Bearish EUR factor.
German Exports Slump Most Since 2009 Recession as Risks Rise http://t.co/6W1hYIVtpz via @jrandow pic.twitter.com/30ScI0k8ZB
— Forward Guidance (@ecoeurope) October 8, 2015
German Exports Slump Most Since 2009 Recession as Risks Rise http://t.co/6W1hYIVtpz via @jrandow pic.twitter.com/30ScI0k8ZB
— Forward Guidance (@ecoeurope) October 8, 2015
9 comments:
Soon everybody in the eurozone will be needing 250,000 USD loans to live Dr Purva ...
Seriously though, the economy is again slowing down, projects drying again and just when construction was starting to recover a bit it's again slowing down.
2016 is looking to be a "nice" year... seems time for worldwide recession again.
Ha even the spam is revealing these days...
Ignacio this may be price driven... iow the German product is still priced too high compared to other sources (I'd have to think Asian...)
So they have to lower their prices to maintain share.... still an IF... if they do I would expect continued weakness in the EUR vs. USD if the export hit here was significantly to their US markets....
This is the setup now. We need to be shorting EUR.
With the global economy weakening, I would expect central banks to loosen and let their currencies fall in a race to the bottom. I would not be surprised to see China float as it rebalances.
Global deflation in the making?
Tom there has already been a pretty big deval in the EUR it was at like 1.40 and now it is down to like 1.12 having been as low as 1.05...
so as far as the CBs go, IF they are actually involved in this (imo they are not here in the EUR/USD) then they have devalued by 20% and now exports are again falling by this measure reported here....
Bearish USD case is the possibility of US default next month... so lots of cross-currents...
We'll see how hard the neo-liberal bug has infected Germany if they respond to this with additional price discounting and throwing more people out of their jobs, er.... I mean, "HR cost reductions...."
USD bearish also: Oil back pushing at $50 level...
Well I have a "short dollar" trading bias right now.
This is before the VW scandal. It might get alot uglier too.
October is a great month for commodity currencies against usd!
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