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Wells Fargo Advisor Managing Director Bryan Piskorowski and Forex.com Senior Currency Strategist Chris Tevere on how the European debt crisis is impac...
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Let's get to -- -- -- ski and -- to hear -- more on how the European saga.
Is affecting your investments.
Chris I'll begin with you because you're looking at at currencies and the strategy there -- it's unbelievable to see.
How worried people are now about Spain affecting the Euro affecting the entire eurozone because now the finance minister there was saying.
Were not getting credit some windows and doors are being shot right on our fingers what is your best assessment of what happens next.
-- I mean that this has been a major problem that a lot of people have been have been speculating about for quite some time and finally now we have.
You know their finance minister out of Spain actually comes out and and has point blank they're really actually you know see that happen.
So he's pretty much is hitting the nail on the head here where this is a problem we no longer are evil axis these markets and we need some bailing out.
So now that the real question becomes tomorrow we have the ECB -- interest rate announcement.
Does the ECB do anything I think they reduce interest rates up my belief is that that they don't reduce interest rates whatsoever.
But do they do other little little small little things.
Do they you know -- -- essentially.
You know keep repose extended out indefinitely on some of the short term things -- they talk about and LT RO three.
Or are they going to be looking to wait to see what happens with the Greek elections little later in the month and the -- -- to do something more towards the end of June -- where we have the European summit.
Where I think that's probably going to be the more effective area where you'll probably want to address a lot of the fiscal issues their -- I -- -- and -- in Italy.
Brian let me go to you because everybody else all practically everybody in the world is lowering their growth forecast you -- raising and your growth -- or even even by the way and the Obama administration is lower their growth forecast.
You were -- they -- fraud to 2.5.
From 2.2 percent for the year why what gives you faith in this economy.
Yeah well one I think when you look at her personal we've lowered our global growth work forecast took our US -- -- growth forecast up big picture on this is the fact that.
-- that I've been listening to show for the last ten minutes at all what here's everything negative.
You know you look at the fact that you wanna talk about what's going on in the -- so let's remember the dollar -- crosses trade at a -- thirty to six weeks ago were above 44 today told a lot of pricing -- of negativity into this market Wallace you're here and I'm not -- all -- climbing the wall of everybody else's worry is what's going on right.
-- -- -- that when you also take a look at the US economy for all intents and purposes and right now in the developed world look but the -- for the dwarves.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Chris what's the trade them because as we look at what Brian just talked about that -- has weakened exponentially.
Over the past year I have to do we just shut the chart.
But certainly it's come off the 144 level to now more like 124.
What happens with the US dollar we -- falter on Friday -- when we got them weaker than expected jobs report.
It's I mean markets can never ever going to straight -- up and are down and and we think that you could be in for a little bit of the period of a of a dead cat bounce here.
We actually broke decade long trend line support.
Roughly around the 126 and a half -- Not coincidentally this is also the prior 2012 -- so.
We look for a little bit of a bounce back into that territory mean even towards 127 and a half.
-- -- we'd be looking to feed the Euro again looking fourteen go sub one -- and retest the prior lows around that 118 level.
Meanwhile if we get north about 132 again Apollo looked at.
Crap essentially you think the dollar is gonna surprise everybody.
Why did you short DA Euro went as you could double short by the way you do the DRR double short Euro are -- -- trade like debt.
You know actually from our perspective we think the better bet and looking at the activity in the volatility in the market place right now looks more like US equities.
On the not saying that you know it may be not nearly as aggressive -- by looking at Wells Fargo advisors we work with individual investors here and we think they're looking at this process and looking at the volatility in the marketplace.
A way to kind of position right now is to use this pullback on the equity -- vs will play a more risky currency asked type of strategies for us looking more sick of Cali and we believe -- 2013.
Will be a better economic growth here that we have here -- 2012 underweight the guys is like tac in areas like.
Men and others we have run out of time literally but short answer just one word answer from both of you.
What's a fair value for the Euro right now straight about a dollar 24 Brian for -- For us our target for this year is 123 which we touched just last weeks or run a near their right now what do you think Chris.
Look at our move down towards 115 -- in the year on right interstate have to see it but brought fiscal rescue with Wells Fargo and -- beer with four -- dot.
