The European Central Bank has said it will still be the return of the emergency measures to contain the debt crisis Eurozone. Any discussion of exit strategy for now is premature. He does know the ECB president Mario Draghi. Previously, however, Draghi said that the worst of the crisis was over.
The eurozone leaders have recently decided to increase the power of the “firewall”, or the bailout funds, a total of 500 billion euros to a total of 800 billion euros. But since the central bank stopped buying government bonds of countries like Italy and Spain, borrowing costs for governments of the euro zone increased again.
Continue reading ECB: there are still risks to the recovery
We can not say that the ten-year anniversary of the introduction of the euro will be carried out in a smile. The euro is currently in a situation somewhat enviable negative growth, falling interest rates, denial of the European Central Bank to be the last lender of sovereign states in difficulty, and so on. The scenarios of explosion of the euro, which were not possible until now, have become more realistic.
Continue reading Technical analysis of forex market Jan 09,2012
One of the key skills of the BoE is to keep annual inflation close to 2.0 percent. The British economy, which is still struggling to get out of the crisis phase, is currently linked to the crisis in the eurozone. The government has predicted that the ‘British economy will grow by just 0.7 percent next year, down sharply from the official estimate of 2.5 percent. The Chancellor of the Exchequer, George Osborne, proposed austerity measures in the most last week, warning that the economy will enter a new recession would break down if the euro area.
Continue reading The Bank of England between inflation and interest rates, Part 2
Many of you have noticed that the price of gold bullion has fallen again, now reaching about $ 1,600 an ounce, from a high of over $ 1,900 per ounce of gold. The fall accelerated last week in response to the concern of the debt in the euro area. You might think that the crisis in the euro area would be good for gold, since the devaluation of a currency should increase the demand for gold as a store of value and can not be “defiled” by governments and central banks.
However, it seems that when markets fall, investors need more liquidity, which leads them to sell their gold reserves, which are very liquid and thus easier to sell.
Continue reading It could be a good time to invest in gold
Few days ago, Moody, note rating agency, has threatened the United Kingdom to pursue a downgrade in the rating of the country, which is now in Triple A. Even if the British government has sought to blame the euro crisis of this statement, something from which I could actually depend on, Moody explained that their decision is mainly the result of poor economic prospects of the United Kingdom, which is a lower growth and a increased debt, a deficit larger than that of the past.
Continue reading For we must not always believe the rating agencies
Britain and its ratings are threatened by the crisis in the euro area, Moody’s does know. The rating agency said that the Triple A of the United Kingdom is currently still not sure, but also indicated that there are new challenges to overcome to be able to maintain. The ability of Britain to absorb further economic shocks, while maintaining the stable outlook has worsened in the last year, due to weak economic growth.
The verdict is a blow to the chancellor George Osborne and his coalition. The outlook on the rating is probably also sensitive to future developments of the debt crisis in the euro area, even if the UK is not part of the monetary union.
A rating downgrade would be rather embarrassing for Osborne, but basically it will raise borrowing costs that may jeopardize the economic recovery already in trouble.
Continue reading England could lose its triple-A
At least four are the main issues that have yet to be resolved, after the EU summit on Friday how much money is needed to protect the ‘Italy by a speculative attack, what to do if the banks were to stumble because of the crisis, discuss the isolation of Great Britain and, not least, if the treatment were decided in Brussels cure the disease in the euro area.
The crisis is far from over and there are risks that the agreement in Brussels to take hold until late summer 2012, as soon as possible. The agreement, according to which euro area accepts more surveillance and monitoring of national budgets to be part of the European Union ‘, was a big step forward. Despite its great slow it has come to this decision, the end markets have limited the options of political leaders and led everyone to give more support to the euro.
Continue reading The underlying problems remain EU
To get an idea of how vulnerable the U.S. economy if the euro were to crack, let’s start talking about the volume of U.S. exports to the euro area, 153 billion dollars in the first six months of the year. To this we must add several hundred billion dollars in investment by U.S. banks to the euro area, and a value of several billion dollars in other financial contracts between the two economies.
While EU leaders meet this week to try to resolve the debt crisis and to prevent the breakup of the eurozone, the U.S. politicians, business leaders and financial analysts are watching anxiously.
Continue reading The scenario of default by the U.S. also saw the European
The Wall Street executives in a private meeting with a senior official of the Federal Reserve in late September, have recommended to set up a coordinated effort by central banks to remedy the financial crisis the European Union. The meeting preceded a joint action carried out yesterday by the major global central banks, which have teamed up to provide liquidity to markets by the low-cost loans in U.S. dollars.
It was not possible to determine exactly what led the Fed and other central banks to act, but it definitely liked to markets. Analysts say there are now expectations according to which central banks can do more to alleviate the crisis.
Continue reading Wall Street has pushed the Fed’s action in Europe
EUR / USD
The euro is in crisis, for the session today, we might consider opening a long position, or in the purchase, if the value of the exchange ratio should break to the upside the 1.3385 threshold, setting the first goal at a height of 1.3400 and the second target at an altitude of 1.3420. If the value of the exchange ratio, however, falls to the bottom to break up the share of 1.3250, we could open a short position with first and second objective lens 1.3230 1.3210.
EUR / GBP
For today’s the day of this cross currencies might consider opening a long position if the price of this share exchange ratio should break the rising share of 0.8640, setting the first goal at a height of 0.8650 and 0.8660 share for the second goal. If the exchange ratio should break to the downside, the share of 0.8590, we could open a short position as the first goal setting and how to share 0.8570 0.8550 share of the second goal.
Continue reading Analysis of the Currency November 25, 2011