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ECB Smacks Down Euro Again, Says EUR Strength Will Hurt Recovery In Crisis States

Tyler Durden's picture





 

Just like yesterday, it was some anonymous Yen vigilante smacking down the USDJPY saying the initial G-7 statement was misinterpreted, so today it is the ECB's turn, which just smacked down the EUR royally, for the second time in a week following last week's Mario Draghi comments, when it said that:

  • THE ECB IS WORRIED EURO STRENGTH WILL HURT RECOVERY IN CRISIS STATES

And just like yesterday the refutation came via shady pathways, i.e., an anonymous leak in D.C., so today, apparently the information comes from that venerable ECB conduit: Bild. What can one say - all is fair in central bank love and currency war.

EURUSD once again slides first, asks questions next:

Unless the ECB formally denies this Bild report, it is safe to say that for Draghi 1.3500 is the key resistance level, above which GETCO's FX algos will have to find other USD carry pairs to fund their market levitation.

 


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Wed, 02/13/2013 - 08:58 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

A currency police action.

Wed, 02/13/2013 - 09:04 | Link to Comment King_of_simpletons
King_of_simpletons's picture

No US stock market rally without a strong EURO. Bummer ! :-(

 

The USD has to be weak for the high manipulated equities market to keep up momentum and suck in new money.

Wed, 02/13/2013 - 09:14 | Link to Comment Popo
Popo's picture

Now that the currency war is officially on, the timer has officially started on the coming hot war. Under a decade, yes. But maybe sooner.

Shore your shit up folks. The hourglass has now been flipped. Where do you want to be and how do you want to be positioned when the shooting starts and the bombs start falling? War is coming. It's what always comes "next" after currency & trade wars heat up.

Wed, 02/13/2013 - 09:23 | Link to Comment ArkansasAngie
ArkansasAngie's picture

But ... but ... a week dollar means the Germany export engine sputters. Can't have that
But ... but ... a strong dollar means America's exports drop.

Gosh ... what's a central banker to do? Why the answer is clear. You seesaw it. Who cares if the economy simply sucks for everybody but the elite.

I bet this goes on for a long time.

Wed, 02/13/2013 - 13:24 | Link to Comment VonManstein
VonManstein's picture

A favour to delay the unstopable collapse of USD.. i mean cmon.. its so obvious. It cant be stopped

Wed, 02/13/2013 - 08:59 | Link to Comment TotalCarp
TotalCarp's picture

At what point does bernank start to sweat?

Wed, 02/13/2013 - 09:08 | Link to Comment BandGap
BandGap's picture

I guess when he realizes nationalism is going to rear it's ugly head and human nature is going to rule.

What? Don't politicians in other countries have to buy votes too? 

Wed, 02/13/2013 - 09:11 | Link to Comment DavidC
DavidC's picture

Judging by the tremor in his voice when he's talking I would guess he already is.

DavidC

Wed, 02/13/2013 - 09:20 | Link to Comment Sudden Debt
Sudden Debt's picture

at what point did you think he actually gave a shit?

Wed, 02/13/2013 - 08:59 | Link to Comment BandGap
BandGap's picture

Why am I seeing 10 cowboys trying to herd a million cats? 

Wed, 02/13/2013 - 09:06 | Link to Comment rsnoble
rsnoble's picture

Oh boy here we go with more concerns about the 'recovery'. LMAO.  These fuckers must've all been assistants in Dr. Frankensteins lab.

Wed, 02/13/2013 - 09:07 | Link to Comment EscapeKey
EscapeKey's picture

Large-scale manipulation is ok, it's small-scale which is prosecuted.

Wed, 02/13/2013 - 09:13 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

A heathly mix of Corzine and Galt.

 

Steal big.....and get lost.

Wed, 02/13/2013 - 09:10 | Link to Comment Sudden Debt
Sudden Debt's picture

OKAY!!! WE'LL DEVALUE THE EURO TODAY!!

NOBODY ELSE DEVALUES THEIR CURRENCY TODAY OKAY?!

let's play this game fair and square...

YOU HEARD ME RIGHT BERNANKE?! YOU WAIT OFF TODAY!!!

bad enought that those japs beat us already...

Wed, 02/13/2013 - 09:43 | Link to Comment holdbuysell
holdbuysell's picture

Bingo. Brodsky of QBAMCO said it best: these are coordinated and rotating currency devaluations. We very well could be at a USD Index of 80 in five years but a loaf of bread will cost $8.

CBs are just going to keep ratcheting down the currencies so no one notices relative to each other. It's only when people look at the currencies relative to real goods that the 'aha' moment will occur.

Unless, something breaks, of course. But, that could never happen, right? /s

Wed, 02/13/2013 - 09:13 | Link to Comment DavidC
DavidC's picture

Why does the word 'pathetic' keep coming to mind?

DavidC

Wed, 02/13/2013 - 09:25 | Link to Comment falak pema
falak pema's picture

clever guy Draghi; he says to the world : read my lips!

ANd, twice it was the "but, but" phrase at the end of his speech that carried the "sting".

And the sting is pleading in favour of Holande spiel; not the "official" Bundesbank/ Merkel pitch of "strong" Euro.

Subtle guy, "read my lips" is the name of the Oligarchy game as invented by Bush Senior.

MACHIAVELLI would be proud of both of them.

Now that Potus has taken his stance on State of Union and jobs creation/minimum wage AND EU/USA free market zone (this last will be awesome mayhem unleashed on CLub Med, if its rapidly installed), will "read my lips" apply to him as well?

DOes he say ONE thing and DO the opposite? We'll soon find out! 

This chart below, if its true, opened my left eye on the true meaning of his official message : 

Obama Wants Everyone To See One Chart By The End Of The State Of The Union - Business Insider

Nary (withstanding) the ever relevant phrase that rings  a warning bell on the issue of : lies, damn lies and statistics...

Currency wars and commercial hegemony...on neighbours, like during League of Delos...we head to the Peloponnese war ...

Wed, 02/13/2013 - 10:30 | Link to Comment LMLP
LMLP's picture

Falak IF that that chart is true, isn't it just evidence of privatization to the private sector?

http://www.federaltimes.com/article/20121216/ADOP06/312160003/Debt-mess-...

But hey fuck it, it's a nice chart....red to blue thats good right?

Potus's most clear message..  trying to link min wage to inflation is laughable (due to a bollax indexation thx SGS!...) but still a very significant admittance that prices have risen whilst incomes and opportunities haven't......the growing cashless middle class is a huge social issue.....WE HAVE INFLATION AND IT'S A PROBLEM!

 

Thx Big O for the confirmation :-)  Precious Bitchez?

 

PS Peloponnesian nice!


 

Wed, 02/13/2013 - 09:27 | Link to Comment TWSceptic
TWSceptic's picture

Euro down - crisis

Euro up - hurt states

Do they even know what they want?

Wed, 02/13/2013 - 09:52 | Link to Comment mendigo
mendigo's picture

Wait...what crisis states? There are crisis states? What is he talking about?

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