EurAnalysis

Aiyoi....

She wont admit it..lolz

I's Great
Added GBP/USD and EUR/USD thread's in the First Post.

Thank's so much...

WSJ BLOG/The Euro Crisis: French, Dutch Politics Rumble European Markets

Posted on 23 April 2012 6:06 | Dow Jones Newswires

(This story has been posted on The Wall Street Journal Online's The Euro Crisis blog at blogs.wsj.com/eurocrisis.)

Posted by Katie Martin

Europe's financial markets showed the strain early Monday after a run of unsettling political news over the weekend from France and the Netherlands raised uncertainties over the commitment of core euro-zone countries to fiscal discipline as austerity policies are weighing on the region's economies.

But the relatively small reaction in stocks, bonds, and the euro's exchange rate indicates that investors do not expect a return to full-blown crisis mode.

The biggest shock came from the Netherlands, where talks over measures to slash the government's budget deficit collapsed unexpectedly, opening up the possibility of downgrades by ratings firms, and sparking off the process towards elections later in the year.

The news adds yet another set of elections to the euro-area calendar, in addition to those already slated in France and Greece. But it also raises questions about the future commitment of one of the euro zone's foremost proponents of fiscal stringency to a German-led austerity agenda, potentially jeopardizing some of the efforts undertaken by politicians and policymakers to keep the common currency bound together.

Further south in France, French Socialist presidential candidate Francois Hollande polled well in the first-round vote Sunday, as expected.
Less well predicted, Mr. Hollande pushed incumbent President Nicolas Sarkozy into second place, and far-right candidate Marine Le Pen, who favors leaving the euro, snagged around one-fifth of votes. Citigroup said the euro was caught "between Holland and Hollande."

"We suspect that more indications that the euro zone countries are softening their commitment to fiscal targets and austerity policies could push sovereign debt yields higher still going forward.

"The headwinds for the single currency could intensify because more funding difficulties for the euro zone core could undermine the efforts to create a credible firewall for Spain and Italy," it said in a morning note to clients. By 0750 GMT, the euro was trading at $1.3148 against the dollar compared with $1.3215 in late New York hours Friday.

Government borrowing costs for France and the Netherlands rose as some investors withdrew from their bonds.

The 10-year French bond yield climbed by four basis points to 3.11% while the corresponding Dutch bond yield rose by seven basis points to 2.39%, according to Tradeweb.

Lower-rated euro zone government bonds also weakened, with the 10-year Italian bond yield rising by eight basis points to 5.73% and the corresponding Spanish bond yield rising by seven basis points to 6%. The resulting flight to safety pulled the German Bund yield to a record low of 1.585%.

Meanwhile, the cost of Dutch five-year credit default swaps, used by investors as a way to insure against non-payment on a government bond, jumped toward a record high. The rate moved 13 basis points wider to 132 basis points, according to data provider Markit.

That means it now costs $132,000 a year to insure a notional $10 million in Dutch five-year bonds against default. The record level, struck last November, was $136,000. In equities, the Euro Stoxx 50 fell by 1.6% at the open to 2274.44, with cyclicals pacing the decline.

The Stoxx Europe 600 autos index is down 2.2%, while the corresponding indexes for basic resources and banks fell by 2% and 1.6%, respectively. Though unsettling, the shifts in these markets were relatively small, in contrast to more panic-stricken phases of the euro crisis.

"To me, this means the market is quite relaxed about Hollande," said Daragh Maher, a currencies analyst at HSBC in London. "He's clearly the front-runner, so either investors don't mind his policies, or they don't think he will go through with them. In the Netherlands, investors seem to be suggesting that they do believe a new government will be able to get a fiscal deal done," he added.

When the support in 6500-400 area is reached, euro should resume the move up..

Thanks
It looks like M5 and price is in your D zone ?

Hi guys!

On my W chart there is the middle BB at 1.3116, and on H chart a trend line support at 1.3118, which might be touched today.

the candle formation seem quite support for resuming the down moves for today

4hr chart llooks have some room for more downward soon..hehe

No, just couple of areas to watch, there is no buy signal yet, only an idiot would have bought it this morning.

I am sure the ones who bought would agree with you right now

61.8 fibo seems to be holding.

E/U M15

hhahaha...agree with u

BTW why are there 2 yellow horizontal lines? Just asking

You think? Probably sitting on their beds and praying to Jesus to help them get out with no loss.

They are just price action lines, nothing special, they are dead now.

Ok Thanks

I am afraid Jesus is not in charge here... This "department" is on its own.

What you need to look right now is 3127 and the 3151 is a small one. 3166 is the big TF line.

Kid raised from the dead, walked on water. I'm pretty sure he can handle this one.

He needs to protect his enlightened ones.