Post Tagged with: "interest rate"
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
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.
ECB Cuts Rates by 0.25% to 1%
The European Central Bank cut its benchmark Minimum Bid Rate by 0.25% to 1%, as expected. The new president of the ECB, Mario Draghi, fully reversed the rate hikes made by his predecessor Jean-Claude Trichet earlier in the year. EUR/USD traded just above 1.3380 before the release, at the lower end of the 1.3360 and
Australian Dollar Recovers From Rate Cut
The RBA cut the interest rate in Australia by 0.25% to 4.25%, in a move that was widely expected. This is the second cut in a row. Glenn Stevens and his colleagues cut the rates from 4.75% to 4.50% on November 1st. The Aussie took a dive following this move, but it found support and
Draghi: Risks Have Materialized – EUR/USD Extends Drops
In his first press conference as the president of the ECB, Mario Draghi explains the decision to cut the interest rate from 1.50% to 1.25% and describes the risks to growth as “materializing”. EUR/USD reacts with a extended drops on the worrying tone of Draghi. EUR/USD is already at support at 1.3725 and threatens to break
ECB Supplies Market Liquidity, Limited Market Intervention – EUR/USD Falls
Jean-Claude Trichet said that the ECB is “monitoring very closely”, but immediately announced an LTRO plan to supply liquidity – pushing money to the markets. The ECB intervened in the markets, but at a very limited scale, apparently without touching Spanish and Italian bonds. The best show in town for euro traders ended with a
Stepping Back From The Monitors? ECB Preview
Jean-Claude Trichet will have his monthly rendezvous with the press after the rate decision, and is likely to be softer this time. How will the euro react to Trichet’s words? ECB Preview with four scenarios – one is already priced in. On Thursday at 11:45 GMT, the ECB is expected to leave the interest rates unchanged
NZD/USD Should Get More Attention
The New Zealand dollar / US dollar usually ends lists of currency pairs, and is sometimes just left out of them. The currency is just above the “exotic” grade, enjoys a few positive characteristics, and should gain more attention from currency traders. Here are 5 reasons why. With a population of less than 4.5 million
Is Trichet Bold Enough to Change His Mind?
At this time three years ago, Trichet raised the rates just before the global financial system collapsed. He found himself slashing the rates quickly afterwards. It’s not only a fresh round of the debt crisis that poses a risk. There are many signs of a slowdown at the euro-zone’s strongest countries and all over the
EUR/USD Falls as Trichet Signals Further Pause and Warns About Exchange Rate
ECB President Jean-Claude Trichet didn’t use the code words “strong vigilance”, but used “monitor very closely” instead. So, we expect another pause in rate hikes next month. This comes as the interest rate was left unchanged at 1.25%. EUR/USD now drops and is dropping below support. The falls are accelerated after Trichet quotes in full