Posts Tagged: CHF

The European crisis continues to affect the entire world, especially as the disputes between France and Germany do not seem to get to an end. The two countries have different perspectives upon the way in which the sovereign debt crisis in Europe should be solved and it is likely that we are not to make any mistake by saying that the financial crisis and the decrease of the Euro is not to get to an end unless the two countries find a common solution.

The problem these countries need to solve is that of whether they should share debts amongst the Eurozone states or to simply impose austerity measures upon the countries which are already faced with financial issues. The fact is that, unless they find a solution to this problem, the Euro will continue to remain in danger. The Euro has had a difficult week due to these events and it continues to trade influenced by Read more »

The previous trading week has been dominated by an increasingly good sentiment which has known quite an expansion at the end of the week. This risk appetite has had quite a negative effect upon safe-haven currencies throughout the week, causing the most damages to the US Dollar which is already in a difficult situation due to the fact that banks all over the world are doing their best in keeping the value of the currency low so that the global economic crisis does not have so many bad consequences upon their economies.

Friday was the first day when the US Dollar started to grow a little, suggesting the fact that the risk appetite sentiment may be over. This growth has also been correlated with the fact that the European concerns are not yet totally over and with the fact that the fundamental data concerning the US showed some positive figures. The US manufacturing PMI grew from 50.8 Read more »

There have been lots of changes on the trading market after the announcement regarding the decisions taken at the Group of Twenty summit regarding the European sovereign debt crisis. The Euro jumped immediately afterwards and continues to have a positive trend although we cannot be sure for how long as the decisions taken by the European leaders seem to have positive results only on short term. However, this affected other currencies as well, such as the Swiss Franc and the Great Britain Pound, which have had a rather surprising evolution, gaining against some currencies and losing against others.

The Swiss Franc has gained on the problems in Europe since the beginning of the crisis because the currency was known to be a safe-haven. At the moment, it is rather difficult to continue to consider the Swiss Franc as a safe-haven due to the decision taken by the Swiss National Bank of pegging the currency to the Euro. This Read more »

As the problems in the Eurozone go on unsolved, the Euro started to fall this week as optimism has turned into risk aversion. Of course, this change has been benefic for the Swiss Franc, which has registered growths on concerns related to the situation in the European Union.

Even though there have been traders who have believed that the optimism shown two weeks ago, which has caused the Euro to grow incredibly, is going to persist for the previous week as well, reality shows us that the Euro started to fall on concerns related to the evolution of the sovereign debt crisis. The attention of traders has focused on the Group of Twenty summit and in the possible changes of the bailout fund, both of which have had a negative impact upon them. Initially, the sentiment related to these events has been a positive one, but it had gradually turned into a negative one as doubts started Read more »

It seems that there have been some misunderstandings between France and Germany on the matter of the EFSF today, which have caused some problems concerning the sovereign debt crisis solutions. The European leaders have stated, at the end of the day, that these discussions have been solved and that the two countries are now in full agreement. The basis of the discussions has been the measures which should be taken in order to solve the bailout issue in Europe. The bailout facility is absolutely necessary in order to prevent the sovereign debt crisis from spreading. The situation has been made worse and the concerns grew in regard to the recent downgrade of Spain’s credit rating.

The recent news regarding the disagreements between the French and the German representatives have caused traders to get scared and to believe that there are chances for the European leaders not to achieve a solution this time either. This piece of news Read more »

The situation in the Eurozone tends to become more and more complicated as the European officials do not seem to manage to find a solution which is suitable for everybody. The European Central Bank has warned the officials today about the risks entailed in the decision of requiring the private sector to have a more active role in the sovereign debt bailouts. Lately, Germany has been putting up efforts in order to persuade the private sector to get more involved in the purchase of private bonds, but it is now that the ECB announced that such a financial measure is not exactly proper as it might put the entire Eurozone at a risk.

It has been back in July that the European officials decided that the private bondholders could have a 21 percent stand in the bailout for Greece. At the moment, Germany believes that these private bondholders could invest more and the officials in each European country 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 »

The European debt crisis aggravates from one day to another. As the Italian rating has been downgraded today, there are more and more concerns about the viability of the European Union. In order to try and find a solution to these problems, the finance ministers of the countries in the European Union met today to discuss the sovereign debt crisis issue, especially the situation in Greece, but the meeting ended with no noticeable results. All this indecisiveness of the European politicians had a very bad effect upon the European currency, which has recorded once more losses against its major counterparts. But this is not the only European currency which performed badly today, as the Swiss Franc also registered losses based on the speculation according to which the Swiss National Bank is going to impose new measures in order to prevent the overvaluation of the nation’s currency.

When it comes to the problems in the European Union, the most Read more »

This has been quite an interesting trading week as there have been lots of changes on the market. Not only that the macroeconomic reports have shown weak data about almost all the countries, fact which has made currencies lose value, but also the Swiss National Bank announced the fact that it has taken the decision of imposing a fix trading rate for the EUR/CHF pair, that of 1.20 in order to stop the overvaluation of the nation’s currency. Despite this additional measure, the Swiss Franc continued to grow against its major counterparts.

The previous week has been quite bad for the Great Britain Pound which has registered the greatest weekly fall against the US Dollar in nine months. This has been possible based on speculation that the weak UK economy is to force the central bank to maintain the interest rates at the record low level. From a virtual point of view, all the fundamental data concerning the 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 »