Tag Archives: EFSF
Behavioral Finance: Daily Forex Outlook: Euro counts down to EU summit
EUR/USD (1.3725) Leveraging the EFSF to stem debt contagion involves potential political and economic costs which are the point of contention at the EU weekend summit. While France supports the idea of turning EFSF into a bank that could tap the ECB, Germany endorses enabling the EFSF to insure a part of peripheral euro debt.
Behavioral Finance: Daily Forex Outlook: EFSF leverage unlikely to ease debt worries
EUR/USD (1.3810) The euro and the equity markets moved up on the Guardian’s Tuesday evening report that France and Germany have agreed to boost EFSF to two trillion euros. Germany’s Finance Minister Schauble’s comments later that EFSF will expand to a maximum 1 trillion, although confusing, give an impression that eurozone politicians are at least […]
Behavioral Finance: Daily Forex Outlook: The deflator
EUR/USD (1.3775) The euro slid almost 200-pips early on Monday after German finance minister Schäuble announced that the October 23rd summit will not present any definitive solution to the eurozone debt crisis.
FX DAILY STRATEGIST: US – 17 Oct 2011
Eurozone optimism to be tested ahead of Sunday EU Summit The risk rally from last week continued into the Asian session with the G20 weekend meeting promoting expectations of a concrete plans to be put in place at the EU Summit on 23 October on the leveraging of the EFSF, European bank recapitalisations and details […]
Americas FX Daily – USD regains ground ahead of EFSF vote
What happened overnight – Slovakian coalition party says it will not support EFSF enhancement – UK manufacturing production weaker than expected – Sweden CPI below consensus forecast
FX Intraday Comment – Markets squeezed but watch Slovakia
Heading into last weekend markets knew Merkel and Sarkozy would meet on Sunday to discuss the G20 leaders’ summit in Cannes scheduled for 3-4 November. It seemed reasonable to assume the duo – who have held regular meetings in recent months – would not come up with anything specific on a meeting three weeks away.
Japan considers additional EFSF bond purchase, but timing is not very helpful for EUR
Today’s Nikkei daily newspaper reports the Japanese government has begun to consider purchasing additional EFSF bonds, and Chief Cabinet Officer Fujimura (the PM’s spokesperson) confirmed the general idea.
FX DAILY STRATEGIST: Europe – 30 September 2011
Markets remain volatile but directionless; NZD hit by downgrades: Risk appetite continues to ebb and flow with headlines of progress and setbacks on Europe. US equities recovered from an early slide to close on a positive note, but futures have turned lower again since; the moves are mirrored by FX markets, which continue to see […]
Behavioral Finance: Daily Forex Outlook: Euro maintains optimistic undercurrent, for now
EUR/USD (1.3615) Eurozone policymakers seem to have been rather dismissive of discussions about the transformation of the EFSF into a two-trillion-euro-heavy leveraged bailout vehicle. German finance minister, Schauble, has been notably critical and Bundesbank president, Jens Weidmann, has also indicated that the ECB would not play a role, a stance that reportedly has the full […]
FX DAILY STRATEGIST: Europe – 28 September 2011
Risk rally built on shaky grounds; we remain cautious Yesterday’s rally is perhaps best characterised as a combination of positioning and a small dose of glass-half-full optimism. Certainly there was some good news: the passage of the Greek property tax; and of the EFSF reform bills by Austria and Slovenia; Finland is expected to follow […]
HSBC FI – EFSF discussion continues, Italian
ECB comments on increasing size of EFSF A range of numbers have been mentioned on the newswires, with some suggesting an increase to EUR2-3tn but without details of what this involves it is difficult to forecast the impact. It is not clear how the EFSF would be leveraged and, furthermore, whether the figures reflect the […]
FX DAILY STRATEGIST: Europe – 26 September 2011
Friday optimism once again gives way to disappointment FX markets showed a little more stability on Friday, but once again this has proven temporary. Reports that EU officials were contemplating bringing forward the creation of the ESM (successor to the EFSF) to 2012, and that it would have capital of EUR500bn, helped drive optimism that […]