EUR: Turning point at hand?

[rsi80]

Will Jim O’Neill have to eat his words or be shown as prescient?

http://www.bloomberg.com/apps/news?pid=20601087&sid=a1fXeQHg8Y_s&pos=4

The overwhelming bias against the euro currently in financial markets may be a sign that the currency is about to rally, Goldman Sachs Group Inc. Chief Global Economist Jim O’Neill said. Only three of 600 people he spoke to recently predicted the currency would strengthen, he said.

“In my experience of being in the foreign-exchange market for 29 years, that makes it virtually guaranteed that the euro isn’t going to go down much further,” O’Neill said in a Bloomberg interview from his London office yesterday. He predicts the euro, currently around $1.2375, may fall to as low as $1.20.

 

[Ivanovich]

O’Neill is a total moron. If you've been following his calls, he's been wrong on the whole Greek crisis.

Now, that being said, the EUR is vulnerable to a massive short squeeze given the positioning in it right now. But year end? 1.18 or lower.

 

[risky63]

as far as cycles go....I think we might get a little pop.
pa today from 1am-4pm covered alot of ground.
we'll see.

 

[newguy05]

i think we are due for a short term bounce, overwhelming negative on the euro everyone think it's going to par with the dollar. Of course i said the same thing about lehman when it was around 3.5 day before the weekend hopefully europe > lehman

bought some june atm calls on fxe....

 

[335ifurby]

... well if the euro fails the dollar fails... and of course the U.S. wouldn't let that happen... this is not some piss poor Latin American country we're dealing with... Its the EU

 

[newguy05]

Quote from 335ifurby:

... well if the euro fails the dollar fails... and of course the U.S. wouldn't let that happen... this is not some piss poor Latin American country we're dealing with... Its the EU

the only thing is this is the first real crisis of the euro since it was established, so it's still an experiment so to speak.

if germany decide to abandon the euro and going back to printing their own mark, then france does the same etc.. does anyone know what will happen to euro if that happens? i assume it will crash...