Trading signals for Friday 27-01-2012
FOREX-Signals EUR/USD SHORT EUR/GBP SHORT Entry-Limit Sell 1,3180 Entry-Limit Sell 0,8390 Limit BUY 1,3140 Limit BUY 0,8350 Stop BUY 1,3200 Stop BUY 0,8410 USD/JPY [...]
Category: European Markets
The End Of Europe
One of the interesting things about being in Hong Kong is that I get to see the weekend edition of the Financial Times 12 hours early. And the headlines were not all that pleasant. As I promised last week, we will cast our eyes to Europe and ponder what is in store for Europe for the year [...]
If No Trade Reversal Now, Then When?
Europe’s underlying problem is not budget deficits or even unsustainable debt. These are mainly symptoms. The real problem with Europe is the huge divergence in costs between the core and the periphery – in the past decade costs between Germany and some of the peripheral countries have diverged by anywhere from 20% to 40%. This [...]
ECB LTRO Won’t Stop Contagion.
Bond action in the Eurozone has modestly picked up (yields steady or falling) since the ECB’s 3-Year LTRO program – Long Term Refinance Operation. However, European banks still do not trust each other, not even for overnight lending.Instead, banks park all available funds with the ECB, as noted by the Wall Street Journal in Deposits at [...]
European Problems, American Solutions.
Greece has been out of the spotlight for a couple of weeks, which means it’s past due for another market-rattling announcement. And sure enough, today we find out that its economy is shrinking even faster than expected: Greece Apparently Even Worse Off Than Realized, Hitting Euro, StocksThis flew under the radar a little bit because [...]
This Is Europe’s ‘Powerful’ Plan?
Europe’s leaders have convened another summit meeting that will, they promise, put all the break-up speculation to bed once and for all. But the ideas that were floated pre-meeting are, um, logically challenged. Consider this excerpt from a recent Wall Street Journal article: The Pitfalls of Merkozy’s Third Way …Perhaps the markets are simply relieved that [...]
The Merkozy Dog and Pony Show Has Fleas
Within a couple of days German Chancellor Angela Merkel and French President Nicolas Sarkozy will present their “Grand Plan” to save Europe to a formal hearing on EU debt. Their plan is on the death-bed already, but it does not officially die until formal votes in May as noted in Eurozone Treaty Changes to be Finalized [...]
The European Ass Backwards Stimulus Plan.
Please consider the ass backwards Measures to Stimulate Bank Lending in the EMU. The European Central Bank may announce a range of measures tomorrow to stimulate bank lending, said three euro-area officials with knowledge of policy makers’ deliberations. Options on the table include loosening collateral criteria so that institutions have more access to cheap ECB cash and [...]
Time to Bring Out the Howitzers.
It is now common to use the term bazooka when referring the actions of governments and central banks as they try to avert a credit crisis. And this week we saw a coordinated effort by central banks to use their bazookas to head off another 2008-style credit disaster. The market reacted as if the crisis is now [...]
The Light Bulb Moment for the Eurozone.
How many European bankers does it take to change a light bulb? That’s a joke in search of an answer, but EWI’s European analyst Brian Whitmer explained five months ago that the “light bulb moment” was coming – that’s the time when most people would clearly recognize the severity of the European debt crisis. He [...]
Europeans Must Fight Banks Or Accept Debt Serfdom
The European debt Bubble has burst, and the repricing of risk and debt cannot be put back in the bottle. It’s really this simple, Europe: either rebel against the banks or accept decades of debt-serfdom. All the millions of words published about the European debt crisis can be distilled down a handful of simple dynamics. Once [...]
