EURUSD Crashes To 1.06 Handle - 7-Month Lows

It appears the stop sbelow yesterday's lows (following The ECB's jawboning of "big cuts" in rates) have been run, sparking a 40 pip waterfall to a 1.06 handle in EURUSD (and there are more ECB speakers to come). These are 7-month lows in EURUSD and are pressing The USD Index to break April's highs.

Charts: Bloomberg

Comments

[achmachat]

This is just the ECB making sure that the Fed doesn't even think about the "R" word!

[Haus-Targaryen]

Come on Mr. Yellen -- RAISE THOSE RATES!  Get this shit inverted. 

[buzzsaw99]

sham a lama ding dong bitchez

[Omen IV]

Every million refugees yields 5 cents lower Euro

[mijev]

Fiat currencies always confuse the shit out of me but the chinese probably don't like the USD getting stronger because the yuan is pegged to it and at the same time, a weaker Euro makes them pissed off because the EU is probably now their biggest trading partner. So they want to depeg from the USD and weaken the Yuan against the EUR and USD but they know that will hurt the USD and they still have a shitload of treasuries they can't sell without negative implications. Talk about a tangled clusterfuck web of lies.

[Chad_the_short_...]

If the US and China go to ww3 against each other how will there be ANY trading between the two countries?

[Fish Gone Bad]

Probably not anything that might involve Glencore.

[THE DORK OF CORK]

Activity (Gdp) will rise further in Ireland as a result but people will get poorer

If the function of production is not consumption then what is? 

Concentration perhaps? 

[THE DORK OF CORK]

Huge rise in tourists this year as a result of stronger $£,  cheaper Kerosene and political instability elsewhere...

But so much energy is wasted in this extreme mercantalism.. 

[inosent]

'crashing' is a little exaggerated. Euro is 65 bps lower. wow. 765 bps is wOW, that puts us at 1/1, but 2000 bps - in one day, now that is a crash, and puts us at new record lows for Euro. With EZ QE and all this talk of rate hikes for the USD, down for the month, down for the quarter, approaching contract lows, and lows for the year, this late in the year, why buy? Ar the prices *that* good? I bought lots of Euro earlier this year 105, 106, 107, 108, 109 over and over and over. then it blew up to 111. then I lost interest.

of course, if the market gets a leg kicked out from underneath it, and NOV NFP comes out soft, with a downward revision to OCT NFP as reported early next month, then rate hike talk flys out the window - again.

getting long here is worth 100 bps i guess, but for all i know it could take 4-8 months to get it. The most conservative play is to wait for new contract lows, and sniff around for longs then. the danger there is the old low is *8* months old, and there can be a lot of longs running for cover, plus some aggressive shorts that start piling on to bankrupt any stubborn longs, and that means a break to 100, maybe even under 100, and that means waiting for a paradigm shift can take a long time for longs.

a better trader has the stones to short like this (with stops of course). i just get suspicious, and as it usually happens, for reasons you never can figure out, when prices start drifting lower, explosive buying can happen, so i like to take the lazy trade and not worry about getting stopped out

[THE DORK OF CORK]

Austerity can be defined as the rationing process required to transfer surplus energy to the consumer war economy.

It has been extreme in Ireland since the beginning of the euro project.

You witness a inversion of natural costs 

Domestic energy light local production / consumption becomes unaffordable as a result of the inherent dynamics of usury and its ability to add costs to all life

Then subsequently you get a venting of excess energy via the car and airline business

ble.