How Europe Sees Itself
- September 15th, 2011
After Trichet’s impassioned press conference last week, the ECB lens on reality is instantly my favorite.
As as a trader, the Market lens is spot on. None of us know why the euro is rallying. Yes, it benefits from USD selling. Yes, it benefits in risk-on environments. Yes, it has a higher interest rate than most of the G7 at 1.50%. But given the headlines, just this week alone, on the sovereign debt crisis, it is unbelievable that the single currency doesn’t just blow up like a bad science experiment. But trader take heart in this. While “Hear no evil, see no evil, say not evil” is not a very good monetary policy, it certainly works for the markets. We always remember that the markets can remain irrational longer than we can remain solvent.
- What’s Next for Europe? (CNBC)
- Does the Euro Have a Future? (George Soros)
- Eurozone default is not synonymous with breakup (Credit Writedowns)
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Lydia Idem has been investing in equities for 16 years and trading currencies actively for 5 and a half years. Her trading style is simple and short term. With a special feel for sterling, Lydia trades almost exclusively the GBPUSD and EURGBP. You can follow Lydia on Twitter and StockTwits... (more)