EUR Slumps Most Since July

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

Comments

[Rip van Wrinkle]

Get to work, Mr Bernanke.

[Say What Again]

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.

[AlaricBalth]

"...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

[trav777]

ludicrous speed on those printers...

[Mr Lennon Hendrix]

Soon Bernanke will be doing $100B/mo.

[HelluvaEngineer]

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

[Mr Lennon Hendrix]

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

[Rip van Wrinkle]

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

[Dan Conway]

Most printers go up to 10 but Bernankes go to 11!

http://www.bing.com/videos/search?q=spinal+tap+11&mid=F10C8B8F1B2CE9B2CE17F10C8B8F1B2CE9B2CE17&view=detail&FORM=VIRE6

[AllThatGlitters]

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?

[Mr Lennon Hendrix]

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

[Mr Lennon Hendrix]

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.

[Conman]

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.

[eclectic syncretist]

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!

[malikai]

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/

[I need more cowbell]

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.

[youngman]

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

[Grand Supercycle]

Wile E. Coyote sell off awaits...

SP500 daily chart choppy downtrend commencing.

http://trader618.com

[HoaX]

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?

[Dan Conway]

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

[LongSoupLine]

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.

[Joe Davola]

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

[Al Huxley]

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

[rubearish10]

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

[HoaX]

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