Posts Tagged: Bailout

Today, the euro managed to rise against the US dollar and against other important currencies after the Spain reports considered requesting a line of credit after the credit line from the bailout fund of Europe. The currency climbed to $1.2973 in Tokyo and up to $1.2953 in North America.

The European Council President Herman Van Rompuy has created a plan in order to improve the situation in the euro zone. Gabriele Steinhauser explains how to euro zone plan isn’t have and how it can put the neighboring on a serious edge. The Financial Times stated the fact that the country was prepared to make a formal request, but the announcement was delayed due to the fact that it could affect other euro-zone countries such as Italy.

Michael Turner, the currency strategist at RBC Capital Markets stated the fact that if the story is true and the timing is right, the euro currency can gain further support. Also, Stan Read more »

The discussions between Angela Merkel and Nicolas Sarkozy related to the situation in Greece and in the European Union have had a major impact on the trading market today. In the meeting yesterday, the German Chancellor, Angela Merkel, and the French President, Nicolas Sarkozy, discussed about the measures that need to be taken in order to maintain Greece in the European Union and find a solution for the crisis, announcing that they have set a three0week deadline to themselves for recapitalizing banks and finding a “durable” solution to the sovereign debt crisis. It is at this moment that Merkel stated that they are to do “everything necessary” in order to make sure that the European banks have enough money. As well, Sarkozy announced that the plan they come up to for saving the European financial system is going to be presented at the Group of 20 summit which will be held on the 3rd of November.

Based Read more »

There has been economic news today which makes us believe that the risk aversion is falling again. The European debt crisis seems to find solutions on the aid from China, while the Canadian market seems to evolve slowly, but certainly. Based on these facts, the Canadian Dollar and the Japanese Yen have registered growths against most of their major counterparts.

The Canadian Dollar gained territory against its major counterparts due to the fact that the value of stocks and the one of the crude oil have advanced. This evolution has reduced the risk aversion which has been once more detected on the trading market and has improved the prospects of the growth-related currencies. It seems that the pessimistic outlook on the markets seemed to recede a little, despite the fact that there are lots of market analysts who believe that this evolution is not going to last for a long period of time and that the risky assets Read more »

Just when we thought that things will get better in the Eurozone, concerns started to grow again. This is due to the fact that the elections in Germany went otherwise than expected, Angela Merkel no longer being elected, which means that there are high chances for the new elected party not to sustain the bailout system anymore. Moreover, the problems in Greece seem to intensify, making the situation worse. Also, all the macroeconomic reports related to the UK showed disappointing figures, while the Swiss National bank took the decision of imposing a fix exchange rate for the EUR/CHF pair of 1.20 in order to stop the overvaluation of the nation’s currency. All these facts resulted in imposing a tensed mood in Europe, making traders fell risk aversion once more. And this has had lots of influences on the other currencies in the world, such as the New Zealand Dollar or the South African Rand, which have experienced losses Read more »

The concerns related to the Eurozone continued to grow today. They have been left behind during yesterday’s trading due to the fact that trader’s attention has been distracted by the severe measures imposed by the Swiss National Bank. The decision of the SNB of imposing a fix exchange rate for the EUR/CHF pair of 1.20 in order to prevent the national currency from growing excessively, has caused a strong reaction on the markets, as the Franc got sold off by over 8% against most of its major counterparts in a very short interval. It seems though that the situation has settled quickly as the attention of traders shifted immediately, turning towards the problems in the Eurozone. There are rumors concerning the fact that Greece is likely not to receive the next tranche of the bailout unless the conditions imposed by the EU leaders are met. A delay in the delivering of the bailout would cause another debt crisis Read more »

The situation in Europe becomes, once more, serious due to the fact that there are some countries which are confronted with internal issues. This type of evolution affects once more the trading market, as traders will be driven towards safe-haven currencies once more.

The Euro is in trouble as a reaction to the fact that Germany’s ruling party has lost the elections. This has caused the level of confidence among traders to drop, making the Euro fall for the fifth day in a row, especially against the safe-haven currencies, such as the US Dollar and the Japanese Yen. It is official now that the Christian Democratic Union, the party of the German Chancellor Angela Merkel, has lost the elections this year in all of the six German states. The results of the elections have caused a wave of concerns among traders due to the fact that this may mean that the party to rule since now on Read more »

Euro fell some more today, especially against the Swiss Franc, based on the new concerns regarding Greece and Italy. It has been noticed that, concerning the EUR/CHF pair, new record lows have been reached today. This has happened regardless of the discussions which have now lasted a while between the finance ministers of the Eurozone concerning the ways in which they should act as to solve the economic difficulties from some of the member countries of the European Union and to the ways in which they can persuade investors to calm down and not be affected by the concerning the news which tend to become worse from day to day. One of the news which has impacted the evolution of the EUR/CHF pair is related to the fact that the European Central Bank is now looking for solutions in order to double its emergency loan fund in case there is the need to use it as to support Read more »

The situation of the Euro became worst during the last week due to the fact that the concerns on the Eurozone grew as the situation of Portugal, Greece, Spain, and Italy aggravated. The fact that the Portugal’s rating has been downgraded has caused raising concerns on the Eurozone and its debt problems. Moreover, the fact that Greece has been assigned temporary solutions does not mean that the situation has been solved. The situation in Greece still depends on the ways in which the key euro group meetings and key economic event risk will evolve. The fact that the Moody’s suggested that the future sovereign bailouts are likely to require involuntary private sector participation has caused private bond holders to worry about their future losses on periphery debt, which has caused the outstanding bonds value less on perceived credit risk. The soar of bond yields did not only occur in Portugal, but also in Ireland, Italy and Spain, as Read more »

The previous week turned out to be the best trading week for the Euro since the beginning of the year. The fact that Greece has accepted the austerity measures imposed by the European Union leaders has helped erase the concerns related to the Euro and has had a positive influence on the currency, allowing it to erase all the losses experienced since the beginning of the month.

This great growth is related to the fact that the Greek Prime Minister, George Papandreou, has convinced the Parliament to pass the bills based on which a new wave of budget cuts and asset sales will be implemented. Based on these new austerity measures, Greece will receive a new rescue package on behalf of the European Union in amount of €78 billion. All there measures that are to be taken by the Greek government are to be announced at a ceremonial meeting with the European Union’s officials which is to take Read more »

Despite the progresses made at the end of the previous week, the Euro started again to lose territory against its major counterparts in the overnight trade as the situation concerning Greece faced new impasses as the finance ministers of the European Union did not manage to reach an agreement concerning the release of the fifth tranche of money which would keep Greece from defaulting on its debts.

This impasse couldn’t have been predicted by the market as it looked as if the discussions were making progress last week as the Germany’s finance minister Wolfgang Schaeuble’s deputy, Joerg Asmussen, announce the fact that he is looking forward to the close moment when the European finance ministers would “find an agreement that the IMF and the Europeans can pay out the next tranche for Greece”. This declaration has been made on Sunday, the 19th of June, in Luxemburg. However, this arrangement did not work as the core European Union Read more »