Tuesday 12, February 2013 by Matein Khalid

Currencies -- The macro case for Euro 1.30?

Bazookas often do not need to be fired to shock and awe their targets. This was the case with Mario Draghi’s commitment to do “whatever it takes” to save the Euro via a series of “big bazooka” monetary weapons. As risk premia plummeted and the German Grossbanken/French grands banques repayed emergency loans at a time when the Bernanke Fed and the Shirakawa BOJ expanded their balance sheet, the inevitable outcome was a spectacular rise in the Euro against the US dollar and the yen.