AUTOREFRESH 
EUR/USD pulls back sharply from sojourn above 1.3100
By Jamie Coleman || July 29, 2010 at 14:04 GMT
|| 22 comments || Add comment
EUR/USD has turned tail after reaching 1.3107 highs. Talk of a high profile hedge fund manager reiterating his belief a Euro zone sovereign debt implosion will sink the euro. As i noted in the comments, Taylor forecast the dissolution of the euro zone back in May at the height of the crisis, so he is heavily invested in the idea (probably literally) of a collapse in EUR/USD.
Small sell stops are clustered below 1.3060 support in EUR/USD but buyers are seen at 1.3045/50. More sell stops reside around 1.3035. EUR trades at 1.3073.
Let’s not forget, this same Uncle Taylor is also bearish AUDUSD and calls for sub 0.80 level …
he is right in that too…u gonna see aud/usd reaching 8000 soon…
I can’t remember when or where specifically (bloomberg, reuters, etc), from what I recall he was “long EUR/USD uncomfortably” back in the mid 1.20’s. I was looking around to find out when he said this, but I remember it was around the break of the H&S neckline around 1.25
shan, “one day” I could agree with more so than “soon”
re: taylor, the us needs to worry about itself, period. the us defaulted/reneged in the ’30s and the ’70s. (fdr changed the gold peg and nixon went off the gold std.) and today our new ‘friends’ the chinese seem intent on bankrupting us yet again. unless there’s much more growth than is currently anticipated, both the us and eur appear to be scrwd. that’s why bond yields continue to shrink, and why corps are hording cash. thanks to our brothers and sisters to the south, the us has better demographic prospects. and the innovative to lead the western world out of this mess. but as the google experience in china shows, just because some filthy rich western guys have investments in china doesn’t mean that they are our friends and that our business interests over there will succeed. (and if western business interests get abused in china, which is likely, you just have to look to cuba to see how the government will respond to their business network/friends losing a lot of money.) bush was naive in his dealings with china. it’s too soon to make that call about obama, but china’s intentions are clear, and have been for some time. they’ve been trying to bankrupt us. and, with the subprime scam etc, we’ve helped them achieve their goals. we need to take care of our own business, put our own people back to work and let germany take care of europe. if people want to talk about decoupling, fine- let china export to itself and asia for a change. we’ll see how that works for them. i’m not saying that we need to sell the merc’s and benzes, the europeans aren’t out to bankrupt us, but those trips to wal-mart should be put on hold for a while…
“put our own people back to work” – spot on JR.
At last and extremely well put JR, my take exactly, although i don’t have your finess with words!
we’ve got the taxpayer funded IMF trying to tell other countries what to do- meanwhile the simple * jobs > housing > retail * equation is being shorted. anyhow, usd/chf is re-testing 1.04- which so far has held.
Umm, JR? Who do you think lost the most money on the bursting of the housing bubble? The people who created it in the first place: China. http://blogs.cfr.org/setser/2009/03/14/if-chinas-worries-about-its-us-portfolio-it-shouldnt-just-worry-about-its-treasury-holdings/
Jamie, do you really think that those nine guys over there in China have love in their hearts for America?
That’s not the point. Nations have interests, not friends.
You claim china benefited from the financial crisis. I contend they not only caused it (by plonking trillions into markets that could not economically absorb them creating all manner of excesses in credit markets), they also lost huge amounts of money in the process, as they should have. Stuff happens.
It is not in their interest to bankrupt us…who do they export to if we’re bankrupt…c’mon…
“Taylor forecast the dissolution of the euro zone back in May at the height of the crisis” – really?!!! What a joke!. They know so much about Euro Zone organization.
Maybe he was right. But then again, he was indeed wrong.
With rising Chinese wage demands, and a rising yuan, I’d dearly love to see the cost model Amazon is using for their newest Kindle priced at only $139.
http://www.reuters.com/article/idUSTRE66S02B20100729
(made in China by Foxconn I guess)
China is the one who is getting blackmailed. It’s a global engine who keeps selling /exporting from one end and buying on the other so everyone keeps on going with the momentum. They are the one buying crappy US Bonds, Euro bunds etc..
They are trying to save themselves by saving western world. No demand no supply as easy as that.
We have to save us from our own kind i.e. westerners (cruel bankers) who keep seeling dodgy bonds and keep buying CDS to reap the benefits later.
ta
ams
they sold air defense systems to saddam to shoot down our aircraft, they’ve helped north korea become a nuclear power, they’ve helped the taliban. just as we bankrupted russia 20 years ago, they want to bankrupt us today. it’s part of a larger mentality that ‘business is war’ that’s been in place even before admiral perry hit up the japanese coast with warships to bring them into the global trading system. if we go bust, they have more power- and they’d still be selling to us… dancing with those nine guys is dancing with the devil. i don’t think they view business and war as different concepts. anyhow, ours is a free country and people can believe as they want
Cheers,
Power doesn’t move hundreds of millions from peasant farming to manufacturing and services employment. I cheerfully totally disagree with your premise…
Do I think China is a benign partner like the UK or Canada? No, of course not…Do I think they are a formidable rival to be taken seriously on any number of strategic fronts? Of course.
But bottom line, if we go bust, they lose more than anyone else. Full stop…mutually assured destruction, just like in the nuclear era…And by the way, if we go bust, we have formidable military assets to dictate the terms of the bankruptcy, if you want to get all realpolitk…
There is no way china wants the US to go bankrupt. The biggest threat to china comes from wihin. If america goes bankrupt who is going to purchase chinese goods? The chinese r not afraid of external threats. The only thing that can threaten china is revolt from its own people. This is why they will continue to support the US by buying treasuries etc
“they sold air defense systems to saddam to shoot down our aircraft”… they said it’s chicken feather…, “they’ve helped north korea become a nuclear power”… no, they are more afraid than the US… they station army near them, for years the army never sleep…, “they’ve helped the taliban”… no they are one of the large Muslim population in the world.. they fought with Mid-east before US is born, they trade with Mid-East before China become one.. … “just as we bankrupted russia 20 years ago, they want to bankrupt us today”.. that’s KARMA… cos US alone cannot rule the world as the india is watching us…
“business and war as different concepts”… no to the Chinese… they are the same… SUN TZU taught them.
They just here to help… cos their history taught them…
those are nine big picture chinese tyrants/chessmasters who are viewing power in terms of generations. losing some of the reserves they’ve gained by having an undervalued currency for 20+ years is nothing compared to staying in power, and expanding it, first in taiwan, and then beyond asia. imo, they saw what we did to russia 20yrs ago and they want to do that to us. hu jintao, has said that israel is a colonialist plot to separate from the arab nation the part which is most dear to it, palestine. (i think that was the quote. and he probably said it twenty years ago when he was vp and signing deals and selling lots of uranium to iran.) and, more to the point, bin ladin and the taliban had more dealings with the chinese prior to the wtc attack than did saddam. there’s a reason why we bombed their embassy in belgrade in ‘99. and there’s reason to believe that they aren’t all about the money, they are all about the power, and they – not the people of china, but those nine tyrants – are our enemies.
Hey JR! Americans gave lot’s of support to Saddam… Americans funded and helped all the way the Taliban against the former Soviet Union (Stinger air missiles were tested in Angola and Afghanistan)… If we look carefully in all the shit that happens in the world you will find American hand in it so be careful judging the others man…
At the risk of over-generalizing… and on a cultural note, most Americans tend to have more in common with the people of the Middle East (incl. Sunni Muslims, Orthodox, Christians, Jews, Farsi, Turks) than they do with the Chinese – a closer shared cultural heritage. Very strict Muslims regard many eastern cultures as unclean, not a natural marriage there either.
Economically, if the Chinese wanted to become an imperialist nation on a global scale, I think they would have a big job on their hands. They want, imho, to make a lot of money, and the slump in the US is depressing their spirits, and their bank balances.
Hi JC, as always clear minds prevail over irrational POLITYKS LOL