1 2 3 HERE WE GO - and the Euro - "their" radar is LIVE as the story continues

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

Hi everyone

Just looking once more - 9.30pm Australian time and found this link


Heading reads Y2K bug will savage Euro - Euro was weak in our trading time today, so I wonder if the artice is indeed having an effect.

Colin on the www.fiendbear.com site found the story; this site and Colin are an excellent source of financial material - complete with LIVE LINKS.

Talking of live - how do I make my typed out links LIVE. Excuse my ignorance, but I would greatly appreciate knowing how to do it.

Thanks in advance Pam.

-- Pamela J Lawrence (p_lawrence@hermes.net.au), July 19, 1999


What a waste of space - I really didn't mean to post the thing THREE times. I thought my message wasn't being accepted - I'll know to just refresh the page next time.

You learn something every day in this internet global shindig - and that includes the stockmarket. Thanks for all your responses to my first posting over the weekend.


-- Pamela J Lawrence (p_lawrence@hermes.net.au), July 19, 1999.

"Y2K bug will savage euro"


-- Linkmeister (link@librarian.edu), July 19, 1999.

"I'll know to just refresh the page next time."

Yup. Join the club. Who has not been there, who has not done that!

-- Tom Carey (tomcarey@mindspring.com), July 19, 1999.


I've done it, too. No biggie. Thanks for pointing out that article.

-- Linkmeister (link@librarian.edu), July 19, 1999.

Also see this Yahoo! article:


"More misery ahead as euro/yen technicals turn ugly"

-- Linkmeister (link@librarian.edu), July 19, 1999.

Following that glum (for some) news about the Euro we then turn to another page and get this:


Monday July 19, 1:56 pm Eastern Time

Dollar suffers steep declines vs euro, yen in U.S.

NEW YORK, July 19 (Reuters) - The dollar fell sharply against the euro and yen in hectic midday U.S. trade on Monday, prompting speculation of central bank action, traders said.

The euro leaped more than a full cent against the dollar to a high of $1.0336 before paring back some gains. The dollar, meanwhile, extended steep overnight declines against the yen to hit five-week lows around 118.60.

``Nobody knows why yet,'' said Mark Gargano, head of currency derivatives at First Union National Bank. ``I have to believe it's intervention -- that's all I can bet on, because there's nothing in the commentaries that makes any sense at all.''

Germany's Bundesbank, the European Central Bank and the Federal Reserve Bank of New York said they had no comment on market talk of possible intervention.

In overnight trade the yen had rallied strongly against both the dollar and the euro, as the market dared the Bank of Japan to step in to tame the yen's strength.

As U.S. trade opened, the dollar extended its declines against the yen but the euro bounced off its lows versus the greenback on what traders said was European short covering.

Some traders said that as the euro pushed above the $1.02 level, it triggered large buy stops and sailed still higher.

At midday, the euro stood at $1.0202/04, up from a weak start at $1.0139/43, and shortly thereafter it sped past $1.03 to its highest level since July 1.

Dollar/yen, meanwhile, traded at 119.10/20 at noon, down from 119.69/79 at the open before tumbling still lower.

Dramatic, sharp moves were also seen in other currency pairs, with the dollar feeling the sharp end of the stick. Sterling rocketed to $1.5783, the highest since July 6, after trading at $1.5628/38 at noon and $1.5572/82 at the start.

Dollar/Swiss tumbled to a session low of 1.5570 francs, from 1.5730/40 at noon and 1.5839/49 at the open.

After the severe price action calmed, market analysts said the moves started looking less like intervention and more like a short squeeze. Stops above $1.02 and then in the $1.0260-70 area had triggered waves of euro buying.

``Not that European officials would necessarily warn us about an intervention, but they haven't given the market any indication that weakness in the euro was becoming problematic,'' said Bob Lynch, currency strategist at Banque Paribas.

In fact, overnight the euro had weakened on comments by Herbert Hax, one of Germany's top economic advisers, who said the euro could fall below $1.00.

Another of Germany's ``Five Wise Men'', Juergen Kromphardt added after the rally that it was possible for the euro to slip below parity with the dollar, but that it stood an equal chance of strengthening from its current level.

And ECB Vice President Christian Noyer restated the bank's view that stable euro zone prices will make it possible for the euro to recover recent losses. ``The exchange rate is monitored closely as one important indicator within our stability-oriented monetary policy strategy,'' Noyer said.

The euro, has lost some 12 percent of its value against the dollar since it started trading at $1.1740 on January 4.

The euro also rallied sharply off its lows against the yen. After falling to fresh lifetime lows near 121, euro/yen bounded back above 122. But traders said shortcovering was the likely reason and dismissed market rumors that the Bank of Japan may have intervened earlier in euro/yen.

``There's probably been more talk of central bank intervention than action,'' Paribas' Lynch said.

The Canadian dollar, which had fallen sharply in early trade against the dollar, was sidelined and little changed from the open. The U.S. currency stood at Canadian $1.4910/20, against $1.4913/23 at the start of trade.

Related News Categories: currency, US Market News

-- Roberta Blackard (roblackard@juno.com), July 19, 1999.

Moderation questions? read the FAQ