Risk markets feeling bad - JPY stronger across the board, AUDUSD down with gold. Friday's "EZ periphery central banks must sell their gold" is a major reason, so is the US warning on Japanese monetary policy. I think it is too early for a 1998-type of a scenario in the JPY (JPY strengthened by 12% in a matter of days). Perhaps the G20 and IMF meetings on Thursday and Friday will put a bottom to the EURJPY and USDJPY. And, oh yes, bad views on Europe, but that's nothing new.
Previously on MoreLiver’s:
Current Specials
EUROPE
German ghost of inflations past haunting
European stability: Posen – MacroScope
/ Reuters
What did the former UK
Monetary Policy Committee member mean? Quite simply, that the types of
structural economic changes that Germany has been pushing on the euro zone are not only
destructive but also bound to fail, at least if history is any guide.
The non-puzzle of peripheral pain – Free exchange
/ The Economist
And so the euro area
might just choose to lock up bits of euros here and there and selectively
reduce their value. That is what happened to many of the euros locked up in
loans to the Greek government. And it is what happened to many of the euros
that were sitting in insured deposits in Cypriot banks. Who knows where it
might happen next! (Nowhere, say euro-area officials, entirely unconvincingly.)
The rub is that doing something like that on the scale necessary to end the
crisis probably, basically, more-or-less means the end of the euro area.
Why euro zone bond yield ‘convergence’ may be
something to fear – MacroScope
/ Reuters
In normal
circumstances, this might suggest markets are no longer discriminating between
the risks associated with different member countries’ bonds. But analysts say
the recent convergence is based on a precarious belief of ECB action rather
than any real improvement in economic fundamentals.
Privacy concerns and
the fear of losing big money from abroad are the main reasons why Austria is still holding out against an EU scheme to
lift bank secrecy in Europe.
GOLD
Spotted, the once in a 2 million year ‘Golden
Swan’? – alphaville
/ FT
Gold: The fear bubble bursts – Felix
Salmon / Reuters
Gold Sinks Most Since 1980, Stocks Sinks Most
This Year – BB
The Price of Gold Is Crashing. Here's Why – Businessweek
Gold Plummets By Most In 30 Years, Stocks Have
Biggest Drop Of 2013 – ZH
Gold Crashes Most in 30 Years … What Does It
Really Mean? – Washington’s
blog
What Happened The Last Time We Saw Gold Drop
Like This? – ZH
Outflows in Gold ETFs Surge as Traders Bolt – WSJ
Despite Gold Selloff, Options Traders Bank on
Rebound – WSJ