More on Beppe Grillo’s plans to take Italy out of the Euro

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A follow-up to the story I posted yesterday from the same newspaper.

It will surely be playing out to some degree on the euro when markets re-open.

Ok,  so we know that Mr Grillo is a euro skeptic but these kind of comments do little to help calm the market’s fears that Italy is in a very difficult place right now.

Author: Mike Paterson

Mike Paterson has more than 30 years of experience trading FX including key market-making roles as a senior spot trader with UBS and Credit Suisse. He was also head of FX at the State Bank of Victoria in London. With sizeable daily trading volumes Mike carved out a career combining professional integrity with a cynical grasp of seizing market opportunity. Since leaving the City, Mike has been working as an independent consultant and trading for himself, along with presenting seminars and writing for a number of publications. Mike now lives in Kent but remains a passionate sponsor of Southend United FC.



Mike Paterson


  1. So i am assuming this is a good news for euro from a trader’s standpoint of view based on what happened last monday.

  2. In french:

    Montebourg is the french Minister of Industrial Renewal.
    He told this morning on a french radio that the ECB should be more proactive and should take care of growing concern and unemployment.

    We’ll try to find an english link.

  3. Well… since Grillo is quoting hitler on his speeches and he’s against israel and immigrants, being outside euro may be the last of our problems…

  4. “Hang on, I’ll just pass you to my 12 year old son.” – Too funny. LOL!

  5. as expected of a comedian…..full of jokes…….

  6. Hi Mike,what do you mean,euro will open lower than friday night close?thanks

  7. you meant gap down open?

  8. The good, the bad and the ugly… We are waiting for next elections…

  9. “”Zero Sum for Absolute Idiots” because in this globalized economy any attempt to promote demand (by an end consumer who has no incremental income and stagnant cash flow) through currency debasement has no impact when everyone does it.”

    The above words almost got taken out of my mouth. The G20 meeting was a farce. I am not familiar with the circumstances of every G20 country, but in general they are all guilty of currency devaluation, so how can any country (Japan was the bookmakers’ favourite) be censured for doing what everyone else is doing?

    So what the hell is driving this maniacal behaviour by central banks? The obvious response is that they are tring to stimulate their own economies by increasing competiveness of export prices – which will decrease unemployment – which will increase domestic consumption – which will drive domestic economic growth.

    If everyone is doing the same thing then the “obvious response” above is null and void. But methinks many are fooled into beleving this nonsense.

    In my opinion the whole idea of devaluing currencies is to drive up stock indices which in many cases are near multi-year highs. Nothing more and nothing less.

    So right, the average consumer is being screwed by rising fuel and food prices. And the big guys with deep pockets and institutions with inside information are getting fatter and fatter by taking risk on bets.

    And making money as a retail trader gets harder and harder over the years. Trades need to be picked very carefully otherwise you are going to get whipsawed out. That’s my two cents worth as a full-time retail trader for 5 years.

  10. @arriplet and others.. All i’m pointing out is, (and we know already that Grillo is a euroskeptic),that the markets are already very shaky and these sort of statements from a man who’s effectively holding the balance of power will do litttle to calm fears that Italy’s in a mess right now

  11. Hi Billy, I refer you to my reply to Arriplet..Sometimes I’m only the piano player !

  12. Ode to being a moderator with a thick skin, patience and a will to succeed ;)

  13. who cares fundamentals on forex :D three waves up, now was wave A, we get B and then futher down C. the worst thing with trading is to show your true fundamental emotions on trading instruments.

  14. The uncontrollable falling of euro should be blamed on Mario Draghi for his irrational and unguided statement that “euro exchange rate is on the high side”, that the ECB is watching the FX rate and will act when necessary. Such statement is least expected at a time that euro is trying to regain market confidence after the intense heat of the debt crises was like calming. Things got aggravated for the euro as mario statement was immediately followed up by the very poor GDP and PMI data for the eurozone coupled with the Italian election saga
    I strongly believe that euro couldn’t have fallen so fast despite the Italian election outcome if Draghi did not drag the euro to join in the ongoing currency war by his thoughtless statement after the ECB meeting. It is a subtle scenerio but his statement tantamounts to currency devaluation in disguise and the market being what it is ( “always sensitive and quick in reaction”), did not show any mercy to the euro. So put all blame on Draghi and leave Beppe Grillo alone, he is an opportunist and a noise maker.

    Draghi should have known that not every currency devaluation do boost the economy of the country in question. Eurozone will be better off if Euro is relatively high at least within the range of 1.3400 and 1.500 to dollar, reason being that the eurozone is not a single economy but the make up of economies of different countries with wide growth differentials. Currency devaluation can boost the economy of such countries like USA, Japan, Uk, Australia, etc but not EUROZONE. The only thing good for euro now is more ECB stimulation and insistence on goverment reforms and structural adjustment programmes for the member countries and not euro devaluation. The ECB should do everything possible to encourage the market to drive euro back to a sustainable level.

  15. Beppe Grillo makes Alexis Tsipras look a bit better now, eh?

  16. This is beginning to worry me. Grillo is what is termed a ‘useful idiot’. The man has no clear policies, his party is not a party it’s a shambles, and that seems to be part of the ‘strategy’. These morons will leave Italy without a government and the concern is that what will step into the void (in time) is more EUROPE. Already we have de-facto government by the chinless bureaucrats in Brussels, if national governments are weakened in this way EUROPE can only become stronger. So Grillo, and his movement of morons, will end up delivering Italy into the hands of Brussels. Already Napolitano has been quoted as saying Italy needs more ‘EUROPE’. That’s not what Italians want but that’s what they will get if they go down this road. Order out of chaos and all that, but FIRST comes chaos.

  17. People just dramatize trivials comments such as so -called Grillos’. Dow is at 5 year highs. Most European indexes are near all time highs too. EURUSD is euro versus USD. EURGBP is quite near the historical highs. My main point is that these shenanigans dont matter in this market though they provide entertainment value. recent hard data from Eurozone are at least flattening in line with Draghi’s forecast . What is going on in Eurozone is akin to a revolution. An attempt to change way of life of citizens. If they achieve this peacefully ( as I hope) they will reap the benefits. It happened b4 during Asian, Russian, Brazilian crisis. At each point in history one will be down and struggle to make necessary decision. USA is postponing their own time but it will come.


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