The Greek government is on the edge of complete collapse. A bailout payment from the EU and the IMF ($8 billion euro due this month) has yet to be made, since there is uncertainty about whether or not Greece will meet the terms of the help. On top of that, Greek leaders are contemplating withdrawal from the eurozone. Rather than sinking the euro, though, this development is allowing the euro to strengthen a little bit. While the initial … “Euro Heading Higher, Even with Greece on the Brink of Collapse”
Month: November 2011
USD/CAD: Trading the Canadian Nov 2011
The Canadian Employment Change is an important leading indicator which tends to be a market-mover. Analysts and traders closely examine this indicator together with the Unemployment Rate reading, which are released at the same time and provided critical employment data. A reading that is higher than the market forecast is bullish for the Canadian dollar. Here are the … “USD/CAD: Trading the Canadian Nov 2011”
ECB Set to Reverse Policy? Preview
The first euro-zone rate decision under the new ECB president Mario Draghi comes at a bad timing of a slowdown in the zones’ economies. There’s a significant chance that Draghi will reverse the last rate hike of his predecessor. ECB Preview. Jean-Claude Trichet held the helm for 8 years and proved to be very tough … “ECB Set to Reverse Policy? Preview”
Won Falls as Traders Look at Greek Referendum with Concerns
The South Korean won dropped today as the tension about the upcoming referendum in Greece continued to damp demand for riskier currencies of emerging markets. The European leaders said that Greece won’t receive any help until the referendum will be conducted. The negative outcome of the referendum may cause the country to leave the European Union. Mario Draghi, who succeeded Jean-Claude Trichet, will lead today his first monetary policy meeting as the President … “Won Falls as Traders Look at Greek Referendum with Concerns”
UK Services PMI Slides More Than Expected
Britain’s services sector has slowed down in October according to the fresh purchasing managers’ index: the score dropped from 52.9 to 51.3, more than a drop to 51.9 that was expected. The impact on GBP/USD is minimal, as this surprise isn’t so dramatic. Britain’s construction sector provided an upside surprise by jumping to 53.9 points, … “UK Services PMI Slides More Than Expected”
Pressure on Italy Mounting – Also in the Short Term
10 year bonds continued moving higher, floating between 6.3% and 6.4%. These are very high and unsustainable levels. These benchmark bonds are important, but the bigger drama is in the shorter term bonds, where significant and worrying breakouts have been made, but they were not always noted. The ECB is active in buying Italian bonds. … “Pressure on Italy Mounting – Also in the Short Term”
USD Higher vs. Euro, Erases Losses
The US dollar regained its strength against the euro today after yesterday the US currency declined following the decision of the Federal Reserve to maintain the interest rates at the record low level. The Federal Open Market Committee maintained the key federal funds rate at zero to 0.25 percent and confirmed its pledge to keep the rates at the record low levels till at least mid-2013. The FOMC mentioned several problems of the nation’s economy, particularly the employment: Recent … “USD Higher vs. Euro, Erases Losses”
Malaysia’s Ringgit Goes Down as Tension Grows
The Malaysian ringgit went lower today as traders fear the Greek referendum may destabilize already “unpleasant” situation in Europe and that fears eat away their willingness to buy riskier currencies of emerging markets. Government spokesman Angelos Tolkas announced yesterday that Greece will proceed with the referendum on the measures required to get aid from the “troika” (the European Union, the European Central Bank and the International Monetary Fund). French President Nicolas … “Malaysia’s Ringgit Goes Down as Tension Grows”
2 European Banks Remain Starved Out of Dollars
Two European banks could not get access to funding in US dollars. They had to go to the European Central Bank, which issues euros, not dollars, in their need for cash. They just couldn’t get it from their peers. The total sum is only $505 million, but this is still worrying. Usually there’s one only … “2 European Banks Remain Starved Out of Dollars”
NZ Dollar Falls as Greece Hurts Market Sentiment
The New Zealand dollar retreated today as the concerns about the Greek referendum continue to plague markets and the Asian stocks declined. Previously, investors feared an orderly default in Greece. Now, a potential negative outcome of the Greek referendum has brought a very real possibility a disorderly default. The MSCI Asia Pacific Index fell 1.1 percent. The New Zealand currency may find a support tomorrow from the employment report. Analysts predict the report to show … “NZ Dollar Falls as Greece Hurts Market Sentiment”