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EUR Soars Despite Draghi's "Weak, Fragile Recovery" Jawboning

Submitted by Tyler Durden on 10/02/2013 09:35 -0400

EURUSD is at 8 month highs, having broken above 1.36 for the first time since Feb 4th. This is a 100 pip ramp from the start of Draghi's press conference as he offered little or no hope for imminent policy actions to weaken what has already become an earnings-impacting strength in the region's currency. Whether this knee-jerk is algo-driven reaction to "no news is good news" or market participants actually pressing the EUR higher on a lack of policy action in order to force Draghi's liquidity-providing hand down the line is unknown, but for now, we await the Q3 earnings data from European entities to see if they justify the near-record high stock prices being atrtributed.

In summary:

Credit flows are weak - but that's a lagging factor apparently
Fragmentation remains - but banking resolution will fix that
EUR is high - we don't comment on FX
LTRO - maybe if needed
Countries need to reform quickly and ignore the exuberance in the markets as any indicator of no need to reform
"weak fragile recovery"
no inflation

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Wed, 10/02/2013 - 09:40 | 4013454 Jim in MN

Let's get physical, physical,

Let's get into physical

hmm hmm hmmm (humming merrily)

Wed, 10/02/2013 - 09:44 | 4013468 Alpha Dog Food

Watching cartoons is marginally better than this comedy.

My favourite here is 'Whatever Happened To The Occupy Movement'

http://www.youtube.com/user/mrjosephmorgan/videos

Wed, 10/02/2013 - 09:48 | 4013477 DaddyO

SPAMMER!!!!!!!!!!!!!!!!!!!!!!!!!!

DaddyO

Wed, 10/02/2013 - 09:40 | 4013460 venturen

Our printer is bigger than your printer!

Wed, 10/02/2013 - 10:00 | 4013514 Sudden Debt

MAY BE SO BUT I HAVE A LIFETIME SUPPLY OF TONERS!!

Wed, 10/02/2013 - 09:41 | 4013461 Colonel Walter ...

Can't Draghi talk to the Bernank? He knows how to fix this real quick.

Wed, 10/02/2013 - 09:42 | 4013462 Alpha Dog Food

Watching cartoons is marginally better than this comedy.

My favourite here is 'Whatever Happened To The Occupy Movement'

http://www.youtube.com/user/mrjosephmorgan/videos

Wed, 10/02/2013 - 09:43 | 4013465 Save_America1st

and the USD Pig is sub 80 and falling at 79.796 right now.

POS overblown overhyped overprinted and overly destroyed hunk of garbage.

BTFD and keep stacking Ag and Au folks!!!

Wed, 10/02/2013 - 09:46 | 4013472 SheepDog-One

Somebody said somethin! That's gotta be GOOD NEWS!

YAY!

As long as we can just keep people sayin stuff, it's all good we GOT this shit!

Wed, 10/02/2013 - 09:55 | 4013488 crakinshot

Just imagine a cross-eyed, hickup-giggling man and it makes complete sense.

Wed, 10/02/2013 - 10:08 | 4013529 luckylongshot

This was so inevitable that it hardly ranks as news. Take two currencies, one can print as much as it likes, the other cannot. Now figure out which is likely to get stronger....hardly rocket science.

Wed, 10/02/2013 - 10:15 | 4013549 LawsofPhysics

Yes, now about those German exports...

Please, there are no "markets" in the E.U. or otherwise. It's a fiat world.

Wed, 10/02/2013 - 10:16 | 4013559 orangegeek

Euro resistance near 1.37

http://bullandbearmash.com/chart/euro-daily-shows-small-bodies-long-uppe...

And as the Euro climbs, the USD tanks.

Wed, 10/02/2013 - 14:57 | 4014899 starman

ramp that shit till it breaks yoy fucking centra banksters!

EUR Soars Despite Draghi's "Weak, Fragile Recovery" Jawboning

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