See below. Now guess what could happen to the euro. This table indicates yield of Greece government bonds.
Now look at the interest due next year.
Now if the Swiss Franc route is now shut. What do you have left? SHORT THE EURO !
If you can play this via option, do this now....before the volatility increases.
European Central Bank President Jean Claude Trichet committed a major policy error by raising interest rates for the Euro twice in the first half of the year. The next move on interest rates has to be down, possibly as far as to zero. American interest rates are already at zero and can’t go any lower. This is all hugely Euro negative and dollar positive.
Now look at the interest due next year.
Now if the Swiss Franc route is now shut. What do you have left? SHORT THE EURO !
If you can play this via option, do this now....before the volatility increases.
European Central Bank President Jean Claude Trichet committed a major policy error by raising interest rates for the Euro twice in the first half of the year. The next move on interest rates has to be down, possibly as far as to zero. American interest rates are already at zero and can’t go any lower. This is all hugely Euro negative and dollar positive.
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