Yet another effort to get “grand bargain” on the cutting the US deficit and raising the debt ceiling ended in break up. Each side is blaming the other, and the clock is ticking towards August 2nd. Or is it really ticking? Here are three ways this could unfold. GOP leader John Boehner broke talks with … “US Debt Ceiling: Three Ways This Can Unfold”
Month: July 2011
Euro Posts Weekly Gain After Two Weeks of Losses
This week was “a mixed blessing” for the euro. For the most part, the currency showed a good performance as worries about the debt crisis subsided, but by the end of the week concerns returned. The summit of the European Union leaders caused optimism among Forex traders, who anticipated some cohesive plan for dealing with the sovereign-debt crisis. The summit ended, a plan was presented, but traders didn’t look very happy about the outcome. Surely, some … “Euro Posts Weekly Gain After Two Weeks of Losses”
Euro Drops as Optimism Caused by EU Summit Wanes
The euro declined today on concerns that measures planned by the European leaders on the summit yesterday wouldn’t be enough to contain the sovereign-debt crisis. The European lawmakers agreed to provide additional aid for Greece, expand the Eurozone bailout fund and allow to use it for purchasing bonds of indebted nations. Forex traders are worried, though, that such measures won’t be enough to deal with the crisis in the long run. The EU leaders said in the statement: … “Euro Drops as Optimism Caused by EU Summit Wanes”
Canadian Inflation Slows, Loonie Retreats
The Canadian dollar dropped today after the report showed that inflation in Canada slowed more than expected in June, reducing incentive for the nation’s central bank to boost borrowing costs. The Consumer Price Index declined 0.7 percent, not seasonally adjusted, in June from May, following the advance by 0.7 percent in the month before. The expected reading was a decline by 0.2 percent. The drop was attributed to lower prices for the purchase of passenger vehicles … “Canadian Inflation Slows, Loonie Retreats”
Wolves still circling Greece
The deal reached at the emergency summit is being taken positively by markets largely because, after all the discord and fractures of recent weeks, the display of unity is a thing to behold. But looking beyond the current harmony, there are many issues still to overcome and on face value, the current proposal needs more … “Wolves still circling Greece”
The Greek Plan Sets-Up New Bearish Leg For Dollar
The plan for Greece is sending markets higher across the board, with Nikkei up more than 1.2%, Hang Seng Index +1.7% and China 0.18%, following the pattern form Wall Street. We see the similar situation on European markets that just opened and are already more than 0.5% in the green. FX market was mostly consolidating … “The Greek Plan Sets-Up New Bearish Leg For Dollar”
EU Summit Eases Need for Safety, Yen Drops
The Japanese yen fell today as the summit of the European leaders spurred hopes that the EU will be able to contain the debt crisis, reducing demand for Japan’s currency as a safe haven. The leaders of the European Union have met yesterday at summit in Brussels. They decided to give â¬159 billion of additional aid for Greece. The lawmakers also allowed to use the rescue fund to buy debt of the peripheral economies and eased the terms of loans to the indebted nations. The Stoxx … “EU Summit Eases Need for Safety, Yen Drops”
Export & Import Prices Push Aussie Higher
The Australian dollar gained today versus the euro and the Japanese yen as the advance of import and export prices prompted the speculation that the central bank will raise interest rates. Australian import prices rose 0.8 percent in the second quarter, while export prices increased by 6.0 percent. The MSCI Asia Pacific Index of regional shares climbed 1.1 percent. The positive economic data caused most market participants to bet that the next move … “Export & Import Prices Push Aussie Higher”
CAD Reaches Three-Year High vs. USD
The Canadian dollar reached yesterday the highest level in three years against the US currency, before retreating today, on the speculation that growing inflation in Canada and improving global economy will prompt the central bank to resume interest rates increases. Today’s report from Statistics Canada is expected to show an annual inflation growth by 3.6 percent in June, following the 3.7 percent increase in May. Analysts believe that rising inflation will … “CAD Reaches Three-Year High vs. USD”
Euro Jumps as EU Leaders Make Plan to Help Greece
The euro surged today on the speculation that the leaders of the European Union will increase the size of the rescue fund and will accept a temporary Greece’s default, reducing threat of spreading of the debt crisis to other countries of the region. The European politicians strive to make a period of default for Greece as short as possible. The European Financial Stability Facility will support the nation. To do so, economists hope, the EFSF will increase its size and will back up Greek … “Euro Jumps as EU Leaders Make Plan to Help Greece”