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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (20172)	12/15/2011 2:01:41 AM
From: ahhaha	Read Replies (1) \| Respond to of 24758

Re: LIBOR = .28%. Dollar rally unsustainable 14-Dec-11 08:51 pm You're probably right but the dollar will churn for awhile at its current level. LIBOR has become more of a derived rate subordinated to EURIBOR. Since 2008 the British housing market has rendered LIBOR less representative of pressures on liquid overnight international dollar holdings. EURIBOR looks like it has peaked. In fact, it started down last Friday very likely related to the uninspiring news coming out of the EU "summit" in an unknown way. That might be related to the fact that Gentile denied that IMF support was needed and denied that EU bailout would be provided. The G6 CB arrangement made the previous week for purposes of reinforcing swap lines and lowering the rate may be far more robust than anyone thinks. This would be corroborated by the $51B FED has extended in the first week of this accommodation to the ECB. Moreover, Greece's sovereign debt may have put in a KRD. Hard to believe it, but it is the first time we've had anything near a slowing in the advance in that rate for a long time. Also, the Italian bond is near critical support but as I mentioned yesterday, there's no intensity in the move.It's "luffing", sure sign of a move built on exhausted psychology only. Then there's Portugal. Whereas, its CDS swaps are near a critical level, they aren't progressing. These weak sister points suggest a short covering rally is near especially in light of all the market orders to go short launched over the last several days.