Rajoy says Spain VAT to rise to 21% vs 18%

Sell EURO

Draghi said that raising taxes is not way. And Rajoy ...

I just do not understand what is going on ...

i think to buy,not to sell

bullish

Means war in Spain

This is so wrong. In Greece the goverment took VAT (we call it FPA) from 18 to 23 %.

The result was that comsumption decreased. They did not gather from taxes the money they thought.

Also unemployment hit record numbers well above 20%. (In Spain they are alreary there)

Yes i love this bull rally to enter a short position

Sell eu at 1.2285

SL 1.2310 TP 1.2220
lets wait and hope for tp hit
just my prediction not recommendation please..

Patience. Resistance is @330. At least wait for the stops @00 to break and if it goes again boldly down to 85 then sell.

Agree with you Timetraveler you might be right but i do on my way. I sold early now i'll just wait when it hit my tp i trade reward risk ratio and i thought its was a perfect place to sell. well if i loss i'll lose 25 pips and if i win 65pips. I guess not a bad risk reward ratio.. isn't it?

I agree with Slowpips... the eur will keep going down.Seems to be very unstable but keep respecting the down trend.

I agree that nothing has signaled a change in the daily bearish trend. There may be a relatively small retrace for a few days, but you could feel a "magnet" @ 1.2150 and @ 1.1850 (june 2010 main lows), so I still have a bearish bias.

Take a monthly chart and you'll see that and even below 1.0000, it's NOT "uncharted land" until we reach ~0.8000 (end of year 2000). So parity is absolutely possible and I think that we'll be very near it by the Spring of 2013, at which time I would expect a >1000 pip retrace.

As for the recent VAT raise in Portugal (now @ 23%), it unsurprisingly led to a marked decrease in tax revenue. Do regulators expect that population will keep consuming as it did before the raise, specially in the context of a recession and high unemployment? Come on...

I agree with both of you. It's just that there are many buyers that bought with the same RR from the lowest of 2 years and they won't surrender easily.

They're fundamental customers and must take a short term win before they traditionally lose long term.

time to buy the euro

stick with the trend and make money, go against it and lose money,
Very Simple, not rocket science, just my thoughts, they have served me well, since 29th of may have made over 1500 pips, no doubt someone will come back at me with abuse, if so feel free, knock yourselves out.

As for VAT raising. Let's say they drop it 3%.
Do you believe that the masses will start consuming more? NO
The tax revenue will just flat with negative outlook.

The masses after all this crisis ALREADY consume the basics so it's safer to tax more the fundamental needs.
Moreover by raising VAT you have (false) projections which lead to broadening the credit limit.

Thus the victim has more guilty tax evaders, biggest debt, prolonged crisis and considers German bonds safer than Gold. Elementary imperial economics.

Win, win aaaaand check mate situation

Rajoy "let's ensure my nation has less purchasing power to stimulate the economy. One second... or was it the other way around?" (I can't recall my first class of economics...). And let's cut assistance to the disabled. And increase the price by 3% of their wheelchairs at the same time. I'm so muy better than Zapatero, la la la la la

I'm an American, so I don't get the "value" in "Value added Tax." Am I missing something, or is it just a way for politicians to make it sound like they are offering something while reaching into your pockets?

I think the "value" refers to producers taking something and making it more valuble.

There is only VAT on refined and produced goods from manufacturing so if you take a tree and cut it into a table you have added value to the wood and so there is VAT on it.

But instead the VAT revenue return to the real economy it is grasped as collateral guarantee for extending the credit limit while it is really used to be able to pay new increased debt.

Anyone disagree with the solution?
Anybody?
Wunderbar!

I hope all you sellers enjoy the game.. i realy enjoyed it

Euro is never a Buy...

I must admit that your positioning was better than mine. Lost 15 pips from the move. Then I joined the train of joy and, most importantly, continue to enjoy.