Posted on 05/13/2010 5:36:12 AM PDT by blam
The Euro Is Tanking Hard
Vincent Fernando, CFA
May. 13, 2010, 5:06 AM
Markets in Europe and Asia surged overnight with London's FTSE up by 0.70%, Germany's DAX up by 0.79% and the French CAC rising 0.58%.
Asia was particularly strong, where Japan's TOPIX rose 1.62%, Hong Kong rose 1.04% and China's CSI jumped 2.44%. Australia's ASX 200 was up 1.7%.
Meanwhile, the euro, aka global markets' latest sacrificial lamb, just started tanking hard, breaking through $1.26:
The euro is now about to test multi-year lows:
[snip]
Gold dropped by 0.60% and is now at 1235.40, yet is obviously holding near record levels. Greek and German 10-year bonds held roughly steady and U.S. futures are looking flattish so far as shown by the Finviz graphic below.
[snip]
(Excerpt) Read more at businessinsider.com ...
I wonder if they will monetize their way out of the next crisis in portugal? spain? Ireland?
Time for a European vacation... if you can fly through the ash.
$1.25 is par.
Don’t get too excited, that’s the price at which it was introduced, after which it imediately dropped to $1.17.
england, iceland .... usa?
Seems to me that when the crash comes, it will come fast. Like the drop we had last week. Won’t be able to do anything but watch.
But wasn’t good money spent or pledged on Monday to keep this thing above 1.27
It was down close to $0.80 for one euro within two years of launch. Would be fine with most Europeans if it were to go there again, too. Certainly would help their exports to the dollar-pegged Far East
No, that money had nothing to do with maintaining the Euro-Dollar exchange rate. It was to facilitate debt issuance.
Be prepared for an extended stay...
If I remember correctly EUR low was at 0.87-ish.
Well,what can I say ? The Euro has fallen back to $1.25. Why did I use the word “back” ?
Well because when the Euro was first introduced it was pegged at $1.25/Euro. It is only returning to its original value at the time of its birth.
This is not to say the USD is strong. That is why a good measure of a currency’s strength is its value relative to Gold (or Silver ).
Cameron is now the Prime Minister of the UK.
One news I read says this :
“Cameron has promised Clegg a referendum on his key issue: Reform of Britain’s electoral system, aimed at creating a more proportional system.”
Do you know what this means? It means new parties are going to start immediately. It means the UK Independence Party, who wants to get the UK out of all the entangling laws with the EU will get seats. A lot of them. Maybe 30 in the next election at least. That is, if proportional representation wins.
Here’s a video of Farage in the European Parliament (which is always entertaining)
$1300 gold is no joke and it is here to stay against the harried Euro the wretched and ruined USD & the debt-damaged UK Pound.
Gold stocks are still less OK than the gold ETFs, but they are starting to respond.
In the econo-crisis 30s, gold stocks were the single best play 1930-36.
As of today, a US dollar would get you 0.79 Euros. I don’t like the Euro long term. Well, no currencies, really. But the Euro I especially don’t like long term.
A US dollar will get you:
1.11 Australian dollars
1.03 Canadian dollars
1.11 Swiss francs
0.79 Euros
0.67 British pounds
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