Post Tagged with: "Quantitative Easing"
Lose-Lose Situation for the Euro
If the ECB continues its policy regarding bond buying, the euro is set to fall. If it launches QE, it will likely follow the path of the greenback after QE2, with one specific euro cross set to gain. Christopher Vecchio of DailyFX analyzes the current situation of the euro, the bright side for the pound in the
Draghi Announces Easy Three Year Bank Loans, No QE – EUR/USD Falls
The president of the ECB, Mario Draghi, is discussing the rate cut just announced and also declared new measures to help banks: 2 three year LTROs, lower grade assets as collateral, and a cut in the reserve ratio. Anything to help banks in the current strain. EUR/USD rises but then turns back after Draghi answered NO
EUR/USD Dec. 8 – All Eyes on Draghi
Euro dollar is trading a big higher in a very limited range. All eyes are on the ECB rate decision. Mario Draghi is widely expected to cut the rates to 1%, but this isn’t 100% certain, and there are quite a few other policy options that could be introduced. This is a very busy day before
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
The US economy is in no state to support the global community
While recent indicators have been positive, the recent crisis in Europe is too strong for the world’s No. 1 economy. In the euro-zone, a rate cut seems likely, at least for easing the pressure for quantitative easing. John Kicklighter of DailyFX discusses the crisis, the US economy, the status of safe haven currencies and more
Cracks in ECB Sterilization – QE One Step Closer
The European Central Bank failed to sterilize all the bond buying made through the SMP program. As the central bank increased its bond buys by another 8.6 billion euros, it couldn’t drain all the money out of the markets, raising the money supply. This is not the first time that this happens and wouldn’t raise
EUR/USD Nov. 18 – Range Bound as Limited ECB Buying Maintains Stability
Euro dollar challenged the top border of the range without success. Greece revised its deficit figures once again. On the other hand, Italian yields are kept under 7%, courtesy of the ECB. Will the central bank step up its efforts? The crisis is at the foot of German bonds now. As no significant US figures are
Euro to Crash When German Yields Join the Party
The debt crisis weakened the euro, but the drops aren’t so significant, and are puzzling many. Well, most of the moves in the bond markets have been within the zone: from the periphery to the core, to the benchmark. As the wolves are closing in, also the German benchmark is in danger of being broken.
A calm before the storm
After Tuesday’s horror show, Europe’s markets were eerily calm yesterday, but frankly it seemed nothing more than an uneasy quiet before the next thunder-cloud arrives. Talk of the ECB stepping up the pace of secondary market purchases helped steady frayed nerves, but even so it is a long way short of the buying power that
GBP/USD Crashes as Extra 75 billion of QE Announced
GBP/USD is now plunging as the British Monetary Policy Committee decided to embark on more QE – Big time. An addition of 75 billion pounds to a total of 275 billion is at the high end of expectations, and at a low end for the pound. The interest rate remained at 0.50%, as expected. GBP/USD