Posts Tagged: G-20 summit

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 »

As traders become more and more anxious about the outcome of the Group of Twenty summit, the market continues to be dominated by risk aversion, which causes safe-haven currencies to grow against riskier assets. Based on this fact, the GBP/USD pair fell today. This decrease has not been caused only by the situation in Europe, but also by the poor state of the British economy. The European leaders have hold a summit in which they have discussed the European sovereign debt crisis and the measures that should be taken in order to prevent the situation in Greece from spreading towards other European countries. Although none of the results of this summit have been made public yet, there are rumors according to which a forced involvement in Greece and in other indebted European nations is not exactly out of the question. There are also rumors according to which politicians have different opinions about the measures that have to be Read more »

The end of the Group of Twenty summit has had a powerful impact upon the trading sentiment, causing the evolution of some currencies to change. This G-20 summit was supposed to find solutions for the sovereign debt crisis in the Eurozone and for the banks in the region. Up to now, the only result we know concerning this summit is that the members of the 20 European countries have refused the idea of a forceful restructuring of the Greek debt. It seems that the plans made by politicians did not manage to persuade investors of this thought. Moreover, the market has been affected by the decrease of the European manufacturing and services industries.

The result of this still blur outcome is that of influencing the trading sentiment, causing the risk appetite to grow once more. This has had a negative impact upon the US Dollar, which started to fall against its major counterparts as the safety need 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 »

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 »