The dollar strengthened against the euro for the 3rd week in a row and rose against the majority of its major counterparts as concern grew over the ongoing Egyptian unrest and the debt crisis in Europe.
Investors sought the relative safety of the dollar as speculation increased over Portugal’s funding costs rising to an unsustainable level along with Egyptian President Hosni Mubarak stepping aside and handing power over to the military. Investors were further encouraged to seek out greenbacks with positive U.S.jobs data recently released along with a forecast increase in January retail sales.
February 13, 2011
February 10, 2011
Hopes raised, punches pulled
European leaders look set to fudge the latest test of their resolve.
EVER since the sovereign-debt crisis erupted a year ago bond markets have repeatedly tested the resolve of European leaders to avoid government defaults. On each occasion euro-zone members have done something—but not quite enough to quell the crisis. This year looks like following the same pattern.
EVER since the sovereign-debt crisis erupted a year ago bond markets have repeatedly tested the resolve of European leaders to avoid government defaults. On each occasion euro-zone members have done something—but not quite enough to quell the crisis. This year looks like following the same pattern.
February 09, 2011
Forex focus: sterling turns the corner
It’s up against the US dollar and the euro, as well as against last year's strongest currencies - the Swiss franc, Japanese yen and Aussie dollar.
This is great news for pensioners and those living off savings held in sterling. You could be getting the best rates for two years.
This is great news for pensioners and those living off savings held in sterling. You could be getting the best rates for two years.
February 08, 2011
BOI Chief Sees Debt Crisis in Spain, Italy as ‘Highly Unlikely’
The euro-region rescue fund should be empowered to bail out banks and buy bonds on the market even though it’s “highly unlikely” that the debt crisis will spread to either Spain or Italy, according to Bank of Italy Director General Fabrizio Saccomanni.
“It would be useful to increase the effective size of the EFSF, which is less than its nominal value, and especially to raise its operative potential,” according to a transcript of a speech Saccomanni delivered today in Berlin. These steps should be taken even in the improbable scenario that the debt crisis extends to bigger countries such as Spain and Italy, he said.
“It would be useful to increase the effective size of the EFSF, which is less than its nominal value, and especially to raise its operative potential,” according to a transcript of a speech Saccomanni delivered today in Berlin. These steps should be taken even in the improbable scenario that the debt crisis extends to bigger countries such as Spain and Italy, he said.
February 07, 2011
Base metals ends higher on Euro debt crisis
The base metals complex delivered a good performance on the LME last week. Prices were driven by favorable economic data from the US and the Euro Zone released in the last week.
But, prices also took cues from developments on the crisis in Egypt. This led to major concern in the global financial markets and sharp gains further were capped on the back of these worries. The US Dollar Index (DX) closed on a flat note in the last week.
But, prices also took cues from developments on the crisis in Egypt. This led to major concern in the global financial markets and sharp gains further were capped on the back of these worries. The US Dollar Index (DX) closed on a flat note in the last week.
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