Posted on 05/06/2012 8:28:47 PM PDT by Qbert
(Reuters) - The euro tanked on Monday, breaking below its well-worn range from the past three months against the dollar after elections in Greece and France raised fresh concerns that the euro zone's hard-earned bailout and austerity steps could fall apart.
In particular, the apparent failure of two pro-bailout ruling parties in Greece to win a majority in the parliament is throwing the future of the bailout scheme for the country into doubt.
With 95 percent of votes counted, the conservative New Democracy (ND) and socialist PASOK, who have dominated Greece for decades, is seen falling short of the 151-seat threshold needed for even the most fragile majority in parliament.
"The PASOK did unexpectedly poorly in the election ... Until we have more clarity on how the coalition government will be formed and what the new government will do with the bailout scheme, the euro will stay under pressure," said Masafumi Yamamoto, chief FX strategist at Barclays.
The euro fell as far as $1.29552, its lowest since January 25, breaking below the rough $1.30-$1.35 trading band it had been stuck in since February. The euro last traded at $1.2978, down 0.8 percent from late U.S. levels last Friday.
For now, the euro has support at $1.2950, a major option barrier and the 61.3 percent retracement of its rally from its January low to a high in February, although uncertainty on Greece could overwhelm this.
"Things look really fragile. We'll have to see whether the ND can form a government," said a trader at a Japanese bank.
Another source of uncertainty, albeit a small one compared to developments in Athens, comes from France, where socialist Francois Hollande swept to victory, ousting incumbent president Nicolas Sarkozy.
(Excerpt) Read more at reuters.com ...
ping
Getting ready to go to Europe. Cheap money.
Getting ready to go to Europe. Cheap money.
Getting ready to go to Europe. Cheap money.
“Turn those machines back on!”
May 6 formerly known as the anniversary of the crash and burning of the Zeppelin Hindenburg. Henceforth to be known for the crash and burn of the Zeppelin Europa.
Oh, The humanity.
Nervous Europeans are converting their euros into dollar denominated investments. This is strengthening the dollar and is a huge capital transfer into the American economy. This will cause a temporary US economic improvement. (lucky Obama). But soon the Europeans will be imposing capital transfer restrictions. This will diminish free trade and create even worse economic conditions throughout the world.
Source please.
The clash is inevitable.
Evidently Merkel is already planning a press conference to sternly warn Hollande on this very topic.
The cracking, fracturing and flaking apart of the Eurozone should be a spectacle by summertime.
Oh, don't be silly. When have France and Germany ever...uh...
Never mind.
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