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EUR/USD Daily Video, July 18, 2012

Discussion in 'Sive Morten- Currencies, Gold, Bitcoin Daily Video' started by Sive Morten, Jul 18, 2012.

  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Good morning,
    if market will show price action as we expect - we probably at the eve of move to 1.20:





    The technical portion of Sive's analysis owes a great deal to Joe DiNapoli's methods, and uses a number of Joe's proprietary indicators. Please note that Sive's analysis is his own view of the market and is not endorsed by Joe DiNapoli or any related companies.
     
    #1 Sive Morten, Jul 18, 2012
    Lasted edited by : Aug 15, 2015
  2. onenikos

    onenikos Corporal

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    Dear Sive and All
    Those of you that have red my comments in the past know that I am of the opinion that the EUzone is disintegrating. One of the most significant news pieces that has not been widely publicized or commented came from an interview of Christian Noyer, a governor of the Central Bank of France by Handelsblatt. He states:“We are currently observing a failure of the transmission mechanism of monetary policy. From the markets’ perspective, the interest rate facing individual private banks depends on the funding costs of the state where they are domiciled and not on the ECB overnight interest rate… Hence the monetary policy transmission mechanism does not work. We did our best to face up to this phenomenon which is unacceptable for a Central Bank in a monetary union. In future we cannot rely endlessly on a system where the Central Bank is injecting massive liquidity to the banking system, boosting hugely its balance sheet.” This type of news does not create the familiar spikes, but it is indeed noted by the large players. What in fact Noyer says is that the 1 trillion EUR of liquidity injected in the EUzone Banks (LTRO) has failed to fix the problem. Interest rates will remain high even if the ECB will reduce its official rate to zero.
    Best Regards to all
     
  3. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Thanks Onenikos for that valuable info,
    correct me if I'm wrong, but Greece will have to pay back ~3.5 Bln EUR in August to ECB. I have some doubts that it will able to do this. If Greece will fail - future transfers in a row of ECB program will be under question.
     
  4. onenikos

    onenikos Corporal

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    There seems to be no problem with the 3.5, (from what the latest talk is). What seems to be the real problem is the close to 14 billion of black hole that has to be covered by the end of the year. That will take a miracle!
    Peace
     

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