During the press conference, ECB president Mario Draghi was asked twice if the ECB will also take a haircut on Greek bonds. He avoided commenting on this directly. Also his Vice President said that PSI is Private Sector Involvement. Sure, the ECB belongs to the public or official sector and not the private sector, but … “ECB Ready to Take a Hit on Greek Bonds?”
Month: January 2012
US Dollar Falls as Libor Drops
US dollar is lower across the board this morning as the Libor falls for borrowing dollars and euros. The London interbank market also saw a narrowing in the spread of three-month dollar Libor and overnight index swaps. However, the latest US jobs data might change things; the US dollar is only slightly lower and could easily gain strength if risk aversion rises. Greenback is mostly lower today, dropping against … “US Dollar Falls as Libor Drops”
USD/JPY:Trading the Preliminary University of Michigan Consumer Sentiment
The Preliminary University of Michigan Consumer Sentiment Index surveys consumer attitudes and expectations about the US economy. A reading that is higher than predicted by the markets is bullish for the dollar. Here are all the details, and 5 possible outcomes for USD/JPY. Published on Friday at 14:55 GMT. Indicator Background The University of Michigan Consumer Sentiment Index … “USD/JPY:Trading the Preliminary University of Michigan Consumer Sentiment”
Conveying a Message of “Business as Usual”? ECB Preview
The first rate decision of the ECB for 2012 will likely not consist of any new unconventional measures nor rate cuts. This comes as the chances of a Greek default are rising, together with distrust among banks. Will Draghi surprise with a bigger move? Probably not, and this may be painful for the single currency. … “Conveying a Message of “Business as Usual”? ECB Preview”
NZD Gains as Chinese Inflation Slows
The New Zealand dollar gained after China’s inflation decelerated, spurring speculation that China will stimulate the slowing economic growth, boosting prospects for New Zealand exports. China’s consumer prices rose 4.0 percent in December, demonstrating the slowest rate of growth since September 2010, following the 4.2 percent increase in November. The report led to talks that China may ease its tight policy. The People’s Bank of China reduced … “NZD Gains as Chinese Inflation Slows”
Japanese Yen Gains Against Euro, Pound
Japanese yen is gaining against the euro and the pound today, thanks to renewed fears about what’s next for Europe. Yen is lower against the US dollar, though, thanks in part to the re-emergence of the trade deficit in Japan. As long as concerns about Europe, and the banking industry, remain, yen is likely to find some strength against European currencies. Japanese yen has long been considered a safe haven currency. It is … “Japanese Yen Gains Against Euro, Pound”
Pound Lower on Trade Balance & Monetary Easing Speculation
The Great Britain pound went down today after trade balance deficit widened retail price inflation slowed. The sterling also weakened on speculation that the Bank of England will add stimulus. Seasonally adjusted trade deficit rose to £8.6 billion in November from £7.9 billion in October. The shop price index of British Retail Consortium fell to 1.7% in December from 2.0% in November. There are talks that the BoE may … “Pound Lower on Trade Balance & Monetary Easing Speculation”
Euro Down on Fitch Comments
The euro declined today after Fitch Ratings spoke about possible worsening of Europe’s credit crisis and potential disintegration of the eurozone. Fitch said the European Central Bank should ramp up its bond purchases, otherwise the euro risks collapsing. A report tomorrow is expected to show a 0.2 percent decline of eurozone industrial production. The ECB will hold a monetary policy meeting tomorrow. Analysts expect it to keep the main interest … “Euro Down on Fitch Comments”
Canadian Dollar Losing Momentum on Risk Aversion
Earlier, the Canadian dollar was gaining on the demand for riskier assets. Yesterday’s demand for higher yielding assets helped the loonie gain versus its counterparts. However, some of that momentum is being lost right now as a bit of risk aversion sets in. Canadian dollar has been strengthening against currencies like the euro and the Great Britain pound recently, gaining as the US economy shows signs of recovery. With 3/4 of Canada’s … “Canadian Dollar Losing Momentum on Risk Aversion”
EUR/USD: Trading the European Industrial Production
The European Industrial Production indicator measures production in the important manufacturing, energy supply and mining sectors. A reading that is higher than the market forecast is bullish for the Euro. Here are all the details, and 5 possible outcomes for EUR/USD. Published on Thursday at 10:00 GMT. Indicator Background The indicator readings, published monthly, have a … “EUR/USD: Trading the European Industrial Production”