The strong rally that was perfectly programmed to Nov 30 took the Euro and many indexes from the lows into a daily uptrend which still is in place. Any trials to change even the small 2 hour trends to downside has been changed to upside when trading volume has been slow. I have seen the central bank perform in interventions since the mid 1980:s and no one of the private players don't even try to fight the central banks. There has been intervention when for instance the American FED and the Japanese BOJ have stood against each other when the yen has fallen too much against the dollar but otherwise disagreement seldom occurs to my knowledge.
Now we are playing with the Euros live or die. We live in 2011 with all the technology in the world in the hands of all central banks and the governments in the world with one goal, to avoid any sort of panic if the Brussels talk does not go well. I think that we will not see a Euro collapse, at least not this month. When it comes to the stock and bond markets I believe that there are instruments and connections that can keep them above a certain level as well in the low turnover month of December.
There have been many Decembers since 1983 which I have watched where there have been problems and a break on down side or upside overdue - but not so serious as the current - but the first trading day of January it has started with a tremendous power down or up. What will happen now I don't know.
What I am trying to say I think is that we should not be surprised if a bad out come on Brussels does not immediately is reflected in the Euros behavior.
America has seen the Euro rise from 0.50 to 1.60 the last 40 years and the dollar fall from 340 to 80 against the yen. U.S. cannot exist with a strong dollar against these currencies so the US will do everything to keep the dollar weak. US has tried to get the Chinese currency to be traded freely as well but China knows that they cannot beat America when it comes to trading and pushing their currency up a few hundred percentage points.
Germany's only chance to get their currency lower has been to have the Euro instead of the Deutsch mark.To share the currency with low exporting countries.
Now we are playing with the Euros live or die. We live in 2011 with all the technology in the world in the hands of all central banks and the governments in the world with one goal, to avoid any sort of panic if the Brussels talk does not go well. I think that we will not see a Euro collapse, at least not this month. When it comes to the stock and bond markets I believe that there are instruments and connections that can keep them above a certain level as well in the low turnover month of December.
There have been many Decembers since 1983 which I have watched where there have been problems and a break on down side or upside overdue - but not so serious as the current - but the first trading day of January it has started with a tremendous power down or up. What will happen now I don't know.
What I am trying to say I think is that we should not be surprised if a bad out come on Brussels does not immediately is reflected in the Euros behavior.
America has seen the Euro rise from 0.50 to 1.60 the last 40 years and the dollar fall from 340 to 80 against the yen. U.S. cannot exist with a strong dollar against these currencies so the US will do everything to keep the dollar weak. US has tried to get the Chinese currency to be traded freely as well but China knows that they cannot beat America when it comes to trading and pushing their currency up a few hundred percentage points.
Germany's only chance to get their currency lower has been to have the Euro instead of the Deutsch mark.To share the currency with low exporting countries.
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