They’ve done it again! But this time it must be a better “solution” to the EZ debt problems, obviously it will stop the contagion risk to other indebted nations such as Portugal, Ireland, Spain and Italy…..(let’s stop with the list here before we have to start mentioning others than the peripherial economies)
So now all is fine and dandy, and we can again start worrying about the US debt situation, and of course give the old greenback a real good whacking….again….and again….and again….
The majors responded pretty well to the good news (that our politicians are still cleverly managing the art of making money out of nothing) and so the EUR, GBP, AUD and especially the NZD rallied against the USD, not only that but also the CHF. Gold was also down. There’s only a few little worries. One is the JPY which seems to be hesitant in giving back much of its latest gains, and the other one is the EUR/USD daily chart where the 13 day EMA somehow failed to turn up.
My worry is that the longer CBs and governments keep meddling in the economy and finances of the world, the more tension is going to build up in the markets and some day in the future we are going to see something very ugly when the truth and the true value of everything will be finally seen.
