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EURUSD Cracks To 3-Month Lows Under 1.30

Tyler Durden's picture


Italian stocks have fallen five weeks in a row ending this week down over 3%. The rest of European stocks (including Spain) ended either side of unchanged. A similar picture in Sovereign bonds where Italian 10Y spreads smashed 50bps wider on the week (and Portugal +25bps) while the rest ended +5-10bps only on the week. Today was a weak day overall with the most obvious place to see that weakness the plunge in EURUSD which broke below 1.30 for the first time since early December. Swiss 2Y rates ended negative, EUR-USD basis swaps were leaking worse, and Europe's VIX closed up around 1 vol at 21.5% (well off its highs of the week). Critically, we saw no BTFD appetite in Italian risk assets this week - even with the auction going well - which suggests that Italian banks are as stuffed as they can be and fast money is fleeing.



Very little appetite to scoop up those 'cheap' Italian risk assets...


Charts: Bloomberg


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Fri, 03/01/2013 - 13:07 | 3290684 swissaustrian
swissaustrian's picture

Stocks are still way overvalued

Fri, 03/01/2013 - 13:09 | 3290692 Tsar Pointless
Tsar Pointless's picture


The S&P 500 is about 1500 points too high.

Fri, 03/01/2013 - 13:17 | 3290752 DJ Happy Ending
DJ Happy Ending's picture

It's easy to bust a nut when the euro shits the bed.

Fri, 03/01/2013 - 13:10 | 3290708 Winston Churchill
Winston Churchill's picture

By ten time real value IMO.

Fri, 03/01/2013 - 13:15 | 3290735 Charles Nelson ...
Charles Nelson Reilly's picture

so I should hold off on the 20 shares of GOOG I was going to buy?

Fri, 03/01/2013 - 14:40 | 3291085 Bizaro World
Bizaro World's picture

Find yourself a good young Drone company with US government contracts......solid.

I'll send you a bill,


Fri, 03/01/2013 - 13:15 | 3290736 Cdad
Cdad's picture

The Euro is falling and the dollar is surging as janitors, school aged children of soldiers, and premature babies in incubators prepare to take the brunt of the sequester spending cuts.


Fri, 03/01/2013 - 13:20 | 3290765 Haus-Targaryen
Haus-Targaryen's picture

Enough with the derp.  Its 2% of Federal Expenditures.  We are borring at a 40% rate.  You do the math.

Fri, 03/01/2013 - 14:25 | 3291027 Cdad
Cdad's picture

I guess I'm not sure just how or why you are using derp in your reply.  My comment, of course, was simply made after listening to Presiden Zero's press conference as he addressed the sequester issue and promised the nation that, "I'm not a dictator."

So...perhaps I am missing something here.

Fri, 03/01/2013 - 13:16 | 3290737 Cdad
Cdad's picture


Fri, 03/01/2013 - 13:18 | 3290760 buzzsaw99
buzzsaw99's picture

Put the family fortune into Immobiliare bitchez.

Fri, 03/01/2013 - 13:21 | 3290781 thismarketisrigged
thismarketisrigged's picture

i remember cnbc used to say our  markets go as the euro goes.


euro goes higher, our markets go higher, euro goes lower, our markets go lower.


not anymore. euro goes higher, our markets reach all time highs. euro goes lower, our markets go higher.


Fri, 03/01/2013 - 13:25 | 3290785 mdtrader
mdtrader's picture

All the bad news this week, Italian election, UK slowdown/recession, Europe slowdown, Sterling battered to 1.50, euro sub 1.30, China PMI weak, sequester, and guess what equities are up for the week. I guess none that happened. Even Obama told you it was going to hurt, and equities shrug their shoulders and move up. All it needs now is for the Dow to print a new all time higher and confirm the joke that these markets have become. 

Fri, 03/01/2013 - 13:28 | 3290812 Tsar Pointless
Tsar Pointless's picture

If you think the markets are a joke, then what of the people who expect said markets to reflect real reality?

Fri, 03/01/2013 - 13:25 | 3290796 realtick
realtick's picture

stick w/ the san serif font - it looks so much better on the charts

Fri, 03/01/2013 - 13:31 | 3290816 Mark123
Mark123's picture

The only rationale for stocks going up these days is the Fed creating money to buy US debt.  That is all folks.


I wonder when they call the loan.

Fri, 03/01/2013 - 13:36 | 3290819 Edward Fiatski
Edward Fiatski's picture

Bag 'em & tag 'em.

German Services & Composite PMI over the weekend.

This ride isn't over, not yet. Oh and say hello to cheaper Mercedes - no need to thank me. :)

Fri, 03/01/2013 - 14:03 | 3290939 Edward Fiatski
Edward Fiatski's picture


Fri, 03/01/2013 - 13:46 | 3290875 VonManstein
VonManstein's picture

But but I thought it was the BIS buying EURUSD to drive stocks higher??

Clearly not the case.

Everyone will realise this whole charade with the EUR has been to stop the USD collapsing as holders of USD would prefer a “stronger” one for a little longer so they can get out gradually without getting destroyed and purchase assets cheaper.

No mention from Tylers of USD up SPX up?

I wonder what will be the topic here when USD and SPX begin a nosedive together.

Europe (Germany) is much more sophisticated than the populist plebeians like Santelli realise and will be a main player in the future, providing advanced engineered products and bridging the ASEAN SHCO blocs to the resources of Africa and what’s left of the US (which will be a hollowed out shell owned and run by foreigners)

Fri, 03/01/2013 - 14:26 | 3291033 orangegeek
orangegeek's picture

Euro fell almost 4% in February.  Wave 3 down.

Wed, 03/06/2013 - 16:16 | 3305898 Rattling Bones
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Wed, 03/06/2013 - 16:16 | 3305901 Rattling Bones
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Wed, 03/06/2013 - 16:17 | 3305907 Rattling Bones
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