Finally, the tables are beginning to turn in Europe. The paradigm so far was that in order to fight the debt crisis and to lower the debt-to-GDP ratio, governments must make an effort to balance their budgets by cutting their spending. This in turn led to a deterioration in the economic situation, meaning lower GDP. … “European Spring – Tables are Turning in the Old”
Category: Opinions
Shift in Safe Havens
Since the financial crisis erupted in 2008, the trading themes of “risk aversion” versus “risk appetite” have been dominant for quite some time. Things are slowly starting to get back to normal, yet the flows towards safe havens still happens, and sometimes violently. The safe haven currencies are also undergoing a shift. Here’s an overview … “Shift in Safe Havens”
Hollande Could Sink EUR/USD Below 1.20 in the Long Term
The elections in France could have a significant impact on the euro in the medium to long term, says Christopher Vecchio of DailyFX. A political struggle within the euro-zone’s strongest powers could significantly damage confidence. In the interview below, Vecchio discusses the upcoming elections, the impact of the Non-Farm Payrolls on the dollar, why the pound … “Hollande Could Sink EUR/USD Below 1.20 in the Long Term”
NZD/USD: Trading the New Zealand Employment Change
The New Zealand Employment Change is an important leading indicator which often has a significant impact on the markets. Traders and analysts carefully examine the indicator, looking for any trends which could affect NZD/USD. A reading which is better than the market forecast is bullish for the New Zealand dollar. Here are the details and 5 possible outcomes for NZD/USD. Published on Thursday … “NZD/USD: Trading the New Zealand Employment Change”
USD/CHF: Trading Swiss Retail Sales May 2012
Swiss Retail Sales is considered one of the most important indicator of consumer spending. The indicator’s release early this month provides analysts and traders with an early look at consumer spending. A reading that is higher than the market forecast is bearish for the US dollar. Here are all the details, and 5 possible outcomes for USD/CHF. Published on Wednesday … “USD/CHF: Trading Swiss Retail Sales May 2012”
USD/JPY Trading the ISM Manufacturing PMI
The ISM 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 US. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 possible outcomes … “USD/JPY Trading the ISM Manufacturing PMI”
Italy – Getting by with PR instead of Reform
Europe’s third largest economy has some advantages over Spain, but if bazookas and firewalls or even a Spanish departure could leave the euro-zone intact, troubles in Italy could deal a deadly blow to the euro-zone. Italy has a much lower ratio of private debt in comparison with its GDP. The unemployment rate is high, but … “Italy – Getting by with PR instead of Reform”
Will Spain be Bailed Out by the ECB?
After reviewing Spain’s 5 toxic mix of 5 serious economic problems, what are the prospects for the euro-zone’s fourth largest economy? Austerity can please the markets for a short period of time, and help reduce the debt recycling costs. The debt factor in the debt to GDP equation falls. However, when it causes a lower … “Will Spain be Bailed Out by the ECB?”
EUR/USD: Trading the US Advance GDP April 2012
The Advanced Gross Domestic Product (GDP) provides a measurement of the production and growth of the economy. Analysts consider GDP one the most important indicators of economic activity. This indicator is published every quarter, and may impact on EUR/USD. A reading which is higher than the market forecast is bullish for the dollar. Here are all the details, and 5 … “EUR/USD: Trading the US Advance GDP April 2012”
Spain’s Toxic Mix – 5 Serious Economic Issues
Europe’s fourth largest economy had a strong start to the year. The Long Term Refinancing Operation by the ECB encouraged buying Spanish bonds, and Spain certainly seized the opportunity and satisfied nearly half the year’s funding needs in less than four months. But since then, there is less demand for Spanish bonds, yields have gone … “Spain’s Toxic Mix – 5 Serious Economic Issues”