Tag Archives: Euro
Early Morning Reid: Macro Strategy
Today is the day the ECB unofficially starts to exit from unconventional monetary policy as Euro-area banks now have the option to repay some of the 1 trillion Euros of LTRO money afforded to them last year. Banks can now hand back money with one week’s notice, and today at 11am London time is the […]
Euro Ahead of ECB Rate Meeting
The Euro strengthened modestly against the dollar and the yen Tuesday, lifted by better-than-expected U.S. economic data in light trading ahead of the U.S. Independence Day holiday.
Greek election: Two scenarios and potential market reaction
The Greek election is upon us this Sunday, with results beginning to roll in late Sunday, but the final outcome will not crystallise until Monday morning. This election will prove an important test of market sentiment and we look at two scenarios for the outcome (the most “positive” and “negative”) and resultant immediate market reactions.
EURO ANALYSIS
The ECB is expected to take a pause in its interest-rate-cutting campaign next week, but that’s not likely to bring a reprieve to the EURO, which remains trapped in a vicious cycle of rising government borrowing costs and weak economic data.
Future Euro in Greece
The chairman of Greece’s largest lender, National Bank, said Monday the country’s future in the Eurozone will be determined in the next three months, and called on political figures to back government efforts aimed at remaining in the European single currency group.
Eurozone Manufacturing Activity Decline.
Manufacturing activity in the euro zone declined for the fifth straight month in December, although less sharply than earlier in the fourth quarter, according to a survey of purchasing managers released Monday. The survey is consistent with other indicators of recent activity, and together the numbers suggest the eurozone economy contracted during the final three […]
Spain’s Fiscal Consolidation.
The Spanish fiscal consolidation package announced last week is a “very important step” that should reassure financial markets, European Commissioner for Economic and Monetary affairs Olli Rehn said in a statement. “Amounting to EUR15 billion or 1.5% of GDP, this consolidation package is sizable and a very important step to shore up public finances and […]
EURO ANALYSIS
Year-end flows and thin market liquidity on Friday caused USDJPY to slip below 77.00. This took EURJPY under 100.00 for the first time in over a decade. German Chancellor Merkel said she would “do everything to strengthen the euro” but that “a single currency can only then be really successful if we work more closely […]
EURO ANALYSIS
The EURO fell below the Y100 mark for the first time since June 2001 on Friday, pushed lower by continued pessimism toward Europe’s debt problems. At 1053 GMT, the single currency was at Y100.10, having dipped as low as Y99.96.
European Market Summary
The EURO lost more ground in Europe Thursday after a disappointing Italian bond auction, while core government bonds and equities headed higher. Italy managed to raise just over EUR7B, against a maximum EUR8.5B target, with yields some 50-100 basis points lower than at the last auctions.
UK Morning Briefing
Forex Overnight: EUR trading under pressure The Euro is trading lower against the majors, this morning, amid investor caution, ahead of the Italian long-dated bond auction worth €8.5 billion today. Moreover, a report released by the European Central Bank (ECB) yesterday, indicating that its balance sheet climbed to a record high level, has continued to […]
Euro sets new 11Month Low
The EURO plunged to its weakest level in nearly a year against the dollar Wednesday, as thin market conditions converged with concerns that Italy’s impending debt auction could fall short of expectations. The euro tumbled as low as $1.2939, down nearly 1% on the session before rebounding slightly in illiquid trading. That was its weakest […]