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EurAnalysis Kindergarten 24 replies

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  • #53,201
  • Sep 7, 2012 8:47am Sep 7, 2012 8:47am
Quoting Ken A
I believe some of the USD are fleeing to CAD. The Crude now is dropping like a rock but the CAD is getting stronger. This could be related to Gold price rally. I could be wrong though.
That's more related to the USD getting an a$$et whooping than anything else. Gold doesn't really help the CAD. It helps the ZAR and the AUD
Those who say it cannot be done should not interrupt those who are doing it
  • #53,202
  • Sep 7, 2012 8:48am Sep 7, 2012 8:48am
Nathan that guy gets a trip to the Bahamas for the straight face presentation.

How this country has survived surely is a testimony to its internal strength, not for its intellect.
  • #53,203
  • Sep 7, 2012 8:49am Sep 7, 2012 8:49am
well, the AUD is very nicely positioned now to continue its downtrend......
  • #53,204
  • Sep 7, 2012 8:50am Sep 7, 2012 8:50am
Quoting PipTrapper
That's more related to the USD getting an a$$et whooping than anything else. Gold doesn't really help the CAD. It helps the ZAR and the AUD
I am a bit slow witted right now. By what means to maintain/intervene a strong USD and will it benefit US overseas debt?
  • #53,205
  • Sep 7, 2012 8:51am Sep 7, 2012 8:51am
Attached Image (click to enlarge)
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hmm.. looks like a bull flag. most probably it will retrace to 50% @ 2740 cos of the double top
  • #53,206
  • Sep 7, 2012 8:52am Sep 7, 2012 8:52am
Quoting Ken A
I am a bit slow witted right now. By what means to maintain/intervene a strong USD and will it benefit US overseas debt?
I don't understand your question
Those who say it cannot be done should not interrupt those who are doing it
  • #53,207
  • Sep 7, 2012 8:53am Sep 7, 2012 8:53am
Quoting foto
nathan,
Heaven forbid someone at the Fed woke up one day and thought jeez maybe wiping out savers and high oil prices is not too smart.
On the second front, all the antibusiness rhetoric from the other source, woke up one morning and thought, jeez maybe business job creation is a good thing. Wow I sure am a genius.
indeed...well, give a man a hammer and then for some reason he thinks he needs to start hammering things......
  • #53,208
  • Sep 7, 2012 8:54am Sep 7, 2012 8:54am
Quoting FXSwissTrader
Coordinated action perhaps?
Said it yesterday. The big boys are running the game.

It's dropped a full dollar (100 points) in the last 15 minutes to try and keep the dollar stable. At this rate, I may hit my retrace target of $92.40 today!
I observe your reality but live my own.
  • #53,209
  • Sep 7, 2012 8:55am Sep 7, 2012 8:55am
A simple way to measure the market expectation of QE3. Just use the weekly fibo levels on gold as a guide. Expectations now are 50% that the Fed will print.

Okay it's not rocket science but it is relative

XUA/USD Weekly
Attached Image (click to enlarge)
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Those who say it cannot be done should not interrupt those who are doing it
  • #53,210
  • Sep 7, 2012 8:55am Sep 7, 2012 8:55am
Quoting PipTrapper
I don't understand your question
I mean strong USD will benefit US hence the coordinated action to prevent it from falling? I read about coordinated actions couple posts back.
  • #53,211
  • Sep 7, 2012 8:58am Sep 7, 2012 8:58am
Ok, 10AM EST London price fixing and usual trend reversal to follow.

To be honest, I hope we don't get it today. I want the E/U to close at or near these levels today. It would setup for a nice tweezer pullback on Monday.
I observe your reality but live my own.
  • #53,212
  • Sep 7, 2012 9:02am Sep 7, 2012 9:02am
Today's London fixing at 16:00 should tell us how much bullish sentiment there is left in the market.
Those who say it cannot be done should not interrupt those who are doing it
  • #53,213
  • Sep 7, 2012 9:03am Sep 7, 2012 9:03am
Quoting Ken A
I mean strong USD will benefit US hence the coordinated action to prevent it from falling? I read about coordinated actions couple posts back.
Ken, the USA has been aggressively and intentionaly reducing the value of the dollar for many years.

For one, they do this to keep US export goods cheaper on the world market. This is also why China pegged the value of their currency to the dollar. It is the hight of hypocrasy for any American pol to accuse any other country of "currency manipulation" when the US Fed is the king of currency manipulators.

Secondly the US has the largest sovereign debt of any country on this planet. Therefore, those wilely pols think they are so clever to continuously devalue the dollar so that they always pay back those debt holders in cheaper dollars.

Romney is the first American pol i have heard in many years that seems to advocate a stronger dollar in any serious way. However, what he would actually do when he got in, who knows.........
  • #53,214
  • Sep 7, 2012 9:04am Sep 7, 2012 9:04am
Quoting PipTrapper
Expectations now are 50% that the Fed will print.
Rofl
"I know one thing, that I know nothing." Sokrates
  • #53,215
  • Sep 7, 2012 9:07am Sep 7, 2012 9:07am
Quoting PipTrapper
Today's London fixing at 16:00 London should tell us how much bullish sentiment there is left in the market.
Isn't that later than usual?
I observe your reality but live my own.
  • #53,216
  • Sep 7, 2012 9:07am Sep 7, 2012 9:07am
Quoting nathan25x
Ken, the USA has been aggressively and intentionaly reducing the value of the dollar for many years.

For one, they do this to keep US export goods cheaper on the world market. This is also why China pegged the value of their currency to the dollar. It is the hight of hypocrasy for any American pol to accuse any other country of "currency manipulation" when the US Fed is the king of currency manipulators.

Secondly the US has the largest sovereign debt of any country on this planet. Therefore, those wilely pols think they are so clever to...
That's what I thought too but wasn't so sure what is the benefit to maintain a strong USD with this 'coordinated actions'.
  • #53,217
  • Sep 7, 2012 9:11am Sep 7, 2012 9:11am
Quoting Ken A
That's what I thought too but wasn't so sure what is the benefit to maintain a strong USD with this 'coordinated actions'.
the only "coordinated action" i can see the USA or US Fed participating in isactions such as TARP to prop up big banks, or with europe through the IMF to prop up the Euro Zone financial structures.

There is absolutely nothing the USA for Fed has done to support the dollar. Very much the opposite.
  • #53,218
  • Sep 7, 2012 9:13am Sep 7, 2012 9:13am
Quoting nathan25x
the only "coordinated action" i can see the USA or US Fed participating in isactions such as TARP to prop up big banks, or with europe through the IMF to prop up the Euro Zone financial structures.

There is absolutely nothing the USA for Fed has done to support the dollar. Very much the opposite.
Alright. Thanks.
  • #53,219
  • Sep 7, 2012 9:15am Sep 7, 2012 9:15am
1734.61 should be top on gold for today.
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I observe your reality but live my own.
  • #53,220
  • Sep 7, 2012 9:15am Sep 7, 2012 9:15am
Quoting Ken A
I mean strong USD will benefit US hence the coordinated action to prevent it from falling? I read about coordinated actions couple posts back.
The key for every CB is to keep the currency stable at a price that balances economic stimulus with inflation.

For the USD, it is already much lower than it should be, but the Fed doesn't really give a hoot because inflation is not a concern right now. However, for Obama it is a big deal because of increased "headline" inflation in the energy and food sector. If allowed to continue, the energy inflation could find its way into core inflation as manufacturers and service providers pass on the extra cost of production and transportation to the consumer... or force them to eat the cost and make less profit thereby cutting back on expenses by laying off workers and helping to drive up unemployment.

So in essence, it is a balancing game and that is why there is a politically independent Federal Reserve charged with the responsibility of setting monetary policy.
Those who say it cannot be done should not interrupt those who are doing it
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