Time to buy the DOLLAR?

[flow5]

Is that what I said? How long did you trade the Deutsche Mark?

Germany's goal has always been to maintain a strong currency. That's the inference.

[flow5]

"For the first time ever, a clear majority (60%) of Germans no longer sees any benefits to being part of the Eurozone, given all the risks, according to a poll published September 16 (FAZ, article in German)."

===============

A new Deutsche Mark in the works?

[verrip1]

Flow5 wrote that Germany does not sell its gold. That's not true.

The German Federal Government mints and sells gold coins made from gold provided by the Bundesbank [check out the Bundesbank website www.bundesbank.de/index.en.php ] Ergo, Germany does sell gold.

Please do try to avoid inaccurate overgeneralizations.

[flow5]

That of course, was never the issue. 17 Eurozone member states, & one with more gold (numismatic), coins than the others? That makes the Euro stronger vis a' vis its other trading partners?

Well in my 20 years + of currency futures trading, the Central Bank's gold sales have never been pivotal. I outlined the salient factors. You jumped on the wrong conclusion.

[verrip1]

No. You overstated, and were wrong even when I offered you wiggle room. Unfortunately, the high esteem in which you hold yourself prevents you from manning up when you are wrong.

Too bad, Mr. Expert.

[dothedd]

debtwall.org/

[flow5]

The U.S. sells numismatics too. Big deal.

[flow5]

Monday, September 19, 2011

"Germany and the International Monetary Fund (IMF) , whose value would be approximately 134,000 million (93,800 million euros) the current price. However, financial experts warn that the SALE OF GOLD RESERVES WOULD NOT SOLVE THE STRUCTURAL PROBLEMS that exist and which would only be “a drop in the sea,” while dynamite investor confidence, according to analyst Commerzbank raw materials, Eugen Weinberg"

[flow5]

"The Deutsche Bundesbank, Germany's central bank, is the most influential member of the European System of Central Banks. With a hefty 3,412.6 tonnes of gold reserves, which are valued at about $113.2 billion at current prices, Germany's gold accounts for almost 70% of the country's total foreign reserves"

"Axel Weber clarified when he stated, “Gold is a useful counter to the swings of the $”

===============

Weber's statement was in 2007. And it is true that if Germany did use its gold reserves it could influence the Euros' exchange rate vs. the U.S. dollars'. But the point is that they don't & haven't which is pertinent to the thread's topic & currency trading.

===============

This is the ECB agreement:

PRESS RELEASE
7 August 2009 - Joint Statement on Gold
European Central Bank

Nationale Bank van België/Banque Nationale de Belgique

Deutsche Bundesbank

Central Bank and Financial Services Authority of Ireland

Bank of Greece

Banco de España

Banque de France

Banca d’Italia

Central Bank of Cyprus

Banque centrale du Luxembourg

Bank Ċentrali ta’ Malta/Central Bank of Malta

De Nederlandsche Bank

Oesterreichische Nationalbank

Banco de Portugal

Banka Slovenije

Národná banka Slovenska

Suomen Pankki – Finlands Bank

Sveriges Riksbank

Swiss National Bank

In the interest of clarifying their intentions with respect to their gold holdings the undersigned institutions make the following statement:

1.Gold remains an important element of global monetary reserves.

2.The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted programme of sales over a period of five years, starting on
27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes.

3.The signatories recognize the intention of the IMF to sell 403 tonnes of gold and noted that such sales can be accommodated within the above ceilings.

4.This agreement will be reviewed after five years.

European Central Bank

[maui1]

maybe the aussie dollar...........but surly not the usa dollar

just because the euro stinks, does not make the usa dollar smell like a rose......because it stinks to, not as bad as the euro, but stinks just the same.

[flow5]

U.S $ INDEX (NYBOT:DX
77.291 +0.256 (+0.33%)

Just like the game of chicken.

"NEW YORK (AP) -- Stocks sank Monday as optimism faded that a bailout package for Greece would take shape in time to keep the country from defaulting on its debts"

[flow5]

US Dollar
77.348
+0.313 +0.40%

Gold
1781.10
-41.86 -2.30%

Did Germany sell gold?

[flow5]

U.S $ INDEX (NYBOT:DX)
77.750 +0.408 (+0.52%)

[usaone]

Dollar up and Gold down Flow.

[flow5]

78.669 +1.327 (+1.71%) smokin!

That's what operation twist was specifically designed to do in the early 60's - curb gold conversion & prop the dollar vis a' vis Europe.

[flow5]

Operation Twist will just increase our trade deficit & ultimately boost the price of gold in terms of dollars.

[jarhead1976]

Great call on the dollar flow5. respects

[flow5]

BBA LIBOR USD 3 Month (US0003M:IND) VALUE: 0.360 USD (up from 0.250 in July)
=============
Euribor-OIS Spread Rises for 3rd Day to Highest in 2 1/2 Years
By David Goodman and Keith Jenkins - Sep 23, 2011

A measure of banks’ reluctance to lend to one another in Europe rose for a third day to the highest since March 2009.

The Euribor-OIS spread, the difference between the three- month euro interbank offered rate and overnight index swaps, climbed to 89 basis points as of 5:10 p.m. in London, from 85 yesterday, Bloomberg data show.

...The cost of converting euro payments into dollars, measured by the one-year cross-currency basis swap, was little changed at 75 basis points less than Euribor, the biggest gap since December 2008, Bloomberg data show.

The three-month cross-currency basis swap was 105 basis points below the euro interbank offered rate, compared with 106 basis points yesterday. The cost was 112.5 basis points under Euribor on Sept. 12, when the swap was the most expensive since December 2008.

The ECB said financial institutions increased overnight deposits. Banks parked 136.5 billion euros ($184 billion) with the Frankfurt-based lender yesterday, compared with 121.4 billion euros on Sept. 21 and 197.8 billion euros on Sept. 12, the ECB said.

Euribor Rises
Three-month Euribor -- the rate banks say they pay for three-month loans in euros -- rose to 1.537 percent from 1.536 percent yesterday. One-week Euribor increased to 1.18 percent from 1.17 percent.

The London interbank offered rate, or Libor, for three- month dollar loans rose for an eleventh day, climbing to 0.360 percent from 0.358 percent, according to data from the British Bankers’ Association. That’s the highest rate since Aug. 16, 2010.

The TED spread, or the difference between what lenders and the U.S. government pay to borrow for three months, was little changed at 36.5 basis points, the highest since July 2010, Bloomberg data show.

The cost of insuring against default on European bank debt plunged, with the Markit iTraxx Financial Index of credit- default swaps on the senior debt of 25 banks and insurers dropping 20 basis points to 282, according to JPMorgan Chase & Co. An index on subordinated index was down 15 basis points at 525.

Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.

www.bloomberg.com/news/2011-09-23/euribor-ois-spread-rises-for-3rd-day-to-highest-in-2-1-2-years.html

[usaone]

Dollar has out performed Gold in the short term.

[Aman A.K.A. Ahamburger]

Good call so far. Wonder how the dollar will do now that the EU has such a high rating?

[usaone]

Dollar should start another leg up. And when Ben raises rates....sooner than we think...look out.

[Aman A.K.A. Ahamburger]

I would have to agree with ya, big surprise, right?