Posts Tagged ‘Euro’

The yen rose more than 1 per cent against the dollar and the euro on Tuesday (July 26), as traders dialled back expectations of how much new stimulus Japanese authorities will inject into an ailing economy.

The Bank of Japan is expected to announce expanded asset purchases and a rate cut further into negative territory at the end of its policy meeting on Friday (July 29).

Meanwhile the government is compiling a spending package that some sources have estimated could be worth up to 20 trillion yen. But a Nikkei report on Tuesday (July 26) said direct fiscal stimulus into the economy would amount to about 6 trillion yen over the next few years.

(more…)

Sterling was firmer on Wednesday (July 13), trading near a two-week high against the euro as Theresa May was set to take over as Britain’s prime minister, easing some of the political uncertainty that has dogged the currency in the past few weeks.

Traders will keep an eye on who will be appointed as finance minister with many awaiting for clarity on the new prime minister’s detailed thinking on triggering Article 50, the procedure for exiting the European Union.

May has said “Brexit means Brexit”, but added Britain will not rush to trigger the formal divorce proceedings. The uncertainty over whether Britain will be able to retain access to the single market after exiting the EU, along with expectations that the Bank of England could cut rates on Thursday (July 14), are likely to make traders wary of sterling.

(more…)

The pound tumbled to a new 31-year low on Wednesday (July 6), at one point dipping below $1.28, on fears over the effect of last month’s Brexit vote on Britain’s property market and the prospect of cuts in Bank of England interest rates.

The pound, one of the main vehicles through which financial markets can express concern about Britain’s decision to leave the European Union, fell as low as $1.2798 in Asian trading, its lowest since June 1985. It recovered to about $1.2891 in afternoon trading in London.

That still left it more than 13 per cent weaker than it was before the June 23 referendum, and about 1 per cent lower on the day.

(more…)

Less than two months after Goldman Sachs Group Inc. softened its short-term euro forecast after a central-bank policy meeting, the bank is doing the same with the yen.

Japan’s currency is likely to strengthen until Bank of Japan Governor Haruhiko Kuroda rolls out or signals additional stimulus measures, analysts led by Robin Brooks, the bank’s chief currency strategist, wrote in a note to clients on Monday.

(more…)

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.
(more…)

Following an ease of momentum concerning the Euro-Zone data, online forex trading has slowed down for the second week of June. On the back of a promising first week of the month, the fears of a possible default on payments from the Greek government and a Euro-Zone exit have resurfaced after negotiations in Brussels broke down.

As the week begins, Gold is still trading within a narrow range while staying under the $1190 resistance.

Supported from $1180, online forex trading will potentially see similar prices as last week where gold had support at $1180 and rose to a $1200 resistance.

The trend for the previous two months has been an attraction to the $1200 resistance, which is a key level.

Two weeks ago, the price on Gold fell through this level and down to $1170, the lowest in six weeks. Overall, though, Gold has tended to gravitate to $1200.
(more…)

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.
(more…)

In the latest round of currency trading news, two main events have recently dominated the currency landscape. The first main concern is the recent decision by the United States federal government to continue its policy to maintain its current levels of quantitative easing.
(more…)

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.
(more…)

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.
(more…)

It seems that many investors feel that the euro has turned a rather pivotal corner during this past week. The multinational currency finished off the week of the 21st at a ten month high in relation to the dollar.

This has been interpreted by many as a sign of a heightened sense of confidence in the European banking sector.

There are even rumours that we may see the euro currency test the 2012 resistance levels of $1.35 in the short-term. Nonetheless, the week ahead is of critical importance for the perceived strength of the euro.
(more…)

All eyes will be on the Eurozone this week as a welter of news upturns expectations in the run up to Thursday’s EU Summit in Brussels. Spain in particular is breathing a little easier today, following Moody’s decision not to downgrade its credit rating to ‘junk’ status.

The country’s debt remains in the investment grade, though by the slimmest of margins. Moody’s reaffirmed their Baa3 rating with a negative outlook, citing progress on economic reforms and bank restructuring domestically, and continued ECB bond-buying for the Euro periphery.
(more…)

Euro News – Greek Bailout Unlikely as Country’s Deepening Financial Crises Continues

As Greece continues to fail in securing its next ECB bailout, the country’s financial crises only looks set to deepen.

The Euro, which has pared the overnight advance to 1.3046, is likely to face even more near-term headwinds in light of the continuing Greek financial crises. The ECB, European Union and the IMF (Troika), will re-assess Greece’s financial commitments in a week’s time, within which the 11.6B austerity programme – which many feel will not be enough -will remain under review. On the other hand, recent news that Greece may plan on introducing additional taxes is thought could raise an additional 2B in EUR.

Online forex traders will want to take note that President Axel Weber, former president of Bundesbank, has expressed concerns that the ECB may only simply be (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.
(more…)

In the latest forex news, the US dollar has slid considerably in comparison to other major currencies.

While earlier this month many forecasts were bullish regarding the dollar’s upward trend, analysts have now scaled off this position and are taking a more contemplative approach.

Indeed, the dollar may slide further as is possibly indicated by the relative strength index (RSI) which appears to be setting the stage for a downward trend in the weeks to come. This is especially relevant considering that the Jackson Hole Economic Symposium is on schedule for the following week.

Although the bearish stance for the dollar may continue temporarily, should chairman Bernanke not hint at another round of QE3, sentiments may begin to reverse.
(more…)

The week ahead looks to highlight concerns underpinning the European sovereign debt situation. The main story still is that of volatility on the European market; the single currency’s future viability questioned by many traders worldwide.

Spain is becoming more and more of a concern

The concerns with Spain’s ability to manage a flailing economy have grown since the IMF rescue package was approved. Spanish yields have tipped well over seven percent, trading at 7.39% after hitting a European-era high of 7.56%. Attempting to mitigate further volatility, Spain has banned short selling for three months while Italy, feeling the effects as well has banned short selling financials for one week. There are now fears that Spain may indeed seek a full bailout, as regional governments have begun to express concern for their ability to manage internal debts. Spanish and Italian bank shares were the worst hit followed closely by their domestic indices; the Ibex at one point dropping nearly five percent.

Greece’s debt reduction

Furthermore, creditors are expected to begin auditing Greece’s progress on debt reduction. This audit determines whether the country is to be approved for an additional 31.5 billion euros. With political and social unease, a quickly shrinking economy and many investors questioning whether Greece will meet its August deadline, there has been speculation of true insolvency should their financial situation worsen.

EUR/USD at two-year low

Because of these protracted jitters, the euro has fallen to a two-year low against the US dollar to trade at $1.2082. Furthermore, it has fallen to an eleven-year low to the Japanese yen. Below $1.20, many online Forex traders have taken a bearish stance.

Euros long term survival

On the other hand, some Forex traders have taken the attitude that any position would have to be long due to such market volatility. This, of course, is under the assumption that the euro will remain in its current form. Indeed, the lack of real movement in the precious metals markets, traditional safe havens, illustrates that many believe the markets may incur still more losses in the near term. Nonetheless, taking a long position in the euro may indeed be one of the few hedges against what remains as the most volatile era for decades.

This past week has seen a number of financially important events; from Greek election results to Spanish bonds surpassing all-time highs. Any signals of enthusiasm regarding Greece’s elections quickly faded and the overall value of the Euro has continued on a downward trend. The forex bears still seem firmly in place in both European and international market trading.

While the immediate threat of an imminent Greek default being averted initially caused a slight rally in European markets, a broader analysis revealed investors’ sentiment still remains shaky; (more…)

Greece’s recent general elections had much of the world holding their breaths as the fear that an anti-Eurozone party would come out victorious. The doomsday scenario many feared was that Greece would revert to the drachma and cancel its bailouts, leading to massive losses for the Eurozone as well as the potential for an even greater disaster, with Spain and Italy teetering on the edge. Fearing excessive volatility on the markets some online Forex trading brokers even shut down private trading on Sunday, the 17th of June.

While the “end of the Eurozone” scenario did not come to pass as the pro-Eurozone (more…)

Regardless of the outcome of today’s Greek elections, get ready for a hectic week in the marketplace!

With Greece holding elections today, we thought this may be a good time to let you know how this event may impact the marketplace when it reopens at 21:00 GMT tonight. Following the failure of Greek politicians to form a new government after the first round of elections in May, nervous investors sent riskier currencies and commodities plummeting. Now with new elections being held, the prospect for fresh market volatility is virtually guaranteed.

(more…)