EUR Opens Lower As Bailout Disenchantment Returns

Tyler Durden's picture

Your rating: None

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Sun, 10/30/2011 - 14:26 | 1826470 maxmad
maxmad's picture

Collapse on, bitchez!

Sun, 10/30/2011 - 14:29 | 1826474 Smithovsky
Smithovsky's picture

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

Sun, 10/30/2011 - 14:30 | 1826477 maxmad
maxmad's picture

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

Sun, 10/30/2011 - 14:34 | 1826489 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

EUR/USD to retrace to $1.34

Sun, 10/30/2011 - 15:13 | 1826582 Gief Gold Plox
Gief Gold Plox's picture

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

Sun, 10/30/2011 - 15:23 | 1826605 LowProfile
LowProfile's picture

Perhaps lower.

Think:  Who does it benefit for us to have:

A) Extreme volatility

B) People scared to own & hold gold?

Sun, 10/30/2011 - 15:37 | 1826617 Smithovsky
Smithovsky's picture

ummm, people long VIX and short GC?  


Mon, 10/31/2011 - 01:03 | 1827602 Raphio
Raphio's picture

I bought heavily into VIX 2x ETFs on Friday -

Lookin good right about now!

Sun, 10/30/2011 - 15:34 | 1826625 Mr Lennon Hendrix
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. 

Sun, 10/30/2011 - 16:55 | 1826743 LowProfile
LowProfile's picture


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.

Sun, 10/30/2011 - 17:00 | 1826750 GeneMarchbanks
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.


Sun, 10/30/2011 - 22:41 | 1827360 Western
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

Mon, 10/31/2011 - 03:24 | 1827361 Western
Western's picture


Sun, 10/30/2011 - 16:58 | 1826747 Eally Ucked
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.

Sun, 10/30/2011 - 16:07 | 1826614 Mr Lennon Hendrix
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.

Sun, 10/30/2011 - 17:03 | 1826758 Saxxon
Saxxon's picture

I am short and SAF hope so . . . 

Sun, 10/30/2011 - 14:43 | 1826504 FinHits
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.

Sun, 10/30/2011 - 14:55 | 1826531 Tyler Durden
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.

Sun, 10/30/2011 - 15:07 | 1826566 FinHits
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?

Sun, 10/30/2011 - 15:10 | 1826577 Smithovsky
Smithovsky's picture

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

Sun, 10/30/2011 - 15:14 | 1826589 slewie the pi-rat
slewie the pi-rat's picture

it needs to be supported by the swiss franc?

Elvis Costello Live - Welcome to the Working Week - YouTube

Sun, 10/30/2011 - 15:15 | 1826590 Tyler Durden
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?

Sun, 10/30/2011 - 16:20 | 1826700 FinHits
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?

Sun, 10/30/2011 - 16:52 | 1826740 GeneMarchbanks
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 $.

Sun, 10/30/2011 - 17:01 | 1826752 Ghordius
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

Sun, 10/30/2011 - 17:11 | 1826767 GeneMarchbanks
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?

Sun, 10/30/2011 - 17:14 | 1826772 malikai
malikai's picture

Gold. True sovereigns, that is.

Mon, 10/31/2011 - 15:08 | 1829376 FinHits
FinHits's picture

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

Sun, 10/30/2011 - 16:21 | 1826702 disabledvet
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...

Sun, 10/30/2011 - 15:27 | 1826611 St. Deluise
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!!

Sun, 10/30/2011 - 15:38 | 1826630 Mr Lennon Hendrix
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.

Sun, 10/30/2011 - 16:05 | 1826674 sabra1
sabra1's picture

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

Sun, 10/30/2011 - 16:06 | 1826678 St. Deluise
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.

Sun, 10/30/2011 - 15:07 | 1826567 GeneMarchbanks
GeneMarchbanks's picture

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

Sun, 10/30/2011 - 17:09 | 1826764 colfaxcap
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

Sun, 10/30/2011 - 17:24 | 1826785 SheepDog-One
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.

Sun, 10/30/2011 - 14:26 | 1826471 GeneMarchbanks
GeneMarchbanks's picture

Let the rumor-off begin!

Sun, 10/30/2011 - 14:48 | 1826514 peekcrackers
peekcrackers's picture

where is the next insulin shot coming from.

Sun, 10/30/2011 - 17:12 | 1826769 SheepDog-One
SheepDog-One's picture

Insulin? Thats pure Bolivian Hopium!

Sun, 10/30/2011 - 14:29 | 1826475 xcehn
xcehn's picture

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

Sun, 10/30/2011 - 14:32 | 1826482 Durchbruch
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.

Sun, 10/30/2011 - 14:35 | 1826493 Durchbruch
Durchbruch's picture

this is Soros' interview I was talking about:

Sun, 10/30/2011 - 14:45 | 1826507 disabledvet
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."

Sun, 10/30/2011 - 14:46 | 1826509 broke433
broke433's picture

Soros is genius

Sun, 10/30/2011 - 16:07 | 1826681 sabra1
sabra1's picture

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

Sun, 10/30/2011 - 14:33 | 1826483 malikai
malikai's picture

Bailout rumor fatigue sets in..

Sun, 10/30/2011 - 14:33 | 1826487 long_and_short
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 !!!

Sun, 10/30/2011 - 15:03 | 1826555 kloot
kloot's picture

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

Sun, 10/30/2011 - 15:03 | 1826559 Tyler Durden
Tyler Durden's picture

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

Do NOT follow this link or you will be banned from the site!