Despite the fact that the fundamental data in the Eurozone has improved, the Euro did not manage to grow based on the fact that the European sovereign crisis continues to have negative effects upon the currency. The fact is that the market continues to be influenced by a feeling of risk aversion which is mainly caused by the difficult economic situation in the world, especially in the European Union. Even though the fundamental factors have shown positive data for the EU countries this week, the Euro remained flat for a period and started to fall afterwards. The consumer price index in France increased to 0.3 percent on a monthly basis in November, after the previous growth of 0.2 percent which has been seen in October. The ZEW economic expectations index for Germany also increased from -55.2 to -53.8 this month. Also, the same indicator has shown improvements for the entire European zone, growing from -59.1 to -54.1 even Read more »
Posts Tagged: GBP
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 European Union’s financial crisis continues to be incredibly strong, having a very powerful impact upon the Euro which has now dropped for the 4th week in a row. The European currency decreased especially against safe-haven currencies such as the Japanese Yen or the US Dollar. As well, based on the fact that even the safe-haven currencies are weak at the moment, it seems that the Euro has also fallen against the Great Britain Pound which seems to be the most powerful European currency at the moment.
Moreover, as there are no signs that the European crisis is to end in the near future, the Euro is likely to continue to fall in the near future. The Italian borrowing costs have reached the highest level since 1997, which has once more reinforced the concerns related to the debt crisis. As far as the analysts see it, the spreading of the crisis is now no longer limited to the Read more »
As the situation in the European Union continues to get worse, with the sovereign debt concerns spreading towards other week countries in the EU, the trading market continues to suffer. Risk aversion started to make a new appearance on the market, despite the fact that traders have tried to ignore their concerns for a few days. This has had a negative impact upon the risky currencies which have fallen this week, but it has definitely been in the favor of safe-havens, which have managed to grow due to this new wave of risk aversion.
The Japanese Yen has been growing throughout the week due to these concerns related to the sovereign debt crisis. This growth is especially related to the surging borrowing costs of the European countries which have had the effect on the trading sentiment, causing traders to let their concerns influence their trading once more. Moreover, as it is true that there are not so Read more »
The previous week has been dominated by risk aversion, but, at the end of the week, traders’ risk appetite started to grow a little as concerns about Europe seemed to calm down on expectations that the situation in Europe is going to improve once new leaders are going to be chosen. But it seems that this week has brought a new turn on the trading sentiment, causing traders to fell risk aversion once more. This is also related to the concerns related to Europe, which have had a powerful impact on the financial markets today, causing not only banks, but also stocks to retreat. The Italian and Spanish bond yields rise and, as it seems that there is no solution for the problems in Italy, it may be time for the European leaders to start considering taking measures in Spain. Of course, not forgetting about Greece as the country continues to be faced with difficulties.
This situation Read more »
The problems in Europe continue to get worse as now the crisis is not only affecting the financial sector, but also the political one. The European Union seems to be more divided then ever after the decision of quitting of the Greek Prime Minister which has triggered other chain reactions, the most important of which being that of the resignation of Silvio Berlusconi, the Italian Prime Minister. Berlusconi was in no mood to resign, but it seems that the result of the elections indicated that he is not wanted by the people, thing which actually means that he now has to. Based on this fact, the trading market is now under the effects of a new wave of risk aversion which has caused high yielding currencies to fall, affecting thus the Great Britain Pound and the Canadian Dollar.
The Great Britain Pound has been struggling today despite of the gains registered yesterday. Equities have been weighting on the Read more »
The European sovereign debt crisis continues with new types of manifestations. Even though most of the events which took place recently were mainly based on finding solutions as to improve the situation in Greece, which was becoming critical, it seems that there are also other regions which now need special attention as the financial and political situation in those areas is becoming worse than expected. One of these regions is Italy, country which is in deep financial problems as well. The fact is that it has been a while since Italy has been faced with economic problems, but the fact that Europe is now also confronted with political issues worsens the situation. The pressures related to the Italian Prime Minister, Silvio Berlusconi, and its political position have caused quite a stir of events on the trading market today, causing numerous currencies to act in a very volatile manner. At the moment, the pressure continues to manifest as traders Read more »
Despite the decision taken during the Group of Twenty summit concerning the solutions to the European sovereign debt crisis, it seems that the situation in Europe is not yet solved as the fundamental data indicates the fact that the European Union’s economy has worsened. This piece of news has increased the concerns relating to which the Eurozone’s problems are too difficult to be solved in the near future.
It seems that even the German economy, one of the Europe’s most solid economies, has been suffering. The retail sales in Germany have increased by only 0.4 percent during September, after the 2.7 percent fall registered in August. Economists were expecting a growth by 1.1 percent, so this is quite a disappointing figure. The problems in Italy seem to have gotten worse, increasing investor’s concerns. The unemployment rate in Italy has grown to 8.3 percent in September from the 8.0 percent registered in August. According to Eurostat, the unemployment Read more »
Even though the situation in Europe seems to have found a temporary solution, it seems like traders continue to be concerned regarding the ways in which the global financial crisis is going to evolve. This has caused an increase in demand for safe-haven currencies, which has immediately had a positive effect upon the US Dollar. The Japanese Yen would have also benefited on this trading sentiment if it weren’t for the Bank of Japan’s intervention.
The US Dollar started to grow today against most of its major counterparts based on the concerns related to the further evolution of the global financial crisis. This has all been caused by the fact that traders started to get concerned relating to the fact that the solution proposed by the European leaders last week are under no circumstances long-term solutions for the crisis. Even though the concerns about Greece started to fade a little, traders are now concerned with the evolution of 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 »