Forex Trading | Currency Exchange | Currency Trading | Foreign Exchange Blog » central banks

Bailouts In Europe Weaken EUR

Sat, 04 Dec 2010 22:03:25 +0000

Last month countries protested the US Central Banks decision to pump $600B into the economy over the next 8 months. As a consequence the dollar dropped against all currencies unanimously. Complaints and pressure would have mounted but for the EMU debt crisis.

EUR/USD has dropped back to mid 1.32 region at the start of the European session. With decision on Portugal still under consideration, European stocks continued to be sluggish. The markets tend to feel a bailout will be necessary.

Ireland’s EUR 85B loan and Portuguese bailout has left visible holes in the European economy. While rest of Europe tries to manage problem, the bond markets responded; with the Spanish-German 10yr bond spread rising 28 basis points to a high of 295. The EUR is continuing on a strong bearish trend

Bailouts In Europe Weaken EUR post from Forex Trading Blog

Markets Rebound After Successful Portugal Bond Sale

Sat, 04 Dec 2010 21:58:58 +0000

Wall Street rose today as reignited faith in Europe through the Portugal bond sale and positive economic news in Asia and US came out. The Dow followed European and Asian markets and was up 200 pts at close. The question is – “Is this a temporary buy back from speculators who believe a rebound is likely or have investors found renewed faith”.

It could also be that the central banks are buying a lot of it themselves. With concerns over Ireland and now Portugal and Spain, any comment from Europe will help settle nerves.

The latest of positive news came from the US, the jobs data, in addition to better retail sales. Net-net the euro closed at $1.3105 from $1.2983 late Tuesday in NY session.

Markets Rebound After Successful Portugal Bond Sale post from Forex Trading Blog