FOREXYARD: Forex News Blog | |
- U.S. Markets Remain Down
- ECB to Enact New Measures
- IMF to Intervene in Bond Markets
- Greek Debt the Main Focus at EU Meeting
- Greek Debt Woes Continue
- EU Ministers to Discuss Stimulus Package
- EUR Decline Halted by Bond Purchases
- Japanese Data Mixed
- British Mortgage Approvals on Steady Track for Growth
- Australian PPI Sees 0.8% Q2 Growth
| Posted: 07 Oct 2011 07:56 AM PDT
Positive employment numbers helped the U.S. stock markets jump significantly during late Friday afternoon trading. Despite the gains, the credit rating downgrades of Spain and Italy put a damper on trading soon thereafter. Many view this as a sign that no matter how good or bad the U.S. economy performs, the EU debt crisis remains the primary source of investor's lack of confidence. Furthermore, the downgrade of Spain and Italy's credit rating further signaled the uncertainty in measures taken by the ECB and EU in recent weeks to alleviate the debt crisis. |
| Posted: 06 Oct 2011 08:32 AM PDT
Thursday afternoon the ECB enacted multiple measures to help alleviate the financial crisis currently hitting the EU. First, the ECB plans to once again buy covered bank bonds and would implement measures for refinancing slated to last a year. This is not the first time the ECB has implemented such measures, the first time being in 2009. Those previous efforts had mixed results in staving off a complete meltdown following the U.S. financial crisis. While investor confidence remained shaky following the announcement, many hope this will successfully restore liquidity among EU banks. |
| IMF to Intervene in Bond Markets Posted: 05 Oct 2011 08:38 AM PDT
After much deliberation the IMF has indicated that it may indeed intervene in bond markets as it anticipates the Greek bailout package to be modified. This move has the support of a number of countries currently facing debt crises such as Spain and Italy, which are encountering their own set of problems stemming from the financial downturn. While countries such as these don't face the same level of insolvency as Greece, for example, they do suffer from a lack of investor confidence. Therefore, a move on the part of the IMF to boost bonds could help reinvigorate some euro zone economies. Ultimately, this will shore up additional economies in the EU which dovetails nicely with what EU finance ministers set forward as their own plan just this week. |
| Greek Debt the Main Focus at EU Meeting Posted: 04 Oct 2011 01:32 AM PDT
Following Tuesday's meeting with top European Union finance ministers, there remains much doubt regarding the ability of the Greek government to meet its debt obligations. While there were several other topics discussed, such as shoring up other euro zone economies, the Greek debt crisis was the main issue addressed. EU ministers are being forced to review the most recent bailout package handed out to Greece as it is becoming clear that the Greek government is not hitting its target budget for reducing deficit. In order to protect other EU countries, the union's finance ministers have decided to take various measures in order to build up weaker economies in the euro zone. Some ministers are aiming to make Greece's debt woes an issue for private bondholders and creditors to help solve. This idea did gain favor as this would relieve many other struggling economies in the EU from having to further exhaust funds in order to aid the faltering Greek economy. Still, the EU remains in hot water and addressing its myriad problems is not an easy fix by any measure. |
| Posted: 03 Oct 2011 06:41 AM PDT
Financial markets in Europe took another hit on Monday with more news coming from Greece regarding its debt woes. According to a deal brokered with the IMF and the EU, Greece agreed to cut its deficit to 7.6% of GDP. However, as of Monday Greece indicated that this year's deficit would be well over 8%. With this target budget being missed, there is an increased possibility that Greece will default. With news like this emanating from the EU, investors may indeed maintain reservations on the strength of the euro. |
| EU Ministers to Discuss Stimulus Package Posted: 02 Oct 2011 01:15 AM PDT
EU ministers have agreed to meet next week to discuss the possibility of a fresh stimulus package to help bolster weak economic figures coming from the European Union. EU finance ministers will focus on garnering support from the wealthiest euro-zone nations in order to bail out financially weaker nations, such as Ireland and Greece. At the request of both the IMF and the United States, the EU will backtrack on their previous 2009 plan to begin cutting deficits in 2011 as the economic crisis is causing an increase in calls for further stimulus aid. However, some euro zone countries, such as Italy, are somewhat skeptical of the commitment of the more fiscally sound countries to helping solve the economic crisis. Meanwhile, the idea that countries such as Germany and Sweden, who are not currently violating the EU's deficit limit, could now afford to maintain bigger deficits and/or smaller surpluses did gain favor amongst members of the European Commission. The meeting is set for Tuesday in Luxembourg and, at the very least, will clear up some questions as to which direction the EU is heading. |
| EUR Decline Halted by Bond Purchases Posted: 08 Aug 2011 11:13 AM PDT
A sharp decline in the value of the euro (EUR) this morning was offset somewhat after the European Central Bank (ECB) decided to intervene by purchasing Italian and Spanish government bonds. The euro zone has been hit hard by debt contagion spreading to its peripheral countries with more force. Weathering this storm will require crafty work by the ECB in the days ahead. The ratings downgrade of US debt by S&P's ratings agency has caused a stir in financial markets, though few see the move as strongly affecting dollar values yet. A big loser in the downgrade has been non-US financial markets that are seeing more disruption by the turmoil recent events are causing on the economic landscape. Europe's intervention may not be the last of its kind by world leaders in the weeks ahead. Read more forex trading news on our forex blog. |
| Posted: 08 Aug 2011 11:12 AM PDT
Reports issued this morning by the Bank of Japan (BOJ) have created mixed results. The intervention by the BOJ in forex markets last Thursday has caused several swings in currency values over the last few trading days. This morning's data releases are generating similar movement. Annualized data on bank lending revealed a 0.5% decline, highlighting what many had already assumed was a suppressed lending market amid the recent turmoil in Japan over the past year. The island economy's Current Account also revealed sluggish growth in its trade balance, failing to meet market expectations. However, the Economy Watcher's Sentiment index rose by over 3 points to 52.6 this month, underlining a recent uptick in financial outlook which was largely unexpected. Read more forex trading news on our forex blog. |
| British Mortgage Approvals on Steady Track for Growth Posted: 25 Jul 2011 08:48 AM PDT
The housing market, which has seen modest growth globally these past two months, was seen steadily advancing in Britain with this morning's publication of mortgage approvals in the UK. The British Bankers' Association (BBA) published its report on the overall number of mortgage approvals for the last month and revealed a figure slightly above forecasts. The expected result was for the approval of roughly 31,300 new mortgage approvals by Britain's primary banks. The report revealed that approximately 31,700 new mortgages were approved, supporting recent findings that the housing market is stabilizing worldwide through these summer months. |
| Australian PPI Sees 0.8% Q2 Growth Posted: 25 Jul 2011 08:47 AM PDT
The Australian Bureau of Statistics published its latest quarterly findings on the nation's producer price index (PPI), a measure of inflation at the producer level of the economy. The report measures the percent change in inflation on a quarterly basis for Australia and is connected to the economic growth of the Australian economy. The forecast for this important quarterly report was for a mild 0.6%. The actual results of 0.8% has so far helped the Australian dollar (AUD) experience mixed swings in value as global investors grapple with debt concerns in the United States. The Aussie is typically linked to growing risk appetite and commodity prices. As either decline, so goes the AUD. |
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