Tuesday, May 4, 2010

EUR/USD will break 1.30 soon!



EUR/USD will break 1.30 soon and trade down to the 2005 low of 1.27 on it's way to parity against USD and possibly even a retest of the 2001 lows of 0.80.

3 comments:

bubbleRefuge said...

Mike you've got to exploit this baby. You called it. Where is peter schiff?

Mike Norman said...

Yeah, where is Schiff?

googleheim said...

If we hit parity, is it time for a new reserve currency afterall ?

How does this fair China ?

China will now take it's part II of scooping up companies and use their Tbills to go shopping in Europe ?

So much for an asian tiger meltdown part II.

we know that the ECB has the power to create Euros and spend them in Portugal and Greece. They however are not doing so.

That means they are doing a different trick. Hyperdeflation while smoke screen plays about hyperinflation.

They will point inward with a deflated Euro so that they can prevent capital flight by pointing their finger outside claiming how expensive the U$D is.

It is a matter of relative perspective.

WHich chinese companies are ready to pounce and buy up European companies ?

The only thing that can protect EU is their socialism.