Bank of England cuts key interest rate by a greater-than-forecast 150 basis points

and you thought the fed was dovish
http://www.bloomberg.com/apps/news?pid=20601087&sid=aBHhQpi1JV68&refer=home

 

That's called playing catch-up. Now we get to see if the biggest hawks of the land play along (the ECB) or if inflation (laugh) is still too much of a problem with them.

 

ECB 50bps. I guess they are waiting for a real crisis

 

What happens when Japan goes to zero and The Fed is at .25% The ECB at 1% ?

 

Yes, it's reassuring to know they will still have some 'firepower' left when the mob is out rioting in France and Germany

 

The US and UK economy are down and counting...

The UK has no manufacturing, exports or anything to fall back on - unlike most of the Eurozone countries. More skilled workers in Germany than in the UK, so it is inherently much stronger than the UK. Also, there was not a housing bubble in Germany, but actually a housing price decrease the last few years, while the UK was the worst bubble in Europe, and heavily linked to the US with financial markets and services.

 

Gring, you make it sound like the EZ has some robust export business that somehow is immune to what's going on. A large portion of their exports go to Eastern Europe, which is in a state of complete implosion.

The ECB has been blind/impotent for so long that it is only a matter of time before the dream collapses completely.

 

You might wanna reread that fella - 3% vs 1%. Now you gonna tell me how the BoE is "dovish" when their rates are 200% higher than the Fed?

You're messin up by comparing present data to past data, rather than to present conditions. You'll lose your ass in the market with that kind of backward-looking anchored outlook. Read some behavioural finance buddy, you owe it to yourself and your account balance.

 

Deficit spending. Get yourself in line at the public spending trough, before all the other hogs.

 

Ivanovich,

that is true - the newer European markets are taking a heavy hit - but they are still in much better shape than the UK. Spain and Italy are in deep shit, but otherwise it's not that bad really. Sarkozy is on the rampage, while it seems the varied outlooks in Europe will also be the strength forward. Remember, they are the world's largest trading bloc - and e.g Poland and other new EU members are still looking quite good. Russian trade with Germany is also looking to be picking up, I think, and they have been having lots of successful bilateral talks.

Keeping it real makes it a little easier to decide when trading FX, while there certainly are deep problems out there, I do think the Eurozone is not looking too bad.