EUR

oh jolly jumper
this is exactly the opposite of whats is happening before a bubble burst
everything is rosy doing fine okay cayman nad then oh damn shit something happened an incident in global imbalances
well today PRECURSOR in the market are the one that have visibility and they act in such way that theya are a handful of corp that plays the recovery and that will be that handful of players that will take their profit partially according to the projected correction.
well it is pure psychology used in psycho warfare where one has deter the mind of other by information and rumors. EU, i insist, is gonna recover from this debt rating but will fall back into it. for the moment all marked to market fin ops in CDO, etc.. needs more relief within the extended period of time by the fed
what is not said is that JC trichet and Cie( lets give them a nickname to this hogan heroes) are gonna take the relay in injection liquidity; if i dont mistake it is priced in euromortgage bond.

euro is heaDING TOWORDS NEW LOW...MORE CRISIS IN EUROPE............

Thank you for your insights! I love this board. So many different perspectives and experiences. This only makes us better MACRO traders.

I suspect that is exactly what will play out and don't bet on EUR/USD staying above 1.3000. Before the issue was solvency but the market priced in implicit liquidity guarantees. Now they are realizing that liquidity is in jeopardy. The existing austerity measures are unacceptable to the Greek populace nevertheless any imposed by the IMF, you've seen a myriad of strikes, recent outbreaks from the Revolutionary Struggle (EA) members, the impact of the volanic ash from Eyjafjallajokull and the sword of damocles in the form of Katla. From a politicians perspective, he has no choice but the restructure or default, less he wish exile upon himself from his own country.

And this is just Greece. The others wait in line.

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