User: Idiot Wind: Evil Plans: EURO Bounce?(by Evil Plan 31.0) - Slope Of Hope with Tim Knight
EURO Bounce?(by Evil Plan 31.0) - Slope Of Hope with Tim Knight
Evil Plan 31.0
Compelling reasons for a EURO Bounce:
1. Too many EUR/USD shorts on, a short Squeeze is way overdue.
2. The Merkozy meeting tomorrow may well shed further light on the final directives/details of the ultimate EU policy response. The Franco-German talks come ahead of a meeting of European finance ministers Jan 23rd and 24th, and EU summit Jan 30th to iron out details of the fiscal plan and steps to reinforce a financial firewall around the economies with debt troubles like Italy and Spain.
3. The need to avoid a potentially disorderly devaluation of the EURO, which could put into question the very validity of the continent's embattled currency.
4. Several large Sovereign bond auctions are set for next week. A collapsing EURO could further undermine these already tenuous funding requirements.
5. Benny & tiny Tim do not want to completely abandon the planned USD devaluation needed to escape the devastating toll of the massive debt obligations on the US economy.
6. The stealth QE just recently underway via the FED/ECB currency swap lines, which effectively transfer/sell USDs to buy/convert them into EUROs, is supportive of the EURO.
- By: Idiot Wind
- On: 7/22/12 12:19PM
- Viewed by 9 SocialTraders
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