EUR Opens Lower As Bailout Disenchantment Returns

Tyler Durden's picture

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maxmad's picture

Collapse on, bitchez!

Smithovsky's picture

for fuck's sake, it opened a measly 6 pips lower

maxmad's picture

But no China to the rescue.... All last weeks gains to be given back

Mr Lennon Hendrix's picture

EUR/USD to retrace to $1.34

Gief Gold Plox's picture

Do you think that would also retrace gold back to 1600's?

LowProfile's picture

Perhaps lower.

Think:  Who does it benefit for us to have:

A) Extreme volatility

B) People scared to own & hold gold?

Smithovsky's picture

ummm, people long VIX and short GC?  

;)

Mr Lennon Hendrix's picture

But it isn't just a matter of 1:1 EUR/USD.  The Dollar has oil and silver as head winds.  Gold will get caught in the storm, but the Central Banks will continue to leverage it to fund the Fiat Ponzi.  It is a matter of timing in the short run, but in the long run all fiat will fail. 

LowProfile's picture

Agree.

I just think gold will go both much lower before it goes much, much higher than anybody dreams.

Sad to see some people voted me down.  Guess they can't stomach even a little drawdown.

GeneMarchbanks's picture

'I just think gold will go both much lower before it goes much, much higher than anybody dreams.'

Care to put your puts where your mouth is? I mean, since the next big move is down. Thought so.

STFU

Western's picture

Why don't you  shut the fuck up. That would be a stupid trade, it's safer to just accumulate phyzz on the way down and up. idjit

Eally Ucked's picture

isn't it obvious that they agreed on certain limits for currencies to fluctuate?
It's been like that for 3 years already. Just wait for Euro to hit 1.3 and you will get printing news from US and we get new cycle started.

Mr Lennon Hendrix's picture

Gold will get caught up in the shitstorm.  It will probably move to the mid $1600s this week.  Silver will test $33.  Oil will test $85.

Saxxon's picture

I am short and SAF hope so . . . 

FinHits's picture

I agree. ZeroHedge seems to push the wrong trade: EURUSD is not going to collapse as long as ECB won't print money (not in the cards for at least 2011). In fact, Euro could well strengthen, making the Eurozone life very painful, as the cost competitiveness is weak when the rest of the world prints freely (UK and US, and by currency pairing also a bunch of other countries such as China).

The Euro strenght, not weakness, is the true failure of the Eurozone.

Tyler Durden's picture

Once again, actually reading articles, instead of making broad sweeping, and wrong, generalizations, is fundamental:

Citi On Whether Europe Can Ruin The World; Or How To Use An Insolvent Continent As An Excuse For Global Printing

Then again, anything said with conviction, does sound convincing.

FinHits's picture

I did read the article. It concluded that "Policymakers in the US, UK and elsewhere are using the euro crisis as cover to ease policy"

Now, answer me, what happens to Euro when all those other policymakers print money, but ECB doesn't?

Smithovsky's picture

Be cool, Tyler(s), don't ruin your mystique.  

Tyler Durden's picture

Will that be the ECB before or after the Eurozone falls apart? And will that be based on a market pricing in a 50 bps cut by the pre-collapse ECB in December? Lastly, have French liquidating banks stopped repatriating EURs?

FinHits's picture

Looks like I am making friends... I agree that on a long enough timeline, the survival rate for euro drops to zero. I do hope Euro breaks up to national currencies.

1) If Greek Bailout II goes through with -50% Private Sector cut, that is quite deflationary measure: Eurozone gets tens of billions Euro bonds out the system, so even less Euros in the circulation. Ought to strengthen Euro, I guess.

2) I never understood that argument about Euro repatriation, so cannot comment on that. I guess you sell USD assets to buy Euro to do that. What does that do again to currency rate?

GeneMarchbanks's picture

It is possible that European companies are moving their overseas $ into €(repatriation) but that only suggests an acceleration in the currency wars. From a game theory perspective, it really would surprise me if the Europeans are telling China to buy Euros or they(Europe) are going to start dumping the $.

Ghordius's picture

agree on game theory - note how the Japanese reacted when China started to buy their bonds

foreigners holding your currency bons weakens your sovereign debt position

GeneMarchbanks's picture

'foreigners holding your currency bons weakens your sovereign debt position'  

Absolutely. To an extent you are at the mercy of your creditors. What's the one currency all sovereigns in the world are loaded up on?

malikai's picture

Gold. True sovereigns, that is.

FinHits's picture

Weakens position but could stregthen currency (which is bad for the economy in currency war world we live in)

disabledvet's picture

and Prague wants to have a vote on "getting out." Spain's truly the "big one." There's nothing to prevent that country from just leaving. Their banking sytstem seems to be okay. The rest of Europe wants to "shove these policies down Spain's throat?" REALLY? Well...say hello to the Anglo-Saxon dog! well...he's more of a puppy, really. still...he has potential. "he hunts" as they say. Needless to say Italy's banking system is in complete disarray...

St. Deluise's picture

It means you should repeatedly attempt to pick a top in the euro because like, man Europe is a mess and stuff and may print eventually so might as well start shorting now.

And if you're already short, STAY SHORT! Annnnyyy day now... yep, any day now. OOH eur/usd opened down maybe this is it double down!!

Mr Lennon Hendrix's picture

You and every other retired, fixed income, grandma think the Euro is going to collapse.  What if Greece pulls out and goes to the Drachma?  The Drachma would be the weakest of all currencie, and the Euro would strengthen due to alieviating itself from a country with a huge debt/gdp. 

In the long run the EUR/USD will continue to seesaw, and the only benefit will be real assets.

sabra1's picture

greece's big sister italy would take over! isn't that so?

St. Deluise's picture

I know what I wrote is stupid enough to fly as a normal comment around here, but be sure it was heavy on the sarcasm.

GeneMarchbanks's picture

Just go long EUR and have smile and a STFU...

colfaxcap's picture

Dont worry. the headline grabbed some people..then reality sets in when you actually look at the bloomberg and see that 6 pips is laughable,..LOL, but, those scary headlines here grabbed a few readers im sure

SheepDog-One's picture

I agree its not much of a move lower, but who cares its all just BS anyway. Until the entire scam falls apart, its just more pump and dump stocks, manipulate currencies and metals. 

There sits the Euro, with everything thats gone on all year up till now with a collapsed Europe and news that China isnt stepping up to help, still just sits at 1.41, USD at 76....nothings changed and all is obviously well!

Problem is, suddenly it wont be, someones got to pay here and pay up big.

GeneMarchbanks's picture

Let the rumor-off begin!

peekcrackers's picture

where is the next insulin shot coming from.

SheepDog-One's picture

Insulin? Thats pure Bolivian Hopium!

xcehn's picture

Time to soak some easy money off last week's crop of 'investors.'

Durchbruch's picture

In a recent interview Soros was explaining that the euro could have a surprising force due to the liquidity crisis with european banks halting credit to emerging markets (Soros said european banks lend more than all the other ones to emerging countries). I don't know whether this is one of the reasons of Eur resilience or not. If true this could continue until their needs of money lasts.

Durchbruch's picture

this is Soros' interview I was talking about:

http://youtu.be/rhlOqO-HeQs

disabledvet's picture

absolutely. "this is funding currency." it's BIG. "follow the yields." the ECB has already told the world: they will blow up all their countries to have that euro. Who are we to argue with that? Can't wait to see the MF Global "rescue plan."

sabra1's picture

why would anyone listen to a guy who's got front row center seats in hell!

malikai's picture

Bailout rumor fatigue sets in..

long_and_short's picture

serioulsy, headlines need to be subject to edit

 

9 pips as per graph is hardly a headline worth noting.  Hit me that headline when we open lower 200 pips.

losing credibility here, and those who snort these types of healdines like free coke off some whores asshole, WAKE UP !!!

kloot's picture

did it not open lower? saved me the time of checking another site for the open. 

Tyler Durden's picture

Would this headline satisfy: "EUR opens higher, contrary to reality"