Post Tagged with: "ECB"
5 Reasons Not To Cut Rates – ECB Preview
Those expecting a third rate cut from Draghi might be disappointed. The ECB will likely repeat the “business as usual” stance that worked so well last month. There are 5 reasons for the ECB to wait and see for another month. After rate cuts in November and December, the European Central Bank left the rates
EUR/USD Feb 8 – Bouncing from High Resistance on Slow Greek Progress
Euro dollar bounced off high resistance after the break higher yesterday. Political leaders in Greece made significant steps forward, and also the ECB may be willing to indirectly accept losses on Greek bonds, lowering the debt load on the Hellenic Republic. It seems that Germany counters this concession with a new idea to postpone the lion’s
EUR/USD Feb 7- Waiting in Range for more Greek Cuts
Euro dollar is steady in the middle of the range, as talks between Greek leaders are close to conclusion regarding the terms of the bailout. Greek politicians have little choice, but they want to improve their position before the elections. In the meantime, Germany and France want to segregate the bailout money in a separate account,
The allure of a safe-haven (Video)
One of the more remarkable developments during January was the relatively strong performance of the traditional safe-haven currencies, principally the yen and Swiss franc. We wrote about this during the course of last month, but the Swissie is particularly under the spotlight, given the proximity of EUR/CHF to the 1.20 floor imposed by the SNB
The unbearable lightness of being
Europe is still stumbling through a sovereign debt crisis, Greece is close to default, Portugal is in dire need of more cash yet, risk appetite so far this year has been a minor revelation. Some major equity markets such as the DAX and the Hang Seng are up more than 10%; BRIC equities are also
European Cliff Hanger – Italy
Italy is becoming too similar to Greece: unsustainable debt, a technocrat government run by an ex-banker and slow moves on reforms. Yet contrary to Greece, Italy is too big to bail. And contrary to Greece, Italy’s problem is mostly a liquidity problem rather than a solvency problem. Italy can certainly avoid PSI, IMF intervention and
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
ECB Pauses With Rate Cuts As Expected
The European Central Bank left the interest rate unchanged at 1% as expected. EUR/USD remains stable around the 1.2760, still enjoying the previous gains, until Mario Draghi’s press conference, which could send the euro lower. Stay tuned for a live blog of the event. At 13:30 GMT, Mario Draghi will present the decision, updated forecasts
Conveying a Message of “Business as Usual”? ECB Preview
The first rate decision of the ECB for 2012 will likely not consist of any new unconventional measures nor rate cuts. This comes as the chances of a Greek default are rising, together with distrust among banks. Will Draghi surprise with a bigger move? Probably not, and this may be painful for the single currency.
EUR/USD Jan. 12 – All Eyes on Draghi
Euro dollar is awaiting the European Central Bank at low range, after the warning from Fitch sent it down, but not below critical support. Spanish and Italian bond auctions precede Draghi’s decision and will show if ECB QE is necessary. In addition, the US calender is very busy today. Will Draghi open the road for another