Stock Market Today : May 21 - 25 - Page 4

Quote:

Originally Posted by MaX PL 

its not really about the debt as it is the value of the euro.  the UK is not in the eurozone.

 

The value of the euro is another thing I've been wondering about, specifically the  EURUSD.

As I understand it the value of the euro to the dollar is unlikely to reach a 1:1 relationship as long as central bank rates are what they are.

This is due to swap rates, i.e. you get paid / have to pay the rent differential for holding a currency overnight.  With rates the way they are you get paid for holding long euro and have to pay for holding the dollar long.

This should mean that EURUSD won't reach parity until rates change or people panic and really think the euro will cease to exist, and I don't think we're quite there yet.

Is there any way of figuring out the lowest the euro is likely to go based on current rates?

The ECB on the other hand are unlikely to want to lower the rates very much since that would make euro denominated bonds less appealing, which would mean higher rates on them. This is the last thing the European governments want at the moment.

This will make it harder for any European easing to be done, which basically is bad news for the European economy. And since we're all global it could also mean bad news for the US economy.

Am I correct in the above assumptions or have I missed something? And if I'm right shouldn't it break the EURUSD / stockmarket correlation to some extent, at least for the European markets?

Euro won't reach 1:1 because of the awesome inflation that would cause. You can buy a car in Germany for 20k euros that would cost 30k dollars in the US. 1:1 = either inflation in Europe or everyone moves to Europe which would indirectly cost inflation due to demand = inflation in Europe

Inflation = depression

Depression = world economy goes bye bye

world economy goes bye bye = well i dunno. i can't explain it but this image can

I haven't compared car prices but for most other things it seems like European pricing is more like products going for 200 $ are going for 200 € over here.

And looking at it from ground level it feels like inflation has been pretty awesome these past years.

Well, FB just broke 38 FWIW.  Took the elevator down all the way to 37. 

just broke 37

Those are the retail facebook investors who bought the IPO. 

Futures also making their way down a bit at this point.  Still green. 
 

The dollar is at its high and the market is green?

Quote:

Originally Posted by Mr.Mike 

The dollar is at its high and the market is green?

Futures has some volume to the downside

theyre crashing the markets before it opens!!!

With the way FB is trading pre market you'd think nasdaq futures would be the weakest 

Leave FB alone! LOL! So some respect

Quote:

Originally Posted by rando 

Surely FB must be the fastest company ever to lose $10BB in market cap following their IPO... ?

webChris liked this.

rising and closing above 1313 is the key for today on the SPX, although doing something like that is highly, highly unlikely but would be significantly bullish  

First married fight for Zuckenburg? She married a guy worth $19.2bln on saturday, he is worth less than $16.5bln in 2 days, just sayin!