Friday, May 14, 2010

The Euro(in dollars) threatens new lows, bringing stocks down

US stocks are down, taking a cue from international markets that plunged today on Euro weakness.  The 1.24(EUR/USD) range is the danger zone than people are watching very closely, and after hitting that level it has bounced a bit, as many expected the European Central Bank to step in at those levels to defend it.  The result is that US debt of 2+ years is up on the news.

To some extent, comments by Deutsche Bank CEO Josef Ackermann may be pressuring the currency, as he cast doubt on Greece's ability to pay off money they borrow:

"Whether Greece over this time period is really in a position, to bring up the strength , I have my doubts," Ackermann said in the transcript, adding that this requires "unbelievable efforts".
If Greece were to "fall down" this could spread to other countries and lead to "a sort of meltdown," Ackermann told ZDF.

The DJIA is off 163points, as yesterday afternoon's selling picks up in earnest.

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