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Reported US Trade Deficit Widens

admin — Fri, 10 Feb 2012 19:29:33 +0000

The US trade deficit for December 2011 (reported by the US Commerce Department) widened by almost 50 billion USD, the most month over month increase since last June. The recent relative weakness of the dollar, coupled with the improving US economy, increased the demand for imports.
More than half of the 2011 deficit came from trade with China. This report comes right before a US visit by Chinese heir apparent Xi Jinping. This data could increase US industry opposition to trade [...]

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Week in FX Europe Feb 5-10

admin — Fri, 10 Feb 2012 18:45:14 +0000

Despite the EUR’s sell off in the final trading session of the week, the single currency has managed to regain some lost ground against most of the G10 and EM currencies. Analysts agree that the “policy process and the firewall thats been built around Greece” have been contributing to the “excessive degree of benefit of doubt” which in turn has helped promote this move.
However, other factors in the background have also been aiding this trade. The dovish Fed message [...]

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Loonie Loosens the Death Grip

admin — Fri, 10 Feb 2012 18:45:02 +0000

The loonie has finally broken out of that death grip range that we were beginning to become accustomed to midweek. At the time it seemed that everyone was afraid to do anything. However, once the risk adverse trading strategies again became in vogue, especially after the Euro finance minister agreed to hold back Greek aid, the dollar got its second wind and headed strongly north of parity. The risk reward play had short term players selling the CAD below parity. [...]

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Can the BoJ breath a little easier?

admin — Fri, 10 Feb 2012 18:44:44 +0000

The BoJ is expected to keep its policy rate near zero and leave its asset buying program at Y55t at its two day meeting starting on Monday. Consensus has us believing that economic conditions from policy makers perspective has not changed. Unless something out of the ordinary happens this weekend in Europe, then we should be expecting the board members to maintain the existing framework.
As it seems to be the new norm for Central bankers, both the Euro and [...]

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Greek doubts and Portuguese concerns support Swiss Franc

admin — Fri, 10 Feb 2012 13:02:14 +0000

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Eurozone Holds Back a Rescue Package for Greece

admin — Fri, 10 Feb 2012 10:37:08 +0000

Eurozone finance ministers dismissed as incomplete a €3.3bn package of Greek budget cuts necessary to secure a €130bn bailout for Greece.
Greek finance minister was given a new set of demands and an urgent deadline, February 15th. The lenders are demanding from Greece €325m in further cuts to this year’s budget, parliamentary approval of a comprehensive reform package and a pledge from the country’s political leaders to maintain their commitment after April elections. They also demand to…

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EUR to lose Faith?

admin — Fri, 10 Feb 2012 10:35:25 +0000

Buy the rumor sell the fact, there was none of that. There was no euphoria when the austerity deal was finally struck on the Greek side. Global equities did happen to receive a small bid, fixed income yield remained rather flat, but that was it, no ticker tape parade. One certainly gets the feeling that no one believes in it, and that is the reason why the European finance ministers have dismissed the +EUR3.3b Greek budget cuts as incomplete. They [...]

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Euro Gains on Greek Deal

admin — Thu, 09 Feb 2012 18:57:35 +0000

By Sam Mattera
Benzinga Guest Writer
Finally! The Greek situation has been put to bed! Or has it?
On Thursday morning, Greek leaders announced that they had finally reached a deal with their private creditors to avoid an outright default. The EUR/USD currency pair instantly rallied on the news, spiking over 0.30% to break strongly above the $1.32 price level.
US equity markets moved into positive territory, trading at modest gains early in the session on Thursday. Equity futures had been…

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ECB, Bank of England Leave Rates Unchanged

admin — Thu, 09 Feb 2012 13:20:16 +0000

Both the Bank of England and the European Central Bank (ECB) opted to leave their respective benchmark lending rates unchanged. The ECB rate will remain at 1.0 percent, while the Bank of England rate was held steady at 0.5 percent.
The rate announcements came just hours before the news was made public that the Greek coalition government had reached a deal on spending cuts paving the way for a second emergency bailout for Greece. The rescue package is valued at 130 [...]

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UK Industrial Output Increases Above Forecast

admin — Thu, 09 Feb 2012 10:45:22 +0000

U.K. manufacturing increased in December by five times more than economists forecasted, and the total trade deficit shrank to the smallest since 2003, pointing to signs of economic strength at the end of last year.
According to the Office for National Statistics, factory output increased 1 percent from the previous month, and out of 13 categories of U.K. manufacturing, four fell on the month and nine rose. Transport equipment rose 3 percent and the manufacture of food, beverages and tobacco…

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