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EUR Plunges As Markets Open

Tyler Durden's picture





 

UPDATE: EURJPY -150pips

Between FX carry-based risk-off from the looming government shutdown in the US and the debacle that has become Italian politics, the EUR is getting pummeled out of the gate. EURJPY is down 100 pips - well below Un-Taper levels from 2 weeks ago and EURUSD is fading fast (down almost 50 pips). The EURJPY move implies a notably lower open for S&P futures. We suspect, given the 28-month highs in EUR net longs, that this drop may get bigger by the time Europe opens...

FX markets pricing JPY carry off and EUR weakness...

 

and ths situation is likely to get worse as EUR Net Longs are at 28-month highs...

 

which does not bode well for S&P futures open...

 

 

Charts: Bloomberg

 


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Sun, 09/29/2013 - 15:12 | Link to Comment Yen Cross
Yen Cross's picture

   Boy, that was a tough call. /sarc  Central bank were already rebalancing their $ shorts, and this just adds fuel to the fire.

Sun, 09/29/2013 - 15:36 | Link to Comment Xibalba
Xibalba's picture

just trying to offset USD weakness due to Congressional ineptitude

Sun, 09/29/2013 - 16:42 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

@ Yen Cross

Maybe more Europeans will start buying gold now...  :)

 

But when the Sellers of physical gold refuse to give theirs up, well, mucha acción!

Sun, 09/29/2013 - 16:52 | Link to Comment RockyRacoon
RockyRacoon's picture

Is it me, or is there just too much concern over this sort of stuff.  Our coins still weigh the same as they did yesterday.  

Oh.... and congrats again!

Sun, 09/29/2013 - 17:41 | Link to Comment DeadFred
DeadFred's picture

Of course there's angst and hand wringing! Who could have ever seen this coming? LOL

Sun, 09/29/2013 - 22:35 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

:thumb up: Rocky!  Thx!

Sun, 09/29/2013 - 17:34 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

¥ vs £ vs € = $ or ??

Sun, 09/29/2013 - 15:15 | Link to Comment infiniti
infiniti's picture

Should be a great couple of weeks for VIX and treasury longs

Sun, 09/29/2013 - 16:33 | Link to Comment Cdad
Cdad's picture

Let's see...we have a government shutdown, to be followed by a debt ceiling debate, both complicated by a potential [almost certain, really] new war in the Middle East.  Also, Obamacare hangs in the balance, which we already know is damaging the weak economy.  

We also have Italy's government collapsing, and the bond market implications, as simultaneously, desperate Euro area banks are forcing bond holders to buy shite and defunct bank shares with their previously money good notes [bail in template].  Also, everyone is about to learn just how deep the shite is at Deutsche Bank. 

In China, the government there is now having to lie on a weekly basis to hide its economic recession, as US manufacturing confirms the recession in this sector.

In Japan...well, the same old clusterflock that has been ongoing for six months plus a four reactor complex gone critical [not that it wasn't before...but now admitted to in the MSM].

Yeah..I'd go long Tesla, LinkedIn, and Netflix, if I were you.

Sun, 09/29/2013 - 16:37 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

No hay ningun problema!

Party on, dudez!

Sun, 09/29/2013 - 17:25 | Link to Comment max2205
max2205's picture

Wall Street will make the House do a mulligan by Wednesday 8:30 am est

Where do I sign up for Obamacareless

Sun, 09/29/2013 - 16:46 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

Japan and China just became net sellers

Sun, 09/29/2013 - 15:14 | Link to Comment sphindog
sphindog's picture

USD parity, here we come!

Sun, 09/29/2013 - 15:59 | Link to Comment Ivanovich
Ivanovich's picture

Yeah, just a little ways to go.  (/sarc)

 

This "plunge" isn't much of a plunge at the moment.

Sun, 09/29/2013 - 15:21 | Link to Comment lolmao500
lolmao500's picture

EUR Net Longs at 28-month highs...

Lulz. A shitload of people went bankrupt today.

Sun, 09/29/2013 - 15:35 | Link to Comment cossack55
cossack55's picture

Only those who deserve to BR.  Then, of course, there are the wise ones.

Sun, 09/29/2013 - 15:34 | Link to Comment WTFUD
WTFUD's picture

Euro Net Longs
What a joke the EC/EU is drowning in a Sea of Piss.
Must remind myself to quit wearing the other half's FishNets.

Sun, 09/29/2013 - 15:51 | Link to Comment Devotional
Devotional's picture

and here is an update of the municipal elections in Portugal - The Socialists took it all and the commies increased their presence.

So, the same pigs that got us into this mess won again. Wow ...

 

Sun, 09/29/2013 - 16:43 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

It is instructive how Socialists win so often.  Makes you wonder how much the electorate, here & there, votes the same scum in...

Sun, 09/29/2013 - 17:26 | Link to Comment Devotional
Devotional's picture

a communist must have thumbs downed the comment.

Sun, 09/29/2013 - 22:38 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

It's dangerous being devotional around here, also dangerous to be a bearing...

Mon, 09/30/2013 - 08:06 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Long time do chen. You mean overbearing?

Sun, 09/29/2013 - 15:57 | Link to Comment NIHILIST CIPHER
NIHILIST CIPHER's picture

FUD                 We are all drowning in same sea of piss. That is evil globalist plan.

Sun, 09/29/2013 - 16:30 | Link to Comment jbvtme
jbvtme's picture

i'm guessing that rising tide will not be floating all boats???

Sun, 09/29/2013 - 16:52 | Link to Comment cossack55
cossack55's picture

The rising rogue wave sinks all boats.

Sun, 09/29/2013 - 16:20 | Link to Comment NDXTrader
NDXTrader's picture

Would you guys just stop it. I love ZH but c'mon. You've been bearish since S&P 666. Do you really think this is the big plunge? It's coming, but not on this. If anything this ensures more QE. I get you guys are trading your own book, but at some point you have to realize that you are losing your readership a lot of money. This is a buying opportunity and a non-event. The time to get scary and short is when Ben/Janet can't hit the print button because of inflation - not before

Sun, 09/29/2013 - 16:33 | Link to Comment NDXTrader
NDXTrader's picture

Down arrow the truth. It's been happening for 1000 points. If this is just a social commentary site then ok. If it has anything to do with the market then check your ledger as a short

Sat, 10/05/2013 - 09:02 | Link to Comment frankthomaswhite59
frankthomaswhite59's picture

delete

Sun, 09/29/2013 - 17:08 | Link to Comment Rick64
Rick64's picture

 One thing I have learned on ZH is that this is not an investment site but more of a long term outlook exposing fraud, manipulation, corruption, and the way things work. I agree with what you're saying as far as this isn't the downfall that everybody is expecting to happen. It is a correction, the euro will continue higher in the long term.  Stock markets in Europe are starting a bull market. Spain +26%, France +15%, Portugal +19.77%, Greece +41%, Ireland +32%, Germany +11.3% year to date. This doesn't mean I believe that the recovery is based in reality, but just like we have had a bull market for 4 yrs. even though it was manipulated it still happened. 

Sun, 09/29/2013 - 18:46 | Link to Comment Money Maker
Money Maker's picture

Yup, your absolutly right.  The time for the big sell off will be in yearly 2016 when the Brazilian real starts to crash and 3rd world country start to have currency problems.  Their inflation will be out of control and the dollar strengthening will be a desastor for global GDP.

The US can control what happens in the US....but its what you cant control outside of the US is whats gonna get us in the end.

Sun, 09/29/2013 - 19:07 | Link to Comment TWSceptic
TWSceptic's picture

not before

 

Unless black swan.

Sun, 09/29/2013 - 16:25 | Link to Comment Quinvarius
Quinvarius's picture

Knowing that the FOREX market is 100% rigged, I can only guess we are trying to send a message about the viability of US paper as we prepare to not pay our interest payments.

Sun, 09/29/2013 - 16:46 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

That is a great point!  Hard to rig an oz of physical Au as long as you can determine that it is real.

Sun, 09/29/2013 - 16:26 | Link to Comment gatorengineer
gatorengineer's picture

Cant see how shutdown isnt dollar negative.... I think I connected too many dots, shutdown BS keeps taper going weakens dollar.....  Unless they havent priced in the shutdown and are just pricing italy and portugal...

 

What part did I miss?

Sun, 09/29/2013 - 16:28 | Link to Comment NDXTrader
NDXTrader's picture

You didn't do anything. If anything this is bullish. No taper until Dec

Sun, 09/29/2013 - 16:38 | Link to Comment NDXTrader
NDXTrader's picture

You've been promised dollar printing literally forever. Even if in nominal terms we stay even then we end up at Dow 20,000 by next spring. You have to ask yourself if you think Yellen will stop making dollars. These non-event scare tactics shake people out for the big boys...nothing more and nothing less. Stocks are priced in DOLLARS

Sun, 09/29/2013 - 17:07 | Link to Comment Pig Circus
Pig Circus's picture

Dow 20,000

Keep upping your leverage you have it all fiqured out just like those clowns on CNBS. Funny I never heard one of them say buy and keep buying the FED will print forever. I only heard them say Summer of Recovery, The Great Rotation and so much other horse shit I can't even begin to repeat all the bullshit.

Never once did they say what actually happened that the econ and employment are for shit but as long as the FED is printing like retards with their asses on fire we will keep going higher.

Sun, 09/29/2013 - 16:58 | Link to Comment Pig Circus
Pig Circus's picture

Poor Euro Peon's not even out of bed yet.

Sun, 09/29/2013 - 17:02 | Link to Comment Pig Circus
Pig Circus's picture

Everyone knows our Gov will never shut down, After Boner caves Euro will still be an over indebted shit hole. Same as us same as the Jap's. It's Beggar Thy Neighbor for all of us until the whole thing goes Boom.

Sun, 09/29/2013 - 17:30 | Link to Comment geno-econ
geno-econ's picture

KA KA BOOM when the unexpected happens and the Fed says it is a Congressional problem. Could happen next week, October but never on a Sunday

Sun, 09/29/2013 - 17:18 | Link to Comment AllWorkedUp
AllWorkedUp's picture

Probably be just be another reason for the boyz to spank gold. It never ends.

Sun, 09/29/2013 - 17:22 | Link to Comment kchrisc
kchrisc's picture

I always have a nice chuckle when the dollar rises against any (fiat) currency.

Looking at the broad picture one can understand that Europe is cooked, but the US will be "extra-crispy."

Sun, 09/29/2013 - 17:50 | Link to Comment alpharack
alpharack's picture

Well, that's just a silly weak eurusd opening. I think eurusd has more room to the upside. Both GBPUSD and EURUSD are still great buys.

Sun, 09/29/2013 - 17:51 | Link to Comment SilverMoney1
SilverMoney1's picture

EURJPY is a strong buy.

Sun, 09/29/2013 - 18:46 | Link to Comment Binko
Binko's picture

I worked in Saudi Arabia for a year when I was younger. That place should seriously not even exist as a nation. A few million of the most repulsive and mentally unstable people I've ever encountered lord over 10 million or more foreign workers. Who decided to take a vast swatch of sand and oil and turn it over to one clan of primitive camel herders?

Mon, 09/30/2013 - 00:42 | Link to Comment Nick Jihad
Nick Jihad's picture

The British.  Oh, was that rhetorical? nevermind then

Sun, 09/29/2013 - 22:31 | Link to Comment Herdee
Herdee's picture

The Euro would be lucky to work at parity.eom

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