Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Whenever there is a crisis, you need to print money. This is the belief of central bankers. Of course this is true, as a crisis has a negative impact on commercial bank lending, and the failure of the fractional reserve system to produce money needs to be compensated with central bank money.
But the medicine will not work any more after some time, if the liquidity is not reduced when the crisis is over. Printing money is politically correct nowerdays, although the same objective could be attained with budget discipline. The budget discipline would have avoided the crisis altogether.
What I wanted to say: The announcement has pushed the Euro up above the second standard deviation band. Does this mean that more liquidity solves the European sovereign debt crisis?
Broker: Advantage, Trading Technologies, OptionsCity, IQ Feed
Trading: CL, NG
Posts: 1,038 since Jul 2010
Thanks Given: 1,713
Thanks Received: 3,863
The global central bank intervention that took place today really just confirms how bad things are becoming with regards to access to liquidity. F/X swap lines were heavily used in '08 and really don't solve the long term or even short term issues that are present currently. Now that banks have been able to convert Euros to Dollars, look for price to continue with it's downward pressure. Market is now down roughly 100 pips from the spike high of 1.3535.
Let's hope we get to see another episode of a guy nervously lie through his teeth on the verge of tears, lol! This is a timeless classic:
Fed I think timed their intervention well. If the mkt were to get below the Oct low of 1.3145, a lot of chart damage, hard for the Euro to recover. The burden still is on the bulls to show upside progress....
good call rassi, you turned bullish couple days ago!
At the open (8am GMT) there is a 20 minutes speech of Merkel. The same as Sarko did yesterday but expect more details. Not for a big move but like a coffee to wake up the sleeping market.
After the big spike up it did hold the upward trend quite good. NFP is hard to predict. If if it results in an up move, then we could break the (stronger) 3550 res and test the 3650.
Now it is about how (or not) to trade the NFP move. Good luck. I am looking for a little piece of something like the second push.