Posts Tagged: ECB

The European currency slipped in Asian Trade, moving away from a seven-week high period against the Greenback and a 7-1/2 month high against the yen before the ECB meeting. The European Central Bank is expected to keep rates at 0.75% in the meeting of Thursday. Investors analyze to see if the President of ECB Mario Draghi will be willing to cut borrowing costs in the future. Teppei Ino, currency analyst at the Bank of Tokyo-Mitsubishi stated the following: “Ahead of the ECB meeting, the dollar and yen are being bought back after the euro’s rise.” The outlook for the yen was discredited due to the expectations of pressure received on the BOJ (Bank of Japan) to take easing steps after the elections of 16th of December. The latest Japanese polls show Shinzo Abe as favorite to win.

Deputy of BOJ, Kiyohiko Nishimura stated on Wednesday that the ECB is likely to debate if the monetary easing in September 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 »

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 »

Asian Stock markets are almost flat and further sell off seems stopped for now. NIKKEI started the day at 9,891.11, previous close was 9,925.92. HANG SENG opened at 21,800.33, previous close was 21,663.16. For this week, we may see the impact of the yen’s renewed strength and worries about eurozone debt crisis. $/¥ was down to 78.45 today. Senior technical analyst at Mizuho Securities, Yutaka Miura said “People are now used to seeing the dollar dipping below 80 yen, but the question is whether this strong yen trend is temporary or is it one that will last for a while. If it lasts for a week, the Nikkei may fall towards 9,500”. According to the latest report released by Chinese National Bureau of Statistics, China’s gross domestic product expanded at a rate of 9.5% in the April-June quarter and June industrial production improved 15.1%.

Today we see EUR, GBP and AUD trying to recover against USD. Yesterday Moody’s Read more »

Asian Stock markets opened lower today as the U.S. jobs data soured investor sentiment. The Nikkei average also weakened by profit taking on gains made last weeks. NIKKEI started the day at 10,069.01, previous close was 10,137.73. HANG SENG opened at 22,542.91, previous close was 22,726.43. Investors had high expectations for the U.S. employment data, but they were disappointed as U.S. unemployment unexpectedly increased. Now investors’ focus turns to Japanese and U.S. corporate earnings. Trading volume today is low in the Nikkei ahead of U.S. earnings reports. Currency strategist at Mizuho Asset Management, Takashi Aoki said “The argument has been that, although the job market is weak, earnings have been good, so it will be a shock if we get negative news in the earnings department, as well”. It seems that investors are cautious and they want to see outcome of earning reports this week before they decide on their next step.

Even though the latest report showed Read more »

After better than expected U.S. data, Asian Stock markets open higher today. NIKKEI started the day at 10,205.71, previous close was 10,071.14. HANG SENG opened at 22,784.50, previous close was 22,530.18. The Nikkei index traded at four month high today on hopes that the recent slowdown in economy is temporary. Fund manager at Chibagin Asset Management, Hiroaki Osakabe said “The Nikkei’s comeback is quite remarkable and faster than I had expected. Macroeconomic data from the U.S., which was really poor in mid- and late June has recovered quickly and that’s helping the Nikkei”. Investors think that if the U.S. jobs figures, which will be released today, don’t disappoint then the Nikkei may rally higher. Japan Ministry of Finance released its Current Account report today. According to the report, Japan’s current account surplus narrowed less than economists forecast in May. Japan’s current account surplus fell 51.7%. Data also showed that Japan’s exports fell in May and the trade balance Read more »

The fact that Europe is now confronted with quite an intense and difficult debt crisis did not prevent the European central Bank from deciding to increase the interest rates by 25bpm up to 1.5 percent. Even though this decision does not come as a surprise, both due to the fact that the head of the European Central Bank, Jean-Claude Trichet has mentioned the possibility in a previous meeting and to the fact that the Eurozone is confronted with inflation pressures, this decision is to aggravate the situation of the 17-nations using the Euro and it will also cause the currency to loose ground against its major counterparts. This is the second increase of the European interest rates this year and it is mainly focused on the “day job” of fighting inflation.

The euro losses have already started after the announcement of the decision on Thursday, causing the Euro to loose ground especially against the US Dollar. The French Read more »

Asian stock markets opened higher today but the market participants are cautious before Federal Open Market Committee Statement tomorrow. NIKKEI started the day at 9,420.43, previous close was 9,354.32. HANG SENG opened at 21,770.59, previous close was 21,599.51. Greek debt problems and shortage of good news are limiting the gains. Besides slowing growth in U.S. economy is still pressuring the markets.

Asian trading session started the day with USD weakness. USD is weakening against its major counterparts. Safe heaven currencies CHF and JPY are performing better than EUR, AUD and GBP.

AUD was rising during early hours until Reserve Bank of Australia released Minutes of the Monetary Policy Meeting (June 7 Board Meeting). The minutes said “This outlook suggested that further tightening in monetary policy would be necessary at some point. Members considered, however, that the flow of data over the past month had not added any urgency to the need for an adjustment to policy. In Read more »

Asian stock markets opened higher today. NIKKEI started the day at 9,443.32, previous close was 9,411.28. HANG SENG opened at 21,800.50, previous close was 21,695.30. Hopes for Greece aid deal is helping Asian stock markets to recover their recent loses. Citigroup Inc. raised its rating on Japan’s auto sector to “neutral” from “bearish”. Japan Trade Balance data came in at -¥853.7 billion. According to the Ministry of Finance, Japan’s economy remains fragile after the natural disaster hit the nation. On the other hand, some crucial parts of the economy, such as industrial output, have recently started showing signs of improvement.

Asian trading session started with USD strength against CHF, GBP and AUD. JPY is almost flat against EUR and rising against AUD by the time of writing.

This week we still expect that Greek headlines are likely to dominate all markets. We also expect markets to remain volatile for the rest of the week. Besides, investors are Read more »

Asian stock markets opened higher today but bearish outlook remains. NIKKEI started the day at 9,443.32, previous close was 9,411.28. HANG SENG opened at 21,971.24, previous close was 21,953.11. Even though the analysts were thinking that 9,400 support will hold, the investors are cautious as global economic growth is slowing and Greece’s debt problems are getting worse. Analysts said concern about tax hike is also affecting the market. The Mainichi newspaper reported that the Democratic Party is considering to raise both corporate and income taxes by around 10% to repay new government bonds for funding the reconstructions needed.

Asian trading session was almost flat during early hours but later USD bulls started to show some strength again. AUD, GBP, EUR and CHF are falling against USD by the time of writing.

Of course the main reason behind USD strength is that the fears of a Greek default. Everybody is so concerned about Greece defaulting and the effect that Read more »