EurAnalysis

Sharp spike there up to 1.3193 on comments from Chinese PM Wen:
China considering greater involvement in EFSF and ESM stabilization funds
“Urgent” to solve European debt crisis
Supports Europe’s efforts to stabilize the Euro
China continuing to research on how to participate in EFSF and ESM
Europe must rely on itself to reduce debt load and introduce structural reforms
Iran problem is complex and sensitive
Sanctions won’t solve Iran nuclear issue, supports further discussion between Iran and international organizations
Does NOT support Middle Eastern nations developing nuclear weapons, supports dialogue
The Chinese premier was speaking alongside Germany’s Merkel in Beijing

Therefore take it with a grain of salt as he was only buttering up Herr Merkel.

blind entry with S/D able to encash some handsome pips ... wild spike just encountered well

How are you all! Will back soon ... having trouble with packing.

...and look where the spike stopped and was quickly and aggressively rejected.

M15 E/U chart

Even Herr Merkel took Wen's comments with a grain of salt.

So I guess China will participate in the EFSF and/or ESM. The only question is Wen.

http://www.discoveryinvesting.com/up...ary_1_2012.pdf

http://globaleconomicanalysis.blogsp...ows-sharp.html

Snippet:


The LTRO may have ignited the bond markets and the stock market but it did not do anything for bank lending. The New York Times reports Survey of European Banks Shows a Sharp Cut in Lending

Banks in the euro area cut lending sharply at the end of 2011, according to data published Wednesday, raising concern that Europe was on the verge of a credit crisis that could lead to a deeper recession than expected.

A quarterly survey of commercial banks by the European Central Bank showed a surge in the number of institutions that were becoming more restrictive about who they lent to, because the banks themselves were having trouble raising money and were under pressure from regulators to reduce risk.

“It is obvious that we see a deleveraging, a retrenching process unfolding,” Thomas Mirow, the president of the European Bank for Reconstruction and Development, said in an interview last week. He said the figures from the Bank for International Settlements showed “this is not just perception but reality.” The reconstruction bank provides credit to support the development of free markets in the former Soviet bloc.

Banks tightened their lending standards for businesses as well as for individuals, according to the central bank. Of the banks surveyed, 35 percent said they were applying stricter criteria to business loans compared with 16 percent in the previous quarter. Banks also became more reluctant to provide mortgage loans. And they said they expected credit to become more scarce in months to come.

ahahhahahahaha

Put The Stick In As This Pig Is Done...

I do not eat Pork...

http://www.ekathimerini.com/4dcgi/_w...02/2012_425609

Snippet:

Greece has completed a bulk of talks on a new bailout with foreign lenders, but needs to overcome a few sticking points before negotiations can be wrapped up, a spokesman for the Greek government said on Thursday.

"There are three or four sticking points left,» spokesman Pantelis Kapsis told Greek MEGA television.

"The bulk of the negotiations has been concluded."
He said the sticking points revolved around wages, supplementary pensions and the recapitalization of banks.

Bankers and officials have said Greece's second, 130-billion-euro bailout must be agreed before a debt swap deal with private second bondholders can also be finalized.
[Reuters]

Kno's Comments: Today is Groundhog Day and Merkel is now in bed with Bill Murray !~!

Happy Birthday Dear Friend

Many Happy Birthdays Ahead

Your Friend Kno

February 3, 1987 and 15 ahead and many more to follow...

http://www.actionforex.com/action-in...0120202158691/

Snippet:

Dollar remains generally soft in Asia today but overnight's selloff halted as risk takers are starting to get cautious ahead of tomorrow's job market data from US. There has been rumors about an imminent announcement of Greek PSI deal but so far nothing have been confirmed yet. It's reported that while most details on the debt swap deals were completed, there is some fundamental difference between IMF and Germany that's holding the deal back. It's said that in IMF's view, PSI, which involves cutting the face value of EUR 200b of Greek debt, is insufficient to reduce the country's debt to 120% of GDP in 2020. And, IMF has raised the the need for so called OSI, or "official sector involvement" in parrallel to PSI, "private sector involvement", that is, sacrifices from ECB and other Eurozone governments. However, that faced strong opposition from Germany which requires the gap to be filled by deeper austerity in Greece rather than by funding from other Eurozone governments. Regarding the PSI deal, reportedly, the agreement comprises a 72% haircut, 3.6% coupon and a GDP warrant (which will pay creditors when GDP exceeds target) for private investors of Greek government debts.

While the market has been worrying about the fiscal and growth problems in other peripheral European economies, Fitch's stated that Portugal doesn't present significant risk to the Eurozone as ‘the government there is committed and credible. The economy is highly indebted, but they are working on organizing a debt-for-equity swap...That is the right strategy and in the near term we don't see them as a significant risk to the rest of the euro zone'.

Japan Finance Minister stepped up the rhetoric on yen strength as USD/JPY is starting to approach record low again. Azumi said that "speculative moves are increasing in the market" as "yen's buying has strengthened, led by short-term and speculative moves on the back of expectations for low interest rates in the U.S. until 2014." Azumi said the government is "calmly watching market moves very closely" and pledged to "respond by taking firm measures". Meanwhile he also urged BOJ to "take account of economic conditions and various factors in deciding policy, including quantitative easing". The comments raised speculation that Japan is getting closer to closer to intervention. However, we must note again that US has criticized Japan's intervention during second half of last year and thus, G7 coordinated intervention is highly unlikely. And, impact on unilateral intervention should be weak and short-lived.

From WWW.JSMINESET.VOM

February 2, 2012, at 3:36 am
by Jim Sinclair in the category General Editorial |

My Dear Friends,
I have been in New York City all day and have been in various meetings speaking for no less than four hours. This time unfortunately I did not beat the traffic, but rather found myself in rush hour.

It has been a long, great day and I have come home to company.
I am asking your pardon for not doing a significant review, nor being able to answer all my incoming emails this evening. I assure you I will fully catch up with you tomorrow after a lunch meeting with a gold savvy hedge fund manager.

It seems I function best when the pressure is on, but today was, and remains, extremely crowded. With my apologies, JSMineset postings will be thin this evening.

All is going as we reviewed with the International Swaps and Derivative Association guaranteeing us all the liquidity needed to put gold in the true 2012 range of $1700 to $2111. This is opposite to what most people have anticipated.

Respectfully,
Jim

http://www.financialsense.com/contri...got-that-swing

Snippet:

You’ve heard the old saying that no two financial market periods are ever exactly alike, but they do “rhyme”. Of course this characterizes the fact that human decision making is repetitive over time; hence there are certain rhythmic similarities in historic financial market outcomes. Financial market outcomes that are necessarily dependent on human decision making. One exercise I believe is important in each market cycle is to get a feel for individual cycle rhythm and drivers of that rhythm. As an example, clearly in the current economic and financial market cycle US and global central banker intervention has punctuated directional rhythm of markets throughout. If the following chart does not exemplify this, I don’t know what does.

If You Have Any Questions Please Post Them...

Watch for Bernake today at 10:00 AM EST...

EVENT RISK...

USD/JPY INTERVENTION - EVENT RISK

EUR/JPY below 100.00 will need to be watched. Greece Mess and Jobless claims... See you later and use Common Sense and Be Patient...

Good Trading...

Can anyone help me with the link where i can follow bond yields and auctions???

thanks to Kno for the bday wishes!

The latest 10Y yields for all major gov bonds are here --> http://markets.ft.com/RESEARCH/Marke...t-Bond-Spreads

The auction results are usually posted here immediately upon release --> http://forexlive.com

Thank you PT!!!

As you said, i could see euro death in front of my eyes

Hi kno

hope all iswell.

If Japanese government intervene to weaken the JPY. What effec will that have on Eur/USD?

Thanks

ALL THE BEST FOR YOUR 16TH YEAR