Wow the USD/JPY pair is getting destroyed. And EUR/USD is rising to all time highs. Ouch town population United States Dollar (greenback).
I said in the other thread it might be start of the end for $ Emergency rate hike is needed Anyway -3% tomorrow at least for stocks Yen will be below 120 in the morning
I was buying off the 121.10 support. I think there's too much dumb money around not to take advantage of.
I think you have been missing the essence of things. Americans need lower $ to keep their export industry alive given the high trade deficit. Europeans need higher Euro to counterbalance high Oil prices since Crude is priced in $. At the same time, European exporters are getting the short end. French president is upset. IMO, Trichet is doing the dirty work for American exporters. Read this article (between the lines): http://www.afp.com/english/news/stories/070711164557.3sr88zvl.html Trichet insists on independence to hide his submissiveness to American policy. Europeans after WWII are slaves to American Multinationals. Nicolas Sarkozy will try to change that but Germany's high ranking waitress does not agree. She is indebted for the unification approval by US. Ron
never thought about the possibility of an emergency rate hike - hmmmm if the dollar keeps losing ground, the FED may be forced doen this route. Dollar now trading at 2.0328 against the GBP. Its going to be expensive for Americans to visit Europe this summer.
Wow. JPY got murdered again! Bounced from 121 back to 122.5 We'll see how this will react after the BOJ talk. My guess is resumption of the carry trade and JPY back to 123.5 in a day or two. I got killed today, let a profit turn into a loss so i'm a little pissed Screw the Yen. I'm going back to good ol' Euro.