Post Tagged with: "IMF"
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
The perils of misplaced optimism
Markets have taken some comfort from the better-than-expected run of data seen in the early part of the year, the most recent being yesterday’s provisional PMI data in Europe. But are we heading for a repeat of the last two years? Both data sets saw a strong tendency for upside surprises in the early part,
EUR/USD Jan. 4 – Returns to Normal and Falls Sharply
Euro dollar made a big move downwards, losing the New Year optimism and refocusing on new worries from Spain and Italy. Recession seems more and more real. The pair reached the pivotal line. Will it stop here? The move higher seems indeed like short covering. The first sign for the US Non-Farm Payrolls was very positive. Here’s an
EUR/USD Dec. 20 – Waiting for the Hammer to Fall
Euro dollar remains in a tight range, that is becoming narrower. Will the pair break out and make a sharp move? A positive German Ifo Business Climate figure helps the pair, but only in range. Decisions made in the EU Summit seem hard to implement, especially regarding the IMF loan. The ECB refuses to step up bond
Cracks Widen in EU Summit Deal – IMF Loan Plan In Trouble
One of the plans made in the recent EU Summit was that European governments would lend money to the IMF, and that this money would help the indebted countries. The plan was to present the details by now. Well, not everyone wants to participate, and some of the participants need aid by themselves. This is
Why the Swap Cut Rally Will Likely Be Short Lived
The Federal Reserve and the ECB, together with 4 other central banks, decided to lower rates on dollar swaps by 50 basis points. As mentioned in recent days, the euro/dollar swap has reached levels last seen in 2008. This coordinated action had a strong impact on currencies, and sent EUR/USD back to the range seen
Europe takes the strain
In the midst of the financial firestorms raging right across Europe, we are reminded of that classic wartime poster, exhorting the people of Britain not to panic and to hold their nerve in the face of unbearable pressure and ever-present threats. No matter where you look in Europe right now, politicians are under extraordinary strain.
Japan losing the battle
The overnight intervention by Japan to weaken the yen is not wholly surprising given the recent moves we’ve seen on the USD/JPY. But it’s not a situation of yen strength by any stretch of the imagination. Ahead of the currency selling by the BoJ this morning, the yen was the weakest performer on the majors
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
Appetite for risk takes a knock
Risk appetite had something of a reality check yesterday with stocks, commodities, high-beta currencies and the euro all lower. After sneaking back through 1.38, the single currency threatened 1.37 amidst a wall of selling by sovereign wealth funds. The mood towards the euro worsened after the ECB Monthly Report observed that the outlook was coloured