Tuesday, May 18, 2010

Oy Vey! Euro On Way To Parity With Canadian Dollar! Zio Bankers Clean Up!





Euro falls to new 4-year low

http://en.wikipedia.org/wiki/Oy_vey
By Chavon Sutton and Julianne Pepitone

NEW YORK (CNNMoney.com) -- The euro pared fragile gains Tuesday, touching a new 4-year low, amid new concerns about Europe's debt crisis.

What prices are doing: The euro plummeted 1.5% on the dollar at $1.220 on Tuesday, hitting a fresh 4-year low. The European currency had fallen to a four-year low Monday morning versus the dollar, crashing through the key technical level of $1.23 to $1.2234.

The dollar rose 1.0% versus the British pound to $1.4330. It was down 0.4% against the Japanese yen at ¥92.243.

What's moving the market: Earlier Tuesday the European Union's statistics bureau said consumer prices in the zone jumped 0.5% in April over the previous month, a 1.5% increase over April 2009. The results were in line with market expectations. Also, Greece received its first infusion of cash from the joint EU and International Monetary Fund rescue package.

Although the news helped push the euro to fragile gains earlier in the day, it did little to assuage investors and analysts.

"The acceleration of the price index is trivial," wrote Ian Shepherdson, an economist at High Frequency Economics, in a research note.

The euro plummeted in afternoon trading after Germany announced plans to ban short selling on some European banks and government bonds of debt-ladened euro zone countries. Traders saw this as an indication that the troubled nations are not yet out of the woods.

What experts are saying: Germany's announcement "powered the euro lower," said Tom Benfer, director of foreign exchange at Bank of Montreal in New York.

Germany's decision highlights the fact that fundamentals in some of the euro zone countries are really weak, said Benfer. "The authorities are trying to prevent speculators from putting more pressure on them (government debts)," he said. Shorting the bonds of troubled governments could push out borrowing prices further, exacerbating the debt crisis.

Still, some analysts have said that the market has been overly bearish, especially in the wake of Europe's efforts to stabilize the debt-laden countries and the shared currency.

"It doesn't take too much these days to push the euro lower," said Benfer.

But the bearish sentiment in the market is likely to persist as traders seek clearer signs that Europe's woes will not spread and choke off the global economic recover. This will likely push the euro lower.

"It's a moving locomotive right now," said Benfer. "It's very hard to stop because the market psychology is just so negative."









































1 comment:

  1. WELL IT LOOKS LIKE THE US DOLLAR IS KING OF THE CURRENCIES AGAIN HERE IN FEBRUARY 2015. THE CANADIAN DOLLAR IS WORTHLESS AS THE CANUCKS HAVE PURCHASED OVERPRICED HOUSING AND TAKEN OUT HUGE MORTGAGES. IN CANADA, PEOPLE RE WORKING 2-3 JOBS TO STAY AFLOAT. ON JOB TO PAY THE MORTGAGE, ONE JOB TO PAY FOR FOOD AND A CAR AND ONE JOB TO HAVE MONEY TO GAMBLE WITH AT THAT NATION'S MANY RACETRACKS, CASINOS AND LOTTERY GAMES.
    THE EURO HAS TAKEN A NOSEDIVE IN SPRING OF 2014 A US DOLLAR WOULD BUY .72 EURO NOW IT BUYS .94 EURO AND IN SIX OR EIGHT WEEKS YOU'LL BE ABLE TO PURCHASE MORE THAN 1 EURO PER US DOLLAR. THE RUBLE IS IN THE SCRAP HEAP AS CURRENCY MANIPULATORS UNDER US GUIDANCE HAVE TARGETED THE RUSSIAN CURRENCY FOR DESTRUCTION. AS THE RUSSIANS LOOK FOR HARD CURRENCY FROM ABROAD VIA THEIR OIL AND GAS SALES THE ENERGY MARKETS HAVE COLLAPSED KEEPING THE RUSSIANS, THE IRANIANS AND THE VENEZUELANS FROM OBTAINING HARD CURRENCY NEEDED TO RUN THEIR COUNTRIES.

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