Post Tagged with: "BOE"
Ratings Downgrade Would Trigger a Cataclysmic Sell-Off
The French downgrade, which is rumored as coming any minute, isn’t priced in yet. The actual move means that the core is officially hit by the debt crisis, says Christopher Vecchio of DailyFX. In the interview below, Vecchio discusses actions by the ECB, the decoupling of the US from the rest of the world and
The US economy is in no state to support the global community
While recent indicators have been positive, the recent crisis in Europe is too strong for the world’s No. 1 economy. In the euro-zone, a rate cut seems likely, at least for easing the pressure for quantitative easing. John Kicklighter of DailyFX discusses the crisis, the US economy, the status of safe haven currencies and more
Time running out for Greece
With nothing concrete emerging from the Ecofin meeting over the weekend and Greece’s creditors still balking at releasing the next tranche of bailout money, the single currency has fallen heavily overnight. Apparently the troika will be conducting a phone hook-up with Greek Finance Minister Venizelos today to discuss whether Greece has made sufficient progress on
Time for a bold approach
Ahead of his address to Congress on America’s jobs’ crisis later today, equity markets were buoyed by a suggestion that the size of the package the US President will present could be more than USD 300bln. It is expected to include substantial middle class tax cuts, a boost to infrastructure spending, and targeted state and
The summer of our discontent
There’s a myth in markets that August will be quiet with little going on. One of the reasons why this is often not the case is liquidity. When liquidity is low, moves are more exaggerated. Furthermore, on big moves, rumours then start to circulate as to what may be behind them. Tuesday was one of
Words over actions from the US Fed
From one angle, it was a big change, pledging to keep rates low for two years, rather than the previous pledge which translated to around three months. But for markets, it was not a big leap, given that interest rate markets were not far off pricing steady rates for the coming two years anyway. The
Bank of Japan fights back
After the lowering of interest rates from the Swiss National Bank (SNB) on Wednesday, it was the turn of Japan to try and curb the strength of its currency. In the wake of today’s latest BOJ meeting, monetary policy was further expanded via an increase in existing asset purchase programs and lending facilities. Furthermore, in
The dollar bears retain their strong grip
BoE still swimming in a sea of uncertainty Risk appetite returns with a flourish China changing tune on the yuan Green light for Aussie gains The dollar bears retained their vice-like grip on the forex market on Wednesday with the greenback sinking 1% by the end of the morning session. It was the
The euro has time to play with…just
Right now, the euro is benefitting from the fact that time is on its side. There’s no doubt that yesterday’s increase in ECB rates will not help the periphery out of their current problems, but the impact of this is not going to be seen for some time to come. Furthermore, the Portuguese request for
The King’s letter – UK rate hikes looking more likely
Yet another perky performance from the pound today, which tops the league amongst major currencies for the year to date. Interestingly, it was Mervyn King’s letter to the Chancellor, rather than the latest inflation figures, which was the major trigger for the pound’s advance. Guest post by FxPro The key passage in the letter was the