013 - 12:13 | 3223154 HelluvaEngineer
HelluvaEngineer's picture

Nah.  The key is that you need to double it every time.

Thu, 02/07/2013 - 12:18 | 3223173 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bernanke wants to give you just the tip, k? Shhh....it's just the tip.

Thu, 02/07/2013 - 12:13 | 3223155 Rip van Wrinkle
Rip van Wrinkle's picture

Make that $100B/day and I'd believe you.

Thu, 02/07/2013 - 12:16 | 3223162 AllThatGlitters
AllThatGlitters's picture

So the Euro plummets, taking gold and silver down with it.

Yet, Gold and Silver just bounced hard and fast:

http://www.pmbull.com/silver-price/

Why? Expectations of even more printing?

Is this the turning point for the precious metals?  Is this confirmation that we are truly in a full-blown currency war-driven race to zero now?

 

Thu, 02/07/2013 - 12:28 | 3223191 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I was going to ask what confirmation was needed and who doubts that before remembering 99/100 investors are idiots.

Thu, 02/07/2013 - 12:09 | 3223110 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

But this is a good thing. It is the goal of monetary policy to devalue the currency so as to increase exports. That is what is taught from every economic text book in every economics class by every economics professor anyways.

Thu, 02/07/2013 - 12:14 | 3223157 Conman
Conman's picture

Catch 22 weak euro will drive up bond yeilds. No bueno. They are foooked. Kick the can is the measure of the decade. let the next gen deal with it , keep the belgium catering flowing though.

Thu, 02/07/2013 - 12:34 | 3223206 eclectic syncretist
eclectic syncretist's picture

And if all the central banks QE simultaneously they will devalue against hard assets, but not against other currencies, with the end result that money will become worthless and the economy will not be stimulated.  This is where they are taking us right now, the bunch of dumbfucks!

Thu, 02/07/2013 - 12:06 | 3223115 malikai
malikai's picture

Funny move on the EURUSD cross.

Interesting how it has affected gold: https://www.quantsig.net/live.html

Others: http://blog.quantsig.net/2013/02/07/todays-action-3/

Thu, 02/07/2013 - 12:07 | 3223120 I need more cowbell
I need more cowbell's picture

It's like some weird dream beauty contest, where the evil pageant director continues to pour ugly papier-mache droppings on the only good-looking gals, Goldie and Silvia, and trying to re-direct the judges attention back to increasingly ugly contestants.

Thu, 02/07/2013 - 12:07 | 3223123 youngman
youngman's picture

This will become a weekly event...then change to a daily event...then go full Monty to an hourly event as the countries go to the wall on their curriencies

Thu, 02/07/2013 - 12:09 | 3223133 Grand Supercycle
Grand Supercycle's picture

Wile E. Coyote sell off awaits...

SP500 daily chart choppy downtrend commencing.

http://trader618.com

Thu, 02/07/2013 - 12:10 | 3223136 HoaX
HoaX's picture

Anyone read the FT article about S&P and the Eurozone two days ago?

http://blogs.ft.com/brusselsblog/2013/02/are-sp-and-eu-headed-for-eurozo...?

(you do need to log in to read it I´m afraid)

Some quotes:

But what happens when S&P starts pointing out that some of the most criticised eurozone policies – the austerity measures aimed at forcing internal devaluations in struggling peripheral countries – may be working? The silence thus far has been deafening.

....

Our results confirm that peripheral European economies are adjusting externally with speed. What’s more, with the significant exception of Greece, exports are leading this adjustment, while unit labour costs are falling back to more competitive levels…. For 2013, we forecast that Spain, Portugal and Ireland will operate outright current account surpluses, potentially enabling them to post an earlier recovery of GDP than we had previously anticipated, external demand permitting.

...

First, [Spanish] exports have grown by 19 per cent since 2008, “a particularly strong performance for such a large country”. The export boom has led to the second positive sign, a “rapid narrowing” of Spain’s current account deficit; in July, August and October, Madrid actually ran the first monthly surpluses in 14 years. Lastly, S&P noted an “accelerating decline” in unit labour costs.

...

Still, when previously doom-and-gloom rating agencies begin to sound positive, it’s worth taking note.

Maybe another reason for the US to sue them into oblivion?

Thu, 02/07/2013 - 12:12 | 3223150 Dan Conway
Dan Conway's picture

Why do they bother to compare worthless currencies to other worthless currencies?

Thu, 02/07/2013 - 12:14 | 3223159 LongSoupLine
LongSoupLine's picture

The fucking currency virus is eating itself now.

 

 

Fuck you Bernanke.  Get ready for fucking critical mass up your stinking ponzi Keynesian asshole you fuck.

Thu, 02/07/2013 - 12:16 | 3223164 Joe Davola
Joe Davola's picture

Chinese navy targets their ships, Russians fly fighters over, now this - I tell ya, they get no respect.

Thu, 02/07/2013 - 12:23 | 3223182 Al Huxley
Al Huxley's picture

Guess the BOJ's going to have step up their game a little if they want to keep their trend intact.

Thu, 02/07/2013 - 12:35 | 3223210 rubearish10
rubearish10's picture

I going in to BTFD, becasue that's the thing to do.

Thu, 02/07/2013 - 13:31 | 3223368 HoaX
HoaX's picture

Don´t forget to buy some Italian bonds as well.

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