Euro showing signs of life? Update: Not anymore.

Originally posted 4-21 at 9:36 PM.

Update 4-22 5:10 PM: The three red trend lines drawn in the chart below were all broken today.
It looks as though there some very mild improvement in the short term picture of the euro. Relative strength, price and MACD for CurrencyShares Euro (FXE) all show higher lows over the past month. But at current levels, it is likely that a break of this short-term trend will take the euro to new lows and touch off a new round of selling. On the flip side, the euro could consolidate and move higher, with the current trend continuing up to around $138 or roughly $1.38 for the euro.

Update 4-22 8 AM: Stories such as the one out today are why the euro will struggle to reach even slightly higher levels: Greek deficit spiked to 13.6 percent of national income in 2009, more than previous estimate

Another update 5:17 PM: From FT Alphaville, The Germans and the Greeks
The Free Democrats who share power with Angela Merkel’s conservatives are now calling for Greece to take further austerity measures or leave the eurozone.

And oh by the way update: Euro Sinks on Moody's Downgrade of Greek Debt
Good old ratings agencies. What is the use of ratings if they give overly optimistic ratings and then downgrade only after it becomes obvious that there's a problem? All they're good for is causing the problem to accelerate.

No comments:

Post a Comment