Posts Tagged: European debt crisis

The European zone is confronted with more and more bad news each day. Some of the problems associated with the making progress of the sovereign debt crisis and the bailouts of countries such as Greece are related to Angela Merkel, the German Chancellor, who has seen divisions over the problem of the bailouts in the Eurozone in the coalition government. There are some German politicians who are disgusted at the thought of sustaining other European countries in their debt crisis. This comes as a consequence of the fact that Germany already provides huge quantities of money for the indebted nations and in order to sustain the Euro on the trading market. This is rather normal as the German economy is the most powerful and the most solvent one in the Eurozone. As a matter of fact, at the moment, Angela Merkel is faced with interior problems as there are parties which sustain the Euro and others which are Read more »

The European Crisis seems to have a negative effect even upon the Great Britain Pound, one of the most powerful currencies in the European Union, the one which has almost arrived to be considered as a safe-haven based on the problems all the other countries are facing. Despite this good evolution although the year, it seems now that even the situation of the Great Britain Pound is getting worse due to the fact that the European crisis has had an effect upon the local economy as well.

Based on these facts, the Great Britain Pound has now faced the fourth consecutive weekly decline against the US Dollar and the Japanese Yen. This fall has been caused by the release of the macroeconomic data which indicates the fact that the nation’s economy is not going so well. This poor fundamental data increased the speculations according to which the UK Central Bank is going to be required to embark Read more »

The European currency started to rally during the previous week despite the bad situation in the European Union. By doing this, the currency has set the stage for volatility and strength for the week to come as well. At the middle of the previous week, the Euro/US Dollar FX Options and Futures Sentiment has reached the most bearish extremes in a long time, which point out to the fact that the trend may be headed higher during the days to come.

The EUR/USD pair is going to be more volatile in the days to come due to the German ZEW economic sentiment data and to the highly-anticipated US Federal Reserve interest rate decision. Nonetheless, unexpected developments may take place at any time due to Greece and to the fact that the debt crisis can become worse at any moment, without previous notice. This means that the Euro fundamentals are pointing towards troubles and towards further declines of Read more »

The crisis in the European Union has had quite an effect upon the currencies in Canada, Russia and South Africa today. There are signs that the expected global economic recovery is not going so well, which have caused an unpredicted evolution of some other currencies in the world.

The Canadian Dollar decreased today due to the fact that cooper and oil prices have fallen due to the evolution of the economic crisis. This has caused the Canadian Dollar to trade just a few cents of parity with the US Dollar. The crude oil’s value decreased today, reaching the value of $88.54 per barrel in New York. This is the most important Canadian export, so it has quite an influence upon the value of the currency. On the other hand, the value of the cooper fell by 1.6 percent, reaching the price of $8.630 per metric ton. These are not the only raw materials which have decreased, as the 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 »

The trading market has been, once more, taken by surprise today, with lots of currencies evolving in a rather unexpected way. The global financial situation is affecting again the trading market, causing large changes from one day to another due to economic concerns.

When it comes to the Eurozone, we can notice that the Euro has once again lost territory in front of its major counterparts. This is due to the fact that the optimism which seemed to dominate the market in the last period of time, generated by the speculation according to which China will buy Italy’s debt has quickly waned away. This has left the Euro without support, causing it to fail after the moment when Italy auctioned its debt. Moreover, there is a new skepticism which takes over the trading market at the moment, which implies that not even China is going to be able to prevent the spreading of the debt crisis to 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 »

Even though the European debt crisis continues, especially as Greece is in a worse economic shape than ever, the trading sentiment started to change and investors started to focus again on high-yielding currencies. The situation in the European area continues to be tensed, but traders tend to focus now on the possibility of higher gains, taking thus higher risks. This means that safe currencies are no longer preferred and this has caused currencies such as the Euro or the Rand to grow at the end of the trading week. This growing tendency is manifested especially against the US Dollar based on the fact that the most recent reports related to the US economy show signs of weakness.

The Euro managed to gain some of the territory lost in front of the US Dollar during the previous week of trading. Investors have only managed to calm after the string of bad news related to the European currency at the Read more »

Even though the global situation is appropriate foe assuring the US Dollar a nice, valuable growth as traders are now looking for safe currencies due to the European crisis, the USD did not manage to make great advances based on the fact that the US economy shows signs of weakness.

The bad economic situation has caused the US Dollar to loose territory against most of its major counterparts. The situation is worse than expected and there are numerous signs according to which the US economy still has a lot of progress to do in order to become viable again. The previous week brought news related to the decrease of the amounts for personal spending and bad news related to the home sales. The US personal spending grew by 0.4 percent during the month of April. Even though specialists were expecting this growth to be maintained throughout the months to come, following the ascendant line established in March, that Read more »