Euro dives on Italian call to quit currency

Reuters -UK ^ | Friday June 3rd, 2005 | Naomi Tajitsu

[expatguy]

I think this will be the first of many. Time to get out of the Euro might be now.

[M. Espinola]

"OPEC will have to delay a shift over to EUro pricing for petroleum that Vladimir Putin was spurring them on towards."

All Americans should be jumping for joy and economic relief concerning terrorist rouge state Iran, all of a sudden having the currency card ripped from under the mullahs. This is one OPEC threat that is rapidly becoming a non-issue as the Euro gaps downward. Putin will also have an emergency meeting. :)

[dennisw]

I know you are "into" oil and could immediately appreciate the EUro constitution rejection's impact on dollar pricing of oil :) Take a hike Vlad!!!! Hit the road Jaques!!!!

Next dollar threat will be from China lording over an Asian basket of currencies and trying to present it as a valid reserve currency. But that is some years away from fruition and depends on China making Japan subordinate to them.

[Caipirabob]

"Deeply Saddened..."

[M. Espinola]

"I think this will be the first of many. Time to get out of the Euro might be now."

A number of currency traders were already playing puts on the Euro as of December. Note on the Euro chart below the Euro spiked up, reaching a high of just over $1.36 verse the U.S. Dollar, then sunk to around $1.28 in February, jumped back up to $1.35, but peeked out, and has been sinking ever since.

Euro drags dollar to 12-month low

Euro is strangling our industry, says German minister

[M. Espinola]

'"Deeply Saddened..."

I'll send 'old' flowers to the rat bum. :)

[chronic_loser]

YEAH!!!!!
(long the dollar, short the euro since 12/09/04)

http://snarktown.blogspot.com/2004/12/bottom-for-dollar-or-dead-cat-bounce.html

[M. Espinola]

Very good point on the monetary power of Peking. What would the global economic/currency implications be if Red China's Renminbi was devalued against the USD?

Here is another question speaking of oil. Prices for crude are bouncing back up, again.($54.10 What effect do you believe a continuation of high energy cost will do to the over-inflated housing market down the road?

I bring this up because currently things look bleak for the Euro (unless one is shorting it) and the USD is looking up, but, if the US housing boom goes bust, coupled with other hyper-inflated markets such as the UK's whose national currency is going to be viewed as more appealing over all?

Another possible problem for Gulf exported oil could be Iran fanatical rulers when the régime is finally confronted over the nuclear issue. Any major oil disruptions would not be kosher if things heat up just as the upcoming winter's cold weather gets under way. An abrupt price spike in the price of crude of let's say another $10 to $15 a barrel on top of current levels would make it rough going, to say the least, if any jolting price increase is prolonged for more than a couple of months.

[M. Espinola]

"YEAH!!!!! (long the dollar, short the euro since 12/09/04)"

Bingo! Right on the money!

You have a great link there, I shall drop in later on.

Little side question. How do you think the Pound & the Aussie Dollar will trend in general as the Euro declines?

[BubbaJunebug]

I'm sorry but I can't pass this up.......

"EURO GETS WHOPPED"

Ok now you can spank me

[chronic_loser]

You are kind.
Don't have time to blog much anymore. Big things going on with my business have forced me to curtail.

I think the OZ is actually a stronger bet than the dollar, but I took the USD b/c it was a better spread being so severely, severely oversold. We had 4 weeks straight of articles somewhere in the WSJ worrying about the dollar rout...., and then the pretty faces (network news) started howling about it in Oct/Nov. So I bought the dollar on a contrarian play with tight stops and got lucky. More money in as the move strengthened The Ozzie is strong, tho.

The pound will, I believe, do well against the euro. I expect anything will do well against the euro for the next little while. I will lighten up my position when we see concerted interest rate hikes in Europe.

Hope you have a wonderful day. Hard not to enjoy mine with news like this, huh?

[Ff--150]

"I just never understood how they thought they could combine the currency of an economic powerhouse, like Germany, with a borderline Third World country, like Portugal."

LOL! It's in that little book in the back of that best-seller called The Holy Bible.

I'm short on my Limit order @ 1.2143 and then...1.2067 on the Euro.

It's nervewracking--to say the least :)-- for if I hadn't proved God on His Word on the hundredfold return...No way, Jose.

[jimbo123]

The Dutch want their guilder back, too.

[M. Espinola]

"EURO GETS WHOPPED"

[Ff--150]

"Little side question. How do you think the Pound & the Aussie Dollar will trend in general as the Euro declines?"

Weren't asking me, but i'll butt in anyway :).

Really too early to tell on the Pound but the trend is down, sorta. With the Aussie, they are in a drought and treading water [npi].

FWIW, the Kiwi and Swissie might be watched with interest as the Kiwi is fighting like h*ll to break its resistance [don;t have that here], and in spite of the tinfoil jokes and so on--the real wealth backs that Franc...

[wildandcrazyrussian]

Just looking at that Euro chart (as a an amateur investor who will never do currencies or futures), doesn't it seem like there is an 8-cent interval between critical support and resistance levels? (1.18, 1.10, 1.02, .94, .86, then back up to 1.18, 1.26, 1.34) I wonder what will happen when it tests 1.18 and then 1.10

[SIDENET]

This is HUGE !!!!

Possibly even HUGH!

[G-Man 1]

Remember when the Chicoms were going to diversify into the Euro? Hope they made it.

[Jack of all Trades]

That graph in reply 10 is pretty striking. Economics and currency trading are not my area of expertise, I'm an engineer. What is it that accounts for the cyclical sawtooth pattern that has a nearly constant period of four months? Is it natural or is it forced?

BTW, Viva Italia!

[G-Man 1]

Each pip is about $12.00.