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  • ECB poised for negative rates, will offer unlimited LTROs – FT

    From forexlive.com

    The FT is out with an article citing senior ECB officials on what the central bank will do at Thursday’s meeting. Senior ECB officials have hinted that they will also present measures to tackle the plight of the eurozone’s struggling SMEs to counter what ECB president Mario Draghi this week dubbed a “pernicious negative spiral” of low inflation and tight borrowing constraints.Jens Weidmann, Bundesbank president, is planning to support the ECB’s proposal to ease constraints on smaller businesses in more troubled parts of the currency bloc, according to a senior European central banker, but his vote for rate ... (full story)

  • #1
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  • May 30, 2014 3:54pm May 30, 2014 3:54pm
  •  Trader#4152
  • | Status: Unregistered Trader
Brilliant idea, negative rates. So you will pay the bank to hold your cash. Not necessary to be like Einstein in this situation, I will charge you nothing to hold your cash! Please pay your USD, yen, euros and GBP into my bank account no. 1235813, Bank of Atlantis. No tax payable on no interest, ask an tax adviser anywhere worldwide. Trust me.
  • #2
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  • May 30, 2014 4:18pm May 30, 2014 4:18pm
  •  Trader#8B53
  • | Status: Unregistered Trader
So whats ur point budy? ECB has to do something. Do u suppose they just seat and watch their economy collaps? Though its a tough decision for ECB but some thing MUST be done for things to be in order and the earlier the better...
  • #3
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  • May 30, 2014 7:34pm May 30, 2014 7:34pm
Goodbye euro..
  • #4
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  • May 30, 2014 9:58pm May 30, 2014 9:58pm
  •  Trader#AFF1
  • | Status: Unregistered Trader
I'm not even going to start with this 'inflation'-monster hype history that we live in our times, and just skip to the obvious conclusion that you can't create inflation, or at least the healthy type of inflation by shoving money on the banking lending system.

1) Why is deflation bad? Bad for who? Why is paying less for your goods a bad thing?

Is it so hard to understand that in a country on recession like EZ periphery its not the inflation is the problem, the problem is that the economies are contracting. IF you have outright deflation even the better, thats how countries adjusts, you can't have a country with low growth and high inflation, and if you do YOU WILL EVEN HAVE LESS GROWTH BECAUSE DEMAND WILL SHUT DOWN ON HIGH PRICES!! GET THAT? HOW IS HARD TO UNDERSTAND?
  • #5
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  • May 30, 2014 10:17pm May 30, 2014 10:17pm
  •  Trader#2109
  • | Status: Unregistered Trader
Yes, the economy has to collapse and rebuild itself with a new currency form. The problem is they are not letting our debt based financial system collapse as it is destined to do, but instead keep propping it up using these such means which are only band aids.
  • #6
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  • May 31, 2014 1:50am May 31, 2014 1:50am
Do the opposite, as always!
  • #7
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  • May 31, 2014 2:34am May 31, 2014 2:34am
EUR USD definately will reach 3300, however at that point I'd be careful and watch for a potential reversal. The rate cuts is already almost priced in by the markets.
  • #8
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  • May 31, 2014 7:36pm May 31, 2014 7:36pm
I'll believe this news when I see it and not a moment before
Come with me if you want to live....
  • #9
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  • Jun 1, 2014 2:40am Jun 1, 2014 2:40am
Quoting Ill-b-back
I'll believe this news when I see it and not a moment before
Thanks to guys like you I will make a lot of money this week on EUR/USD----

Buy the rumor sell the fact!------ gonna work real nice this week
  • #10
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  • Jun 1, 2014 5:37am Jun 1, 2014 5:37am
Quoting ruffryders
EUR USD definately will reach 3300, however at that point I'd be careful and watch for a potential reversal. The rate cuts is already almost priced in by the markets.
Well at least someone knows how to read the news. I am interested in seeing if it will go lower than that though first. I do think it is possible especially if there is more good USD economic news during the summer. Unemployment goes down a couple more points and QE3 is lowered again. Then I could see the euro going lower.
  • #11
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  • Jun 1, 2014 8:46am Jun 1, 2014 8:46am
Quoting PaulAmbrose
Thanks to guys like you I will make a lot of money this week on EUR/USD----

Buy the rumor sell the fact!------ gonna work real nice this week
I wish you all the best and hope you do.

Though I am unsure what you are saying.
Am I now your favourite contra-indicator?
Come with me if you want to live....
  • #12
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  • Jun 1, 2014 9:14am Jun 1, 2014 9:14am
  •  Trader#4152
  • | Status: Unregistered Trader
Negative rates will essentially make the euro like gold, both will give no yield. We all know what is happening to the price of gold, so the same will happen to the value of the euro. At least gold has some intrinsic value, e.g. you can use bar of bullion as a doorstop, or wear it as jewellery, or as material for your dentist to fill holes in your teeth. Another useful purpose for gold is to present it as a medal to sporting champions. As for the euro, I am still thinking of a useful purpose. Maybe wallpaper, nah, that idea won't sell. Maybe recycle those banknotes into toilet paper, nah, the process will be too expensive.
  • #13
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  • Jun 1, 2014 9:30am Jun 1, 2014 9:30am
  •  Trader#4152
  • | Status: Unregistered Trader
ok, I got it now. the only useful purpose for the euro will be to pay Russia for gas and oil. watch the oil price crash! no more petrodollar, we will have petro-euro.
  • #14
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  • Jun 1, 2014 9:31am Jun 1, 2014 9:31am
  •  Trader#6370
  • | Status: Unregistered Trader
Quoting Ill-b-back
I'll believe this news when I see it and not a moment before
A reasonable proposition on your part given that there is no way to tell the details of the ecb package until it is announced. But I do hope you are not waiting to make decisions as to the path of price based on the overall outcome.

The ecb event is just an event but market sentiment (i.e. the signed rate of change of price over a given interval unaffected by anything other than the mechanical action of the market in aggregating and signing market orders) is negative medium term. Both GU and EU are currently deviated in negative medium term volatility envelopes at this time as a result. Therefore regardless of the ecb event (which is just an event and from the above definition immaterial in the main to what can be seen or read in future) we are going down.

In any case just checking that you have not surrendered wholesale to the "fundamentalist" camp at this point. I thought you were a technical person (which of course is the poor cousin of chaos). Cheers


The Crow
  • #15
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  • Jun 1, 2014 5:19pm Jun 1, 2014 5:19pm
Negative rates would be VERY interesting to see what would happen in EURCHF. Imagine the tide of euro money flying to the CHF. Could get some incredible risk/reward trades there if SNB has to adjust the 'floor' in EURCHF
  • #16
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  • Jun 2, 2014 1:24am Jun 2, 2014 1:24am
Both GU and EU are currently deviated in negative medium term volatility envelopes at this time as a result.

I love analysts. I agree for now.
  • #17
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  • Jun 3, 2014 8:43pm Jun 3, 2014 8:43pm
Quoting Ill-b-back
I wish you all the best and hope you do.

Though I am unsure what you are saying.
Am I now your favourite contra-indicator?
Yes favorite contra-indicator…

I am long EUR/USD into the speech but hoping to sell when it gets above 1.38-1.39
  • #18
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  • Jun 4, 2014 6:34pm Jun 4, 2014 6:34pm
Quoting Guest
A reasonable proposition on your part given that there is no way to tell the details of the ecb package until it is announced. But I do hope you are not waiting to make decisions as to the path of price based on the overall outcome.

The ecb event is just an event but market sentiment (i.e. the signed rate of change of price over a given interval unaffected by anything other than the mechanical action of the market in aggregating and signing market orders) is negative medium term. Both GU and EU are currently deviated in negative medium term...
I don't trade fundamentals,


But you already know that,

don't you "Crow"...
Come with me if you want to live....
  • #19
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  • Jun 4, 2014 6:40pm Jun 4, 2014 6:40pm
Quoting PaulAmbrose
Yes favorite contra-indicator…

I am long EUR/USD into the speech but hoping to sell when it gets above 1.38-1.39
I hope you haven't been trading against my Euro bullish outlook since the 1.2 turnaround, while countless others persisted with their calls of "PARITY!!!!"

Ha ha ha...

Otherwise you would have lost a lot of money

Funny enough, you outlook is reflected in my Euro tech analysis.

Not looking good for you ???

Come with me if you want to live....
  • #20
  • Quote
  • Jun 4, 2014 6:43pm Jun 4, 2014 6:43pm
Quoting Ill-b-back
I hope you haven't been trading against my Euro bullish outlook since the 1.2 turnaround, while countless others persisted with their calls of "PARITY!!!!"

Ha ha ha...

Otherwise you would have lost a lot of money

Funny enough, you outlook is reflected in my Euro tech analysis.

Not looking good for you ???


strange disturbance in the force. . . worried I am
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  •  Trader#1E9F
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  • Posted: May 30, 2014 3:18pm
  • Submitted by:
     Newsstand
    Category: Low Impact Breaking News
    Comments: 20  /  Views: 5,820