Realcent.org

As I watched this morning over a cup of coffee, big drop below 1.22. Looks like some attempts to support it at 1.219 but this is the first drop below 1.22 in two years, and except for that other low, the lowest it's been in 8 years, since the euro build-up. A drop below 1.20 would indicate a significant loss of faith in the thing. It's on the edge.

7/24 Update - continues to trend down, as one might expect in the absence of major intervention. Eventually the flight to other assets could be unsupportable by Fed buying Euros with USD as even the Fed might not want provide that much support for Euro.

I buy a large amount of materials out of Italy and much of it I buy with the Euro. So this drop has really helped out with my margins. No one is getting their prices lowered right now though. I am sure that it is only a matter of time before they raise their prices in reaction to increases in their raw material costs because of their lower buying power. If the Euro would just stay right here at $1.22, I would be a happy camper.

Drop continued until "something" happened about 830am this morning as the Euro was drifting badly back down into the 1.216's. I suspect someone feared the direction, and bought a bunch of Euros - probably the Fed in a USD - Euro transaction (great, now the US owns more Euros) - just because they can - there is no limit to the amount of USD they can print. All supposition on my part. But some action raised the Euro from 1.216 to 1.223 instantly. What was cause versus affect I'm can't be sure of, but the European market responded positively within minutes. and the US market then opened on a bump up.

7/24 Update - continues to trend down, as one might expect in the absence of major intervention. Eventually the flight to other assets could be unsupportable by Fed buying Euros with USD as even the Fed might not want provide that much support for Euro.