Post Tagged with: "EUR/USD"
European Cliff Hanger – Spain
A new government came into power in the last days of 2011. Prime Minister Rajoy announced new taxes and fresh cuts. Europe’s fourth largest economy has a much lower debt pile than Italy and enjoys lower yields. Yet Spain faces a recession. It will be hit hard during the winter which is low season in
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
European Cliff Hanger – Greece
Europe certainly remains in the limelight during Q1 2012. The Greek debt crisis began at the end of 2009 and has spread to other countries. Apart from countries, European banks are also on the edge. Nothing is secure and trust is hard to find. How long can this leg dragging continue? Perhaps we will see
German Ifo Business Climate Rises to 108.3 – Germany Drifts Away from Recession
German Ifo Business Climate rose to 108.3 points. Early expectations stood on a rise to 107.6 points from last month’s 107.3. EUR/USD trades in the 1.30 to 1.3060 range and now pushes higher. The IFO’s Current Assessment stood on 116.3 points, a bit lower than expected. The expectations figure jumped from 98.6 to 100.9 points.
Euro-zone Recession Not a Done Deal
The initial estimates for purchasing managers’ indices came out better than expected and provide hope that the euro-zone could avoid an outright recession. The data joins other encouraging figures from the continent’s powerhouse: Germany. Could Europe enjoy some stability or will the debt crisis wash everything down the drain? The flash data released by Markit
Greek Haircut Deal Closer – EUR/USD Challenges Resistance Once Again
The endless talks between private bondholders of Greek debt are probably really making progress this time. Reports about an agreed draft are emerging after 3 intense days of talks. The relief for Greece may be limited, but EUR/USD rises once again. At this time last week, EUR/USD was crashing. S&P downgraded 9 euro-zone countries, and
Greek Troubles Not Priced In
The headlines around the credit downgrade of France and other European countries took over the news, and partially covered the breakdown of the Greek PSI talks. Yet this isn’t the only issue brewing in the Hellenic Republic. Is the cataclysmic fall coming soon? When rumors of a French downgrade started to float, the option of
Greek Banks In Worse Shape Then Estimated
A report published by BlackRock Solutions finds a shortfall of 15 billion euros in Greek banks. They will have to draw plans to cover the missing cash, and this may include selling both good and bad assets. As Greek banks are heavily exposed to Greek government bonds, the actual shortfall also depends on the PSI program,
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
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.