Post Tagged with: "credit crunch"
EUR/USD Aug 19 – Resumes Falls As Fears Continue
Euro dollar is dipping below support as the stock market crash continues into the European session. Fears of a credit crunch in European banks and global recession weigh on the pair. Will the pair break out of the long term range? Here’s a quick update on technicals, fundamentals and what’s going on in the markets. EUR/USD
Corrected: Société Générale Highly Leveraged
France’s No. 2 bank, Société Générale, has a high leverage rate of 28:1 according to internal numbers, and 23:1 according to US GAAP netting conventions . This article has been corrected after receiving information from Société Générale. These numbers are worrying, but not as bad as earlier reported. Fresh calculations have been provided by Jean-Pierre Chevallier, who is an
How Will Currencies React to the Credit Downgrade?
The question above is tough. The historic downgrade of the US by S&P is set to aid some currencies against the dollar, while others will suffer. One thing is certain: the week will open with a storm. Here are estimates on 7 currency pairs, assuming that policymakers around the world will not act in extraordinary
Greek Default to Start Huge Credit Crunch?
There’s a rumor in the market about Greece “restructuring” its debt over the weekend. The Euro currently shrugs it off. But an unprecedented default in one of the Euro-zone countries is could have huge implications. Will this start a bigger snow ball than the Greek bailout? The whole European banking system is endangered and the
Portugal Bailout To Be The Last?
France will start a busy week and a busy year of selling debt – it aims to raise 8.5 billion euros on Monday. Also Germany, Belgium and the Netherlands will raise money, but the focus will be on Portugal, which will go for a modest 0.5 billion euros on Wednesday. Portugal is marked as the
Credit Crunch 2 Coming in 2011?
The European debt issues are known, and it’s also known that the Spanish government and the Spanish banks have a lot of debt to pay back at the beginning of the year, but the magnitude now seems bigger than earlier. According to the Telegraph, banks must refinance (pay back, or rollover) 400 billion euros, European
Spain’s Credit Freeze Weighs on Euro
The European leaders can deny a multi-billion rescue package for Spain, but the wheels are already in motion – foreign banks refuse lending money to Spanish banks, and the government may be unable to supply the liquidity. EUR/USD is also in a downwards motion, ending the short lived party. Also the ZEW Economic Sentiment was
EUR/USD Recovers on Ifo Business Climate – Will it hold?
German Ifo Business Climate came out better than expected, rising above 100 for the first time since May 2008, and helps the Euro temporarily recover from the Greek tragedies. Similar to the ZEW index earlier in the week, Germany’s Ifo Business Climate was expected to rise from 98.1 to 98.9, but instead of edging up,
EUR/USD Hit By Greece, Spain and now America
EUR/USD is having a bad week. The blow it got from American Non-Farm Payrolls continued with internal problems in Europe, and American retail sales send it further down. It may be getting close to a breakout. Update 15:00 GMT: American Consumer Sentiment was also better than expected: 73.4 points instead of 68.6. EUR/USD is already
Pound Rollercoaster Roundup
This was one hell of a week for the British Pound. Different forces moved it up and down. Here’s a summary of this week’s events. What can we learn for next week? The British Pound got some expected and unexpected news this week. I’ve covered the event in my post Will Retail Sales and GDP Send