Saturday, 16 July 2011

Tug of War Week

Goldman Sach's Noyce provides some good insight into a tumultous week ahead.

Next week:
  • July 21 the Euro parliament will convene for an emergency meeting at which some speculate Greece's fate may be decided, leading to a "soft" or "transitory" default which will could lead to a big EUR selloff.
  • July 22 in the USA is the deadline by which Congress is supposed to reach a decision (or not)  in order to meet the August 2 debt ceiling deadline, if no solution is reached in the next week, it will be the US Dollar's turn to possibly plunge.
  • And, then there is Italian and Spanish default contagion risk thats brewing...


If they both sell off the main money flow could be to the Swissie (Swiss Franc - CHF).

A follower emailed me a valid point:
You forgot , sine qua non currency - GOLD. The last man standing.
(thanks Paddy, very remiss of me)

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