The Eurozone has agreed to help Greece, in principal anyway, which is now going to drive the Euro higher. With the weak dollar occuring at the same time it’s a double wammy for the Euro. It’s like a fast train heading north with two engines. Enjoy the ride mates.
This will now make the Europeans re-think quantitive easing which may create a roller coaster effect on the Euro. Yippee!
This action should also help the Brits as the weak Euro has been screwing up their goal of keeping the Pound value down to maintain market competitiveness.
Commodities are exploding today driving the dollar down as well as the stock market showing a shift in investment dollars. What a difference a day makes.
Apparently, it’s a bit of rumour mongering. Shortly after that:
German government spokesman says reports about decision on aid for Greece are "unfounded."
They’re playing games.
This action should also help the Brits as the weak Euro has been screwing up their goal of [B]keeping the Pound value down[/B][I] to maintain market competitiveness.[/I]
Yes, Spain is a problem child like California, Michigan, Ohio and Illinois is to the US. Ireland’s population is the size of Kentucky with Portugal not much bigger. So although their a problem it’s not going to bring Europe down. Spain’s economy was going gang busters before the recession. Like the US past easy money and the demise of the auto industry has crippled their economy.
The southern Mediterranean coast of Spain where I once lived
and met my British wife is the Florida of Europe and Britain. The same is happening there as in Florida. Tourism is down and so is the building industry.
I find it interesting that Santander Bank, a Spainish bank and Europes largest, is buying up so many British banks.
Germany has denied any bailout of Greece. Interesting.
I think we just lost one of our engines on this north bound express. Due to the fact the dollar has no back bone today it probably won’t completely change direction but we will be limping into the station.
on the 1h and 4h E/U chart stoch and rsi are OB or will be shortly, daily is still OS tho, probably gonna drop in price soon? but may keep goin up long term? idk
Are you saying it’s more likely the US will bail out California then the European Union bailing out any one of the PIGS?
Is an investor more likely to ignore the demise of any of the PIGS anymore then the demise of any of the states? I think not. They wanted the common market and a common currency to be more competitive with the world. They now have it so as the Union goes so goes the Union. It’s all part of the good, the bad and the ugly of being a family.
So what’s the net effect of either? Bad news for either currency and that is why the Euro has been weakening. Investors have been bailing on the Euro and buying USD with some Asians having a liking to the GBP. Any bad news in Britain and there is only the USD left because of the sheer size of the economy. Hense the run up of the dollar. If things get any uglier here you can watch gold go through the roof.
This is all fun but a little scary to watch. It’s like the Friday night horror movies only this is all too real.
Trade well and watch the fundamentals for direction or just wait for big money to show you the way. I think they’re even getting a bit dizzy at the moment. Way too much going on right now. It’s like a car race with the leader just having his front wheel go flat.
The news has put both in consolidation otherwise known as indecision. I bailed at the channel and blowing by the Bols. Got only a few of the down pips due to reading the news. Now looking for market direction before re-entry.
Good trade, as you know the Aussies will have a bad time of it in a recession due to their predominantly commodities economy. When China starts making lots of steel again they will again be strong. I’m afraid they won’t have a monopoly as China is bulding a major high tech steel mill in Brazil which will keep Aussie iron ore dirt cheap.
China and Brazil are forming alliances which will put the US and the rest of the free world on a second tier level as far as Global economies are concerned. On one hand is a country of one billion cheap and willing laborors with a govenment that is quick and agile as a tiger. On the other hand is a country with rich national resources of iron ore, gold, oil and timber.
China is already eyeing the automotive market and designing and building it’s own car with quality as the chief component. It is building a jet liner at this writing. I’m afraid the US and the rest of the world in its search for pease and cheap labor has created a monster of which the world has never before seen.
Unlike our slow deciding democracies and socialist governments the government of China moves very quickly and efficiently and lets nothing stand in its way. It has become a communist capitalist half breed which is half Pitbull and half Greyhound that will continue to attack the North American Collie, Euopean Dashund and the British Bull Dog. The outcome of this continued attack on our economies is inevitable. We have already witnessed one major attack by Japan in the last 40 years along with Korea and Taiwan. The attack by China in comparision will be like a granade to an atomic bomb.
The good news is products will be cheap but unless you work in China you will be working in the service industry. Australia already has 68% of it’s work force in a service related industries. The others countries will follow and the future is grim for good salaries, good benefits, national health and pensions. I have never seen so many homeless people and panhandlers as I see right now in the US. It sickens me to see the very people who caused all of this heartache making even more money with government money. Who says crime doesn’t pay.
neither am i but im happy waking up to two closed trades at 50 pips each
i was thinking that since it hit the once fib extension and is OS it will bounce up and hit the next highest fib extension, exactly what you said (off by 1 pip actually) sooo, secretly u use fibonacci #s w/o even knowing it
Having lived in many of those countries you are correct on the difficulty of reaching a decision. They are much worse then the US Republicans vs Democrats or the Brits Labour and Conservative parties. The only thing worse then how much they hate each other is the British dislike for all of them. LOL. Come to think about it I haven’t heard the Brits say anything nice about the Americans either. LOL.
The Germans and the French could care less about slighting anybody as both think their crap doesn’t stink. It may be more likely they’ll kick Greece out into the cold. It will be interesting to see it all play out but they already made their bed. Now it’s time for sleeping in it. Will they let the Euro fall with the downfall of Greece? Time will tell if they get kicked out of bed for snoring too loud.
I agree as I jumped back in on a long on the GBP and it’s behaving quite nicely. Any indecision on the Euro front will raise the Pound. I am somewhat cautious as to the direction tomorrow on the Euro but welcome the volatility. An overnight trade may be too risky on the Euro trades. The GBPJPY has been great today as well.
