Category: Forex News
Serious Progress Made in EU Summit – EUR/USD Flirts with 1.40
The leaders of the European Union had a long night, but it was eventually fruitful. The banks agreed on a 50% haircut on Greek debt. Reaching such an agreement was in the works. Will Portugal also get a haircut now? Bank recapitalization and a €1 trillion EFSF were also agreed, although the details are still
EUR/USD Returns to Range on Partial Success (or Partial Failure)
Some details are coming out of the EU Summit. These are good enough to get EUR/USD back to the previous range, but not satisfying for a convincing breakout. EUR/USD is at 1.3905, back in the 1.39 to 1.3950 range. Bank recapitalization: As expected, around 100-110 billion according to 9% core capital. No surprise. EFSF leverage: The bailout
Australian Rate Cut Chances Increase
The chances of rate cut in Australia increased significantly following the weak CPI. AUD/USD already got a blow from the release of the CPI, but a rate cut isn’t fully priced in. More significant falls depend on the actual cut and its size. Australia publishes official house price figures only once per quarter. During each
EU Summit Headed for Failure – EUR/USD Drops
Among the three main issues on the table, only one is close to being resolved, and not in a convincing way. EUR/USD which jumped earlier above the range on hopes, now sees the bottom side of the range. Updates. Bank recapitalization: A decision to demand a recapitalization of around 100-110 billion euros was on the
Greek Bank Run Getting Serious – Citizens Queue Up in Greek Banks
On the eve of the second European Summit that will discuss significant haircuts on Greek debt, the citizens of the debt later country are lining up to grab their money. Greek banks hold a significant amount of Greek debt and they have already experienced a slow bank run. The evidence seen now is not only
Canadian Dollar Retreating From Parity on Dovish Rate Statement
The Bank of Canada isn’t convinced by the recent improvements seen in Canada and remains quite cautious. USD/CAD, which was flirting with parity, is on the rise again. The pair is currently at 1.0075, significantly higher than around 1.0020 before the release. The trough of the day was below parity, at 0.9991. The BOC rate
EUR/USD Gaps Lower on Weak EU Summit Progress
Intense negotiations over the weekend in Brussels haven’t yielded significant progress. There is still a lot of work towards Wednesday’s summit, and hope for a comprehensive solution is fading. EUR/USD started the week with a gap of 50 pips lower over this disappointment. Update. Angela Merkel, Nicolas Sarkozy, Christine Lagarde and many others made little
EU Summit: Not Enough Progress Made – Pressure Remains on EUR/USD
The leaders of the European Union have made some progress in the first summit on Sunday, and it seems that some kind of watered down compromise will be reached on Wednesday. It looks far from comprehensive and is likely to weigh on the euro. Here are the main points, and what’s missing to make it a real
Is the IMF Closing the Tap for Greece?
Christine Lagarde, the managing director of the IMF, is showing her bold approach once again. Reports are emerging that the IMF threatens to deny further aid to Greece unless a 50% haircut is agreed with the private sector. IMF programs usually consist of restructuring of debt among other measures. In Greece’s case, the opposition of
EUR/USD Tries To Break Tough Downtrend Resistance
The influx of headlines regarding the debt crisis and the European summit yields choppy trading but also generates nice patterns. EUR/USD reached a downtrend resistance line for the fourth time already and is now attempting to break above it. There is a tough resistance line at the same point. In addition, a clear floor is