The euro experienced a staggering slide in 2010, but it wasnât as impressive as many pessimistic forecasts would let us believe. Still, the debt problems in the European Union persist and the crisis is spreading, therefore 2011 doesnât look like a very good year for the shared European currency. The potential problems in the so-called PIIGS countries (Portugal, Ireland, Italy, Greece, and Spain) have grown into a full-fledged crisis, which tends to spread across … “Euro May Strengthen, But Not in 2011”
Month: January 2011
Decline of House Prices Undermine British Pound
The Great Britain pound went down today after the House Price Index of the Halifax Bank of Scotland dropped in December more than the analysts expected. Halifax HPI fell 1.3 percent from November to December, following the 0.2 percent decline. The experts predicted the drop by 0.3 percent. The report said about signs of the potential stabilizing of the housing market, but “uncertainty about the economy, weak earnings growth and higher taxes could put … “Decline of House Prices Undermine British Pound”
Portugal Bailout – 7%Yields Mark the No Return Point?
Portugal is under pressure to take a bailout, despite denying it. Portuguese bond yields traded in a choppy manner, as the Euro dropped lower. Tracy Alloway, at Alphaville, reminds us of the previous bailouts through charts – 7% yields on ten year notes were the point of no return. Portuguese bonds already passed this mark … “Portugal Bailout – 7%Yields Mark the No Return Point?”
Demand for Safety Drives Swiss Franc Higher
The Swiss franc rose for the third consecutive day versus the euro and strengthened against the US dollar today as the concerns about the financial problems of the Eurozone countries drive the investors to the safety of the Swiss currency. The gap between yield investors demand on the Portuguese 10-year bonds and the German bunds widened last week most since November. Portugal is going to auction its debt today. The concerns about the ability of the country to raise funds caused the speculation … “Demand for Safety Drives Swiss Franc Higher”
A Quick 50 Pips Off The NFP – What Can We Learn From It?
Guest post by NewstraderFX My trade room made a quick 50 pips trading Friday’s NFP report and here’s how it was done. Plan For Different Scenarios. This involves understanding what the overall bias in price movement will be if the report is worse, equal, or better than the expected number. In this case, my opinion was … “A Quick 50 Pips Off The NFP – What Can We Learn From It?”
US Dollar Rallied This Week, Stalled on Poor Employment Reports
This week was very positive for the US dollar as the US economy showed the signs of the sustainable growth, but the end of the week spoiled the positive sentiment to some degree as the labor market wasn’t as strong as was expected. The beginning of this week was very bright for the US currency as every report showed the improvement of the economy. The report of the Automatic Data Processing, Inc. on Wednesday showed the significant growth of the employment, causing the optimistic outlook for the other employment … “US Dollar Rallied This Week, Stalled on Poor Employment Reports”
US & Canada Employment Reports Bring Loonie Higher
The Canadian dollar soared today after the report showed that the Canadian employers added more jobs than the market participants expected and as the unemployment rate in the US dropped, suggesting that the economic recovery in the North American nations are gaining momentum. The Canadian employment grew by 22,000, compared to the forecast growth by 19,100. The unemployment rate remained steady at 7.6 percent, while it was expected to increase slightly. The US unemployment rate slid … “US & Canada Employment Reports Bring Loonie Higher”
Optimistic Outlook for UK Economy Helps Sterling Rise
The Great Britain pound rose today as the forecast that Britain’s economy would prove stronger than the economy of the European Union amid the fiscal crisis outweighed the negative impact of the poor US non-farm payrolls. The economists predicted that the UK economy would expand 2 percent in 2011, while the Eurozone economy would grow 1.5 percent. The experts forecast that the Bank of England would keep its bond-purchase plan and the interest rates … “Optimistic Outlook for UK Economy Helps Sterling Rise”
Estonia Introduces Euro as National Currency Despite Its Weakness
The euro extended its losses today amid the threat of the sovereign-debt crisis, which may slow the economic growth in the Euro-region and further damp the demand for the shared European currency. Jean- Claude Trichet, the President of the European Central Bank, criticized the European governments in his speech today, saying that “monetary policy responsibility can not substitute for government irresponsibility” and the ECB policy makers “told all governments that they had to correct drastically … “Estonia Introduces Euro as National Currency Despite Its Weakness”
Zloty Drops After Rally on Anticipation of Interest Rates Hike
The Polish zloty dropped today for the third day after it surged at the beginning of this week, causing the speculation that the currency is overbought. The currency jumped after the Finance Ministry said that the annual inflation rate accelerated to 3.1 percent last month. Marek Belka, the President of the National Bank of Poland, stated that the policy makers would take actions to curb inflation, suggesting the potential interest rates increase. USD/PLN rose … “Zloty Drops After Rally on Anticipation of Interest Rates Hike”