FOREX - Trends, Forecasts and Implications (Episode 16: June 2012) - page 329

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On the EUR - has there been a return to the broken trend now? Is it safe to buy? ))
Analysts at the US financial blog Zerohedge made an interesting observation about the EUR/USD pair.
Yesterday the European Central Bank announced that over the past week its balance sheet has increased by EUR 31 billion to a new record high of EUR 3.058 trillion. This increase is mainly due to an increase in main refinancing operations (MROs). In contrast, the Fed's balance sheet continues to remain unchanged or is slightly decreasing.
The authors of the blog point out that the EUR/USD exchange rate usually hinges on the balance sheet ratio of the Fed and the ECB. In recent months, however, this trend has broken down as markets have been in constant anticipation of the Fed announcing a new round of QE. A fair exchange rate for the euro according to this method is now $1.1600.It seems to me to buy with the eu only after reaching the level of 1.235. Who thinks so?
Will it be there, if it is, will there be conditions for buying? Who thinks what?)))
http://www.zerohedge.com/news/ecbs-balance-sheet-hits-new-record-highs-fair-eurusd-value-900-pips-lower
It seems to me to buy with the eu only after reaching the level of 1.235. Who thinks so?
It's hard to say, I doubt anyone knows for sure right now.
I for one am waiting for the quasi crazy south)