Posts Tagged: sovereign debt crisis

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 »

As the situation in the European Union continues to be tensed, the trading market has a powerful reaction as the risk aversion has triggered a new wave of changes on the market. The safe-havens seem to be favored and the currencies around the world gain based on different speculations related to the evolution of the sovereign debt crisis.

The Euro has managed to regain a little of yesterday’s losses today on the speculation that the policy makers are to increase the rescue fund. The Guardian announced that Germany and France agreed to increase the European Financial Stability Facility from the level of €440 billion ($607 billion) to the one €2 trillion. This change is supposed to take place before the G-20 summit which is to take place this weekend. The Stoxx Europe 600 Index grew by 0.8 percent.

Moody’s has announced the downgrade of another credit rating, that of Spain. This has generated a wave of Read more »

As it could have been expected, the growth of the risk aversion has caused numerous changes on the trading market as it has caused the fall of higher yielding assets and the growth of safe-havens. The main reason for this new wave of risk aversion is the sovereign debt crisis in Europe and the decrease of the trader’s confidence in the results of the Group of Twenty summit based on the previous results of the discussions held by the same European officials, which have been inconsistent.

This has caused the Euro to continue its yesterday’s fall against most of its major counterparts. This is also related to the fact that Moody’s Investor Service has announced yesterday that the credit rating of France is in danger and that the economic sentiment in Germany has deteriorated. By now, Moody’s has explained that the sovereign debt crisis in Europe has had a negative influence upon all the countries in the Eurozone, Read more »

Just like the previous wee, this week will find itself under the influence of the Group of Twenty meeting, which has managed to break one of the market’s trends in order to establish another. The most important evolution of the market is related to the fact that the risk aversion caused by the downgrade of the credit rating of bank in Europe and in Spain did not manage to last for long, but has soon been replaced with a new wave of optimism caused by the optimism related to the results of the Group of Twenty meeting. This means that the trend broke as the volatile price action which has been visible in the p0revious weeks has now disappeared without warning.

This has led to the growth of higher-yielding assets, such as commodities, stocks and other risk-related assets. One of the great evolutions has been that of the Australian Dollar, which has posted gains as big as Read more »

Despite of the global economic crisis and of the numerous problems with which economies are confronted at the moment, the Euro and the Canadian Dollar have managed to finish the week incredibly well.

The Euro has registered this week the biggest gains in the last two years. This is due to the optimism of the Forex traders related to the ability of the European officials of solving the problems with which the European Union is confronted at the present moment. As a matter of fact, this new wave of optimism has had a positive effect upon the currency in the last several weeks, not just now. This is mainly related to the promise made by the German Chancellor, Angela Merkel, and the French President, Nicolas Sarkozy, related to the fact that they are going to find a solution in order to solve the sovereign debt crisis in the European Union. This promise has had a positive effect Read more »

Despite the growth registered yesterday, the Euro started to fall once more due to the concerns related to Slovakia’s approval of the EFSF, which has generated a new wave of risk aversion. Slovakia is the last European country to vote in the matter of the expansion of the bailout fund which is meant to contain the sovereign debt crisis. The news which has generated these concerns arose from one of the ruling parties in the Slovak government which has announced the intention of abstaining from voting the EFSF expansion deal. This actually means that, in order to be able to support this bailout fund, the officials in the Slovak government are to be forced to seek for support in the opposition. Moreover, the fact that Slovakia, which is the last country in the Eurozone to vote for the EFSF expansion deal, is now confronted with this type of problems actually means that the final decision on the bailout Read more »

The Euro is faced with difficulties due to the sovereign debt crisis, which tends to become worse in the European Union. Even though the Euro has had a positive week till the moment when Fitch Rating has announced the decision of downgrading Italy and Spain’s credit ratings, the end of the week has brought problems to the currency, making it fall against its major counterparts.

The end of the week has brought the Euro in the situation of deleting all the gains it managed to gain against its major counterparts. These losses are due to the decision taken by Fitch Rating, that of downgrading the credit rating for Italy and Spain, decision which has caused a new wave of concerns among traders, who have been thus reminded that the sovereign debt problem in Europe continues to be a very important problem. Fitch took the decision of downgrading Italy’s credit rating from AA- to A+ and Spain’s credit Read more »

This has been an important week for the Euro due to the fact that there were risks according to which the European currency is going to be faced with a tremendous fall due to the fact that the sovereign debt crisis continues to be important in the region and to the speculations regarding the European Central Bank’s decision concerning the interest rates.

The decision of the European Central Bank has been taken today and it was that of maintaining the same value of the interest rates, but of expanding the program of bond purchases. The announcement of this decision has caused the Euro to fall at the beginning, but the European currency has managed to rebound afterwards. The European Central Bank has announced today the fact that it leaves its target Minimum Bid Rate at the value of 1.50 percent, decision which has been forecasted by most of the market’s analysts, even though there have been some of Read more »

The global economic crisis continues to have great effects upon the trading market, influencing even the most powerful currencies around the world. Despite the few days of growths, most of the important currencies started to fall today as a result of the concerns related to the global economic crisis which continues to affect most of the world’s economies.

The Euro is one of the currencies which registered losses during today’s trading, especially against the Japanese Yen, against which the European currency fell till the point of reaching a 10-year low. The currency also decreased against the US Dollar and the Great Britain Pound. This negative evolution has been triggered by the news according to which Greece is not to reach its deficit target this year. The release of this news by the Greek officials, along with the discussions related to the possibility of more bailouts has brought up the subject of default once more. A Greek default Read more »