Europe

Highlights We are seeing some respite for the euro but the underlying bearish forces have not gone away and this latest bounce is a good selling opportunity. The single currency rallied to a high $1.2437 in early European session (nearly…

The fall in the euro is not completely accidental. Indeed, many in the Eurozone see the decline as an opportunity instead of a sign of weakness. Nevertheless, it is not clear to me that the Greeks or the Spaniards will gain from the decline…

Because of short covering, we may eventually see a much larger reversal in the Euro than we have seen to date. And although I recently noted that the Euro was still overvalued on a purchasing power parity basis, nothing goes down in a…

Highlights Euro weakness persevered into the European session, with Germany’s naked short-selling ban announcement still in the limelight (see below). The euro has broken through the $1.22 mark, down to a low $1.2144 in Asia -  a…

A short story inspired by the German shortselling ban. Once upon a time there were four little pigs and the time came for them to leave home and seek their fortunes. Before they left, their mother told them "Whatever you do, do it the…

Yours truly is actually a macroeconomist, indeed with a knack for financial markets, but still; a macroeconomist nonetheless. However, you would not have gotten that impression from the writings here end last week where I worried a lot…

Highlights The US dollar was stronger vs. the majors, as the euro was unable to hang on to its recent gains above 1.24.  Euro selling accelerated after news of German regulator BaFin banning some short sales (see below).  Euro…

Obviously, the FT's Martin Wolf has been listening to the same preacher I have because he is singing my song.  In today's FT he writes about the recent Beggar-my-neighbour eurozone policy and how the policy response in Europe has…

The following is a guest post by Polyvios Petropoulos, a former university professor of economics and management in the US. Petropoulos contends that the austerity package drawn up by the IMF is not credible and that everyone knows Greece…

Highlights The euro has recovered from yday’s low, but the risk remains strongly tilted to the downside and so this is a good selling opportunity (see below). The EU Fin. ministers have disbursed the first tranche of loans to Greece…