AUTOREFRESH 
Euro continues lower during Asian trade
By Gerry Davies || June 7, 2010 at 05:06 GMT
|| 17 comments || Add comment
Still no respite for the beleaguered euro, EUR/USD down at 1.1925 from a North American close Friday up around 1.1965, having been as low as 1.1878. The market will have noted the article in The Telegraph entitled “Euro will be dead in five years.” Elsewhere Roubini has come out warning that the euro zone is facing a period of zero growth, if not recession. And Der Speigel reports that Germany’s high court mulling interim order against euro zone aid. Oh-eh.
Asian stocks took it on the chin, following their Wall St counterparts in posting appreciable losses.
Euro zone data due today:
08;30 GMT: Euro zone sentix investor confidence for June expected -7.0% from previous -6.4%
10:00 GMT: German factory orders for April expected -0.4% m/m
time to squeeze the shorts. ECB can intervene any time.
Hi Gerry,
I am still holding a dangerous long on EURGBP from 0.8390.
Sentiment is still very negative on EUR and my only hope now is that GBP will also be driven down by consequence of the spread risk aversion though it looks like a decent buy at 1.43 – 44.
Sean is mentioning stops to be placed around 1.4350
Below that level I guess we’ll see new lows for the season, but I doubt stops will be triggered.
What is your opinion?
MMs are trying awful hard to induce retail short covering….lol
Hi Francesco, still the same, cautiously bearish while .8400 line holds. .
Gostop, I thought the same thing until Sean graciously answered my question about central banks – it is not the ECB who makes that decision but the fx dealers who advise the ECB so any intervention would likely be at lower levels
Why would the ECB intervene?Weak Euro is good for Europe.They learned this form the US .More so than US, exports are the main income generating factor in EU, especially Germany. If they have to bail out anybody they might as well do it with a weak currency and generate some income in the meantime. ! 1.15 is next, sooner than late and no CB will stop this.
Thanks Gerry, that level is now resistance.
Sean reported some interest in the 0,8160 area, let us see if it holds and brings some recovery
ECB also explicitly states that the Euro is where it should be…..no reason it can;t go lower — I think near parity is where they want it
If the ECB turn up intervening at the moment I’ll eat my hat
Well I would if I had one
I just looked @ the weekly and monthly EURUSD charts! It looks like 1.1670 first which is only 250 pips from here so we might see it in a day or two if Hungary keeps coming up and the US market doesn’t turn up which it probably won’t since Tuesday there are elections in California, Arkansas, Nevada and some other states which will set up the tone for next fall when Obama may loose majority and God knows what after that.If 1.1670 breaks we’re looking at 0.86 and everyone and they’re panda are going to bail out of diversifying their furry oily skins.
G’morning . I have 23 hats. If anyone needs one let me know. The only one I’m missing is the ForexLive one. And since summer is here in the N. hemisphere maybe that should be the prize instead of that lousy T-shirt. At least the missy won’t hijack it for her nighty.
Intervention is very unlikely as a weak EUR is positive for recovery just like weak USD last year leaded to a mild but at least positive recovery in America
On the other hand, most of the drop has happened already, and much more drop is very unlikely as China would lose too much competitivity
One or two more wawes of selling could lead to some consolidation next Autum and afterwards EUR longs might start to be rewarded
blimey dcoios, that’s a whole lotta hats!!!
I’m short on EUR/USD, and I like it that way. In this situation, where the European macroeconomic system and the entire existence of the EU in it’s current form have been put to the test, nothing is more endangered than the common currency. Seems like Margaret Thatcher was right when she warned in 1986 (two years before my birth) that the EU should not be turned into a federation.
Hi Francesco. Don’t fight the trend my friend. China will make money just like us traders do:up or down , who cares? My friends always ask me if I lost money cause the Euro went down.It is hard for them to understand that you can make money regardless of the direction as long as you’re on the right side of the trade .And also consider they are in for the very long run, longer than Soros, The Sage of Omaha and even any governments in power today. Unless The Euro disapears which it won’t just like the US dollar pronounced dead just a few short months ago, the Chinese are just playing to generate profits on a daily basis and I suspect they are short for the forseable future.
Hi Gerry. that’s what I said when I started counting them..