this is a very detailed view
Hi Jim - yes just read it. Quantitative Easing does have a "duel" effect in favouring the rich who have investments in assets etc - but also assists unemployment and so that is so important to help grow the economy and get more people off benefits into work and paying taxes.
Many have been saying we have been in a currency "ugly contest " with the dollar and the euro for years
From an outsider view both currencies are ugly - ie not a lot of great merits going for them - but its been a case of which one as been the biggest "faker".
For the last few years the Euro has been deservingly criticised - whilst many have always looked upon the dollar as the "safe haven". However the real truth is they are probably as bad as each other - its just that the US always do a better "cover" up and have been patching over the cracks for far too long.
Lets just hope for both the US and Europe we can start making progress and both economies will come out of this world wide recession and start to flourish again
Interesting given how much pricing went into QE3, there is no statistical evidence however QE1 had the biggest effect (adverse that is) because it was the least priced in. This time it was so far the most priced in QE intervention, time will tell.
So now 3 CBs are printing unlimited money - each for different purpose: ECB, FED and SNB, only BOE and BOJ are last to join - wonder how long it takes for them. Problem is that if both ECB and FED are printing unlimited its gonna be difficult to predict long term eur/usd. For now when ECB announce printing its good for eur and if FED its also good for eur, but I dont see how its gonna last, printing is after all that - printing. So eventually ECB printing will have negative effect on eur but at the same time FEB will counter it. If u thought last year and until now recent price action was ugly, I guess now its gonna be even worse. Still, I would say based on monthly chart that eventually eu should reach at least around 1.35 but probably more like 1.4-1.5 and then either this was just a consolidation and more up or another harmonic pattern and back down. regards
here is another read came into my orbit
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