SubscribeAll Posts Tagged With: "ECB"
Deflation Coming to Europe?
Eurozone consumers expect prices to continue to slide over the next few months, raising concerns about a deflationary spiral in the European bloc, the Financial Times reported.
According to a July survey conducted by the European Commission (EC), expectations that prices will fall reached their highest level since the commission began tracking comparable data in 1985.
The same survey also showed that excess manufacturing capacity is at its highest point since at least 1990 – another indication that the 16-nation Eurozone region is flirting with a prolonged period of deflation where consumers are reluctant to spend and retailers are forced to…
3Aug2009 | Money Morning | 0 comments | ContinuedRALLY IN RISK PUTS PRESSURE ON THE DOLLAR TO THE DOWNSIDE
We are seeing a light revival in risk appetite putting downside pressure on the dollar. The EurUsd rose nearly 100pips to the mid range of 1.29, while the UsdJpy fell roughly 50pips to the bottoming out around 89. The GbpUsd gained 50pips pushing the pair back above1.43 ahead of the BoE meeting scheduled for this week. Equity markets are positive in the US and Europe with the Dow higher by 1.7% or 141pts. Bond yields followed suit as rates jumped higher across the UST curve, notably the 10 and 30yr saw the largest moves up 16 and 20bps respectively. Commodities…
3Feb2009 | Advanced Currency Markets | 0 comments | ContinuedEuropean Central Bank (ECB) Drops Rate to 2.0% as Europe Falls Further into Recession
The European Central Bank (ECB) today (Thursday) cut its benchmark interest rate by half a percentage point to 2.0%, an acknowledgment that the Eurozone economy is rapidly deteriorating amid the global financial crisis.
“Looking further ahead, we continue to see global economic weakness,” ECB President Jean-Claude Trichet said in a statement. “The euro zone should over time reap the full benefits…of policy measure announced over recent weeks.”
The ECB, which prides itself on its hawkishness, has now shaved 2.25 percentage points off its key rate since October, as the financial crisis has broken down economies throughout the region.
The Eurozone – the…
16Jan2009 | Money Morning | 0 comments | ContinuedRISK AVERSION RETURNS TO THE MARKET PLACE
The dollar rallied against most of the majors with the exception of the yen. The EurUsd dropped 108pips to the mid range of 1.33, while the UsdJpy declined 112pips to the low 89 price area. The GbpUsd dropped substantially, down roughly 350pips finding support at 1.48. Equity markets moved south on rising volatility and uncertainty regarding the financial markets. The Dow was off 1.46% or 125pts and the SPX dropped 2.26% or 20pts which was consistent with price behavior in other asset classes. Bond buyers were back in full swing, purchasing UST as all parts of the curve driving in…
13Jan2009 | Advanced Currency Markets | 0 comments | ContinuedUS SESSION: RALLY IN RISK APPETITE LOSING STEAM, DOLLAR RISES.
The dollar gained strength against the majors as rally riskier assets subsides in early trading. The EurUsd fell a bit over 100pips to the mid 1.29 level, while the UsdJpy moved slightly lower to 95. The GbpUsd dropped 125pips to the mid range of 1.53, consistent with the pullback in other asset classes. Equity markets opened lower in the US with the Dow down 100pts, following the trend of European stock indexes. Commodities are mixed with crude oil higher by 2.3% at $51bbl, and gold marginally lower at $814oz. Bond yields fell with the 10 and 30yr tighter by 10…
26Nov2008 | Advanced Currency Markets | 0 comments | ContinuedECB Cuts Interest Rate by Half Point as Recession Grips Eurozone
The European Central Bank (ECB) today (Thursday) cut its benchmark interest rate by half a point to 3.25%. The reduction was widely expected, as economic growth has supplanted inflation as the central bank’s chief concern.
“Interest rates have to be appropriate for the economic environment,” ECB council member Axel Weber said Oct. 30. “If the economy cools, then rates have to come down rapidly so one doesn’t risk falling behind the curve.”
Gross domestic product (GDP) in the 15-nation Eurozone contracted by 0.2% in the second quarter, and the European Commission said Nov. 3 that the economy probably shrank by 0.1% in…
6Nov2008 | Money Morning | Comments Off | ContinuedLikely EU Recession Paves the Way for Greater ECB Influence
The European Commission (EC) said yesterday (Monday) that the Eurozone economy has already slipped into a recession and strong and stable economic growth will not return until 2010. The European Central Bank (ECB), originally charged with the task of maintaining price stability, has now found itself with the added responsibility of encouraging growth and will likely cut interest rates later this week.
Gross domestic product (GDP) in the 15-nation Eurozone probably contracted by 0.1% in the third quarter after shrinking 0.2% in the second, the European Commission said. The executive branch of the European Union also lowered its 2008 forecast 1.2%…
4Nov2008 | Money Morning | Comments Off | ContinuedUS SESSION: STOCKS CLOSE OUT WEEK STRONG, DOLLAR
The dollar resurged in intraday trading posting strong gains against the majors as the risk aversion trend continues influence market movements. The EurUsd sunk 200 pips to the low range of 1.27, while the UsdJpy declined roughly 60 pips finding support at 98. The GbpUsd collapsed 360 pips to the high 1.60 price area on higher volatility. The equity markets rallied in the US and Europe with the Dow strengthening by 1.5%, while the FTSE picked up 2.00%. Commodities were mixed oil rising 3% to $67bbl and gold sliding 2% to $724oz. Bond yields were slightly tighter at the shorter…
31Oct2008 | Advanced Currency Markets | Comments Off | Continued
Loading ...
