Sunday, 29 March 2015

"Now a good time to buy euro?"

Asks Random here.

I have absolutely no idea, if in doubt, look at a longer term chart and ask yourself whether EUR really has bottomed out yet…

My latest blogpost: "Now a good time to buy euro?"Tweet this! Posted by Mark Wadsworth at 16:16

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8 comments:

Bayard said...

Given that the ECB is keeping the printing presses busy with QE, I'd say not. I suppose it all depends what you are buying the euros with.

29 March 2015 at 18:36
Random said...

This is the point, I don't think QE will have as much of an effect. But everyone else does.
Still looks like it has not bottomed out. Unsure.
Anyway, this is insane:
http://www.theguardian.com/society/2015/mar/29/schools-parents-police-children-18-rated-games
GTA is neglect?

29 March 2015 at 18:39
Mark Wadsworth said...

B, don't think about it too hard, just look at the charts.

R, me too unsure.

As to GTA, they are mental. I cheerfully admit that I once walked into a games shop to buy the one my son had asked for and asked the man behind the counter whether it was 'age appropriate'.

"No certainly not" he replied "His mum will go mental if she sees him playing it.".

'Good" I replied, "I'll take it."

29 March 2015 at 19:01
Lola said...

Whatever the Euro does vis a vis other currencies, or what all these fiat monies do vis a vis each other, is beyond parody.

I personally think we are in some form of end game. A sort of correction to the 20th Century excesses with warfare and welfare. Bad money has been used to fund these, but sooner or later market forces will force a correction. Quite how or why or when I know not.

So in the meantime play all the currency speculation games you like, but, take some of the profit from each trade and convert it into gold (or silver).

29 March 2015 at 21:55
Mark Wadsworth said...

L, whatever happens, most people don't care. Most people either have very little in savings or they have negative savings (a mortgage).

If all cash and all debts were cancelled overnight, then by and large, we as a society would be slightly better off (the gains to the winners outweigh the pain to the losers).

30 March 2015 at 07:55
Dinero said...

the asset rich , land owners would benefit more, than the holders of cash, which I suspect are the less well off, and industrial commerce in general.

30 March 2015 at 10:52
Anonymous said...

Well if "everyone else" does think ECB QE will weaken the euro then it's best to go long on the euro since there are no more people to convince that the euro will weaken further.

30 March 2015 at 17:34
Random said...

According to Warren Mosler:
"It’s the net exports, paid for by non residents selling their currency to buy euro to spend, that drives up the euro until the net exports cease and trade goes negative. And with the rigidities/J curve/etc. the move up could be extreme, with the ECB unable to dampen it due to ideological restrictions on fx purchases."

1 April 2015 at 18:28

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