Ben Bernanke made a huge effort to be dovish in his latest statement, but couldn’t ignore the improving job market. This improvement came as a surprise to him. No QE3 in the Fed’s March 13th meeting will be no surprise, and not just because of this statement: The Federal Reserve is dovish and tends to … “Fed Unlikely to Provide New Dollars for Spring Cleaning”
Month: February 2012
Euro Struggles on LTRO
Euro is struggling today, especially against the US dollar. The Long-Term Refinancing Operation offered more money than expected, and that has many wondering about the stability of the European banking system. So, even though there is a measure of risk in the financial markets today, the euro isn’t feeling the good effects. Indeed, the LTRO is offering $713.4 billion (489 billion euros) in special financing to banks in the latest — and possibly … “Euro Struggles on LTRO”
US Dollar Mixed after GDP Data
US dollar is mixed today after encouraging GDP data was released. The latest numbers for the fourth quarter of 2011 indicate that the US economy grew 3%, which is better than the 2.8% pace originally reported. The news has helped the greenback pare some of its losses against the Japanese yen, and provided some support for Great Britain pound. US GDP data suggests that the US economy might … “US Dollar Mixed after GDP Data”
GBP/USD Trading the British Manufacturing PMI
The British Manufacturing PMI (Purchasing Managers’ Index) is based on a survey of purchasing managers in the manufacturing sector. Respondents are surveyed for their view of the economy and business conditions in the UK. A reading which is higher than the market forecast is bullish for the pound. Here are all the details, and 5 possible outcomes … “GBP/USD Trading the British Manufacturing PMI”
Passive-Aggressive Push for a Greek Bankruptcy Continues
Greece wants to stay in the euro-zone. That’s clear. What is unclear, is whether it is fully willing and fully able to do what is requested from it. Germany’s finance minister said that he “will regret but respect any country that wants to leave the euro-zone”. This passive-aggressive statement joins a long list of events … “Passive-Aggressive Push for a Greek Bankruptcy Continues”
Canadian Dollar Clings to Gains
Canadian dollar is clinging to gains, struggling to retain the upper hand as risk aversion begins to creep into the picture. Loonie is slightly higher against the US dollar, as well as against the UK pound and the euro. US durable goods orders contracted more than expected in January. Some expected that news to take a bigger toll on the Canadian dollar, since the United States is Canada’s biggest trading partner. However, the news … “Canadian Dollar Clings to Gains”
Retail Sales Data Helps UK Pound against US Dollar
UK pound is higher against the US dollar today, gaining on better retail sales data. The expectation now is that Great Britain will avoid a recession, and that is providing sterling with a little support today. The Confederation of British Industry reported a change to minus 2 on its index in February — up significantly from January’s minus 22. The news is supporting the idea that Great Britain’s economy … “Retail Sales Data Helps UK Pound against US Dollar”
German Finance Minister Shows Greece the Door
Wolfgang Schäuble, Germany’s finance minister, said that he would regret but respect if a country would leave the euro-zone. This isn’t the firm commitment to keep Greece in the euro-zone, heard usually from his boss Angela Merkel. This statement follows previous musings about Greece being a “bottomless pit” and follow many actions that push Greece … “German Finance Minister Shows Greece the Door”
EUR/USD:Trading the United States GDP
The Gross Domestic Product (GDP) is a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. Thus, publication of the United States GDP may impact on EUR/USD. A reading which is better than the market forecast is bullish for the dollar. Here are all the details, … “EUR/USD:Trading the United States GDP”
Will Greece Find Enough “Volunteers” for a Haircut?
Greece isn’t offering its private bondholders too much under the “voluntary” debt restructuring. S&P already downgraded Greece’s credit rating to “Selective Default” after the Collective Action Clauses were introduced. The bond swap is a critical part of the second Greek bailout package. The tentative deadline (as any deadline around this crisis) is March 8th, when … “Will Greece Find Enough “Volunteers” for a Haircut?”