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Posts by "macrosam"
189 Posts Total by "macrosam":
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Posts by Anonymous "macrosam":
1) ECB essentially indicating that the full allocation repos will be extended into 2011, taking off the table concerns of end of year liquidity concerns, and
2) The Eurozone will have comparable USD funding needs for the remainder of 2010 as it did in the first half of 2010. I don't believe this USD will be swapped back into EUR, or at least not the majority of it, reflecting a need to fund USD denominated liabilities.
I am waiting to short EUR/USD around the 1.3250 - 1.3300 level, anticipating that may present itself on Thursday or Friday of this week. First target is at the 1.2600 level.
Euro zone current account deficit widens in May
19 Jul, 2010 @ 04:06 am BST | written by ecPulse.com
Euro zone current account seasonally adjusted showed a winded deficit in May to 5.8 billion euros compared with the prior deficit of 5.1 billion euros which was revised to 5.6 billion euros.
The non-seasonally-adjusted reading also showed a widened deficit to 16.7 billion euros from 6.9 billion euros, revised downwards to 7.5 billion euros.
WSJ: Former PBOC Adviser: China Should Reduce Dollar Assets In FX Reserves
DOW JONES NEWSWIRES
China should reduce the amount of U.S. dollar-denominated assets in its
foreign exchange reserves in favor of those denominated in other currencies or
other types of assets, former People's Bank of China adviser Yu Yongding wrote
in an article published in the state-run China Securities Journal on Monday.
China doesn't disclose detailed information about the composition of its
foreign-exchange reserves--at nearly $2.5 trillion, the world's biggest--but
economists have estimated 65%-70% of the reserves are invested in U.S. dollar-
denominated assets, mostly U.S. Treasurys.
...
http://noir.bloomberg.com/apps/news?pid=20601087&sid=avNXnGsrVUmc&pos=1
External debt is managable if it is dominated in the native currency. EUR is a bit of a special case as the restrictions (both fiscal and monetary) associated with the currency make it comparable to the restrictive (repressive?) nature of gold as a currency, coupled with the incongruence of economies, results in debt that is really in no one's native currency, yet the currency must be used as such.