Posts Tagged ‘ECB’

A considerable amount of attention by online Forex traders has centred around the relationship between the United States dollar and the euro. There continues to be a significant amount of speculation in regards to the monetary strategies employed by the Federal Reserve in relation to the actions of the ECB.

In particular, surprisingly robust employment figures out of the United States have hinted that the Fed may hike interest rates in December.
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The Greece crisis reached new corners of the globe recently with its latest haphazardly turn away from progress. Today Monday June 29th, markets suffered across Asia to Europe in the wake of Greece shutting down its banks for a week, ahead of a debt default that now seems more probable than ever.

Oil prices saw a sharp drop and the Euro declined against the dollar, while Japan’s Nikkei 225 index fell 2% to 20,283.98 points.
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The additional liquidity offered by the European Central Bank (ECB) might pose some risks to the financial stability of the region, according to the bank’s president, Mario Draghi.

Addressing investors in Frankfurt, the president said the ECB new policy measures may have some risks, and further suppress benchmark sovereign bond in the euro zone.
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In the latest round of online Forex trading news, it seems that the bears still have a strong hold over the euro.

It should be no surprise that Greece has played a central role in this recent doom and gloom.

As their government is now hinting (not so subtly) that they wish to renegotiate the terms of their previous bailout, rumours are spreading that the stability of the European Union may once again come into question.
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It has recently been announced that the ECB will take an unprecedented step and inject no less than €1.1 trillion euros into the European economy.

This quantitative easing measure intends to purchase €60 billion euros worth of bonds each month until (at least) September 2016.

This action is seen as being no great surprise to many online Forex investors who have stated that a stagnant European economy required an additional economic stimulus.

Obviously, this will have a rather dramatic effect upon the value of the euro in relation to other currencies.
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All eyes seem to be focused on the recent strengthening of the euro in relation to the majority of other traded currencies.

Indeed, this eighteen-nation benchmark was seen to be trading at the highest levels so far this year; rising 0.6 per cent in early trading while even briefly touching upon $1.3813 dollars. This value has not been seen since late December of 2013.
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An optimistic quarterly inflation report from the Bank of England on Wednesday saw Sterling surge on the Forex markets, with well-placed online traders taking good advantage of the announcement.

The Bank’s Governor, Mark Carney, commented that economic recovery was taking hold in the UK and the Bank’s projections for growth were moving forward, with next year’s annual growth expected to reach 2.8%, up 0.3% from the projection made in August.
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While the Euro had slid considerably last week after the recent round of ECB interest rate cuts, the announcement by ECB president Mario Draghi that further cuts may be necessary has further dampened the outlook for this embattled currency.

Many online forex traders take such a stance as an indicator that economic conditions in Europe are far from sorting themselves out in the short to medium-term.
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The final week of April has witnessed the Euro tumble once again as the jobless rates in the European Union hit an all-time high of 12.1% awhile inflation slowed to 1.2%; rates not seen since February of 2010.

Of notable importance for online forex traders is the marked unemployment figures released from both Spain and Germany. While the figures in Germany may be seen as comparatively marginal, those in Spain represent the continued weakness of the fifth-largest economy in Europe.
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The most prominent online trading news for this week is the unfolding situation in Cyprus. We have seen the Euro lose more value as the EU continues to pressure Cyprus to come to a consensus regarding the 5.8 billion Euros needed to save the ailing country from a disorderly default and a messy exit from the European Union.

Although this 5.8 billion was initially to come from the mandatory levy on all citizens’ bank holdings, severe protests and mass withdrawals of capital have made this move, at least as it currently stands, all but impossible.
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It seems that the new year has once again brought the bears out in regards to the latest online forex trading sentiment. The Euro has lost any previous gains made against the dollar due to a larger fall in European Union industrial output than previously predicted.

This statistical pullback is highlighted by the continued record-high unemployment in countries such as Spain and Greece. Although unemployment remains one of the most bearish economic barometers for the Euro, weak private sector output serves to further illustrate the fragile state of this multinational economy.
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As Greece slips into an ever deepening recession with unrest and protests reported across the country, the fate of the Europ hangs by a thread. With increasing risk of a Greek default, the Euro may slip against the dollar from its current high of 1.298/dollar.

Euro against dollar

After a brief rally that surged the Euro to 1.298 against the dollar, the looming threat of an European recession spurred by failing austerity measures in Greece and Spain has once again triggered a downward spiral of the Euro against the dollar. The coming few weeks will be crucial for forex traders are (more…)

Euro rises to a 4-month high against the Dollar as the German Constitutional Court Approves of a multi-billion Euro Rescue Plan

The German constitutional court on 12 September, 2012 approved of the German government’s participation in the Euro zone’s latest rescue plan, pushing the Euro to a 4-month high against the dollar and other currencies. The Court allowed the government to contribute as much as €190 billion Euro to the rescue plan without having to take permission from the German parliament. These terms buoyed the sentiments in the forex market, which was expecting tougher terms from the Court.

German court verdict supporting EURO raise

Within hours of the Courts verdict, the Euro rose 0.35% against the US dollar to close at 1.2899. It continued to rise on 13th September, when it closed at 1.2985. (more…)

The Euro weakened on Tuesday, falling 0.2% against the dollar from the two month high it reached on 31st August, which had seen some investors optimistically forecasting that the currency was rallying.

This came after the European Central Bank (ECB) stated that they will be prepared to buy bonds with maturities of up to 3 years. Despite investors welcoming this news, the fall reflects their fears that it may not be enough to contain the European debt crisis.
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Dominating Forex trading news is the Euro’s continued decline versus the dollar. The new low of 1.229 has hit many traders and this trend is predicted to continue for some time. The faltering of the Euro is seen to have been partially caused by fresh Greek unemployment figures, this data now showing that the number of jobless youths in Greece has hit a record high.
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In recent Forex trading news, it is clear that all eyes continue to be on the economies of both Spain and Italy. Although the ECB’s intervention into the Spanish sovereign debt crisis initially raised investor sentiment, a subsequent backslide occurred, causing Spanish bond rates to hover near the dangerously high level of 7 percent. If we combine this factor with Spain’s request to be given more time to reach its deficit targets in exchange for further domestic austerity measures, (more…)

The global currency markets accounts and balances are awaiting clearer prospects. This is due to the great concern of the now well-known Greek crisis. The crises has been temporarily mitigated by the cancellation of debts and new loans.

Greece in focus

In terms of international currencies, Greece is in focus. An agreement was signed on debts by private lenders and applies to investors holding government bonds. This has been possible since Greece decided (more…)

After the IMF, EU and the ECB put a 750 billion package to save the Euro and supporting Greece, the interventions from ECB has become inevitable. The euro’s not able to rise and the pressure is huge right now that the currency will continue to fall.

Lets see how big the pressure will be and whether the euro can continue to remain at similar levels, or if considerable (more…)