Monday, June 28, 2010

Monday FX Brief: Stimulate or Retrench -- Seeking Alpha

(c) 2010 F. Bruce Abel

According to Cramer us "pajama traders" key off the Euro to decide whether to buy or sell the American stock market.  So here's today's report on the Euro after the G-20 meeting in Toronto over the weekend, which Krugman says was so devastatingly bad, and I agree.

By the way, if the Euro is up on a given day then the pajama traders buy the American market, right?

Monday FX Brief: Stimulate or Retrench -- Seeking Alpha: "Euro – The euro is a little weaker at $1.2336 this morning as investors are swift to side with a long dollar position on account of the apparent likelihood that fiscal stimulus will stroke the growth nerve-endings and help lengthen the recovery process. However, as German Chancellor Angela Merkel pointed out, thus far the stimulus measures have done little to alleviate the rate of U.S. unemployment. And without addressing Europe’s fiscal shortcomings, the spiral would continue to drag the Eurozone lower. The euro weakened against the Japanese yen to ¥110.28 and also against the British pound to 81.94 pence."