Abe Pulls Pin on JGB Grenade
May 28 2013 8:49 AM
Japan has already suffered through a quarter century's worth of an economic malaise because they have refused to allow the free market to work its reconciliation magic. Their reliance on government borrowing and spending to rescue the economy has proven to be a miserable failure. Because of this fact, Japanese politicians have succeeded to increase the debt to GDP ratio to 237%, which should have already caused a collapse in Japanese Government Bonds (JGBs) and the Yen.
Anti-Euro Sentiment Gains Traction in Portugal
May 28 2013 8:39 AM
The euro threatened to drop below $1.29 on Tuesday morning as fresh worries about a eurozone break up weighed on the common currency. With difficult austerity plans and sky high unemployment figures, radical anti euro movements in several of the eurozone's southernmost countries have been gaining popularity.
Eurozone Crisis Hinges on Structural Reforms, Says Draghi and Weidmann
May 24 2013 8:33 AM
The euro improved modestly on Friday morning following better than expected data that showed the eurozone's service sector and factory output improved in May. However, gains were narrow as both figures, although improved from last month's readings, still indicated a contraction. Bloomberg reported that a composite index drawn from a survey of purchasing managers rose to 47.7 in May compared to 46.9 in April. Most economists were expecting 47.2, so the data came as a pleasant surprise for the region.
Alibaba Has Something For Companies Who Don't Like A Fluctuating Yuan
May 23 2013 2:11 PM
OneTouch, a subsidiary of Alibaba, is giving smaller companies a chance to hedge against the rising yuan.
Eurozone Leaders Try to Tackle Tax Evasion
May 23 2013 7:57 AM
The euro slipped to $1.2838 on Thursday morning following Federal Reserve Chairman Ben Bernanke's testimony to Congress and the release of the bank's latest policy meeting minutes. Bernanke told Congress that the Fed would consider easing back on its bond buying stimulus if the country's economic improvement continued. His comments boosted the dollar and sent the euro downward as a result.
Radical AfD Political Party Could Disrupt German Elections
May 22 2013 10:38 AM
The euro traded steadily at $1.2931 on Wednesday morning as investors kept their attention turned to the US, where Federal Reserve Chairman Ben Bernanke will address Congress and release the Federal Open Market Committee's policy meeting minutes. The greenback fell against the euro for three consecutive days as investors speculated that the Fed would start to taper off its aggressive bond buying stimulus efforts.
British Pound traded at 7-week lows aganst US-Dollar as U.K. retail sales slump
May 22 2013 10:32 AM
The British pound was trading close to seven-week lows against the dollar on Wednesday as data showing that U.K. retail sales slumped in April increased the likelihood of more easing by the Bank of England.
Yen down after Japan's worst April trade deficit
May 22 2013 9:29 AM
The yen edged down against the dollar and euro in Asia on Wednesday after Japan posted its worst ever April trade deficit, fuelling yen-negative sentiment.
Euro Set For Another Week of Disappointing Data
May 20 2013 8:59 AM
After last week's GDP data spelled disappointment for the eurozone, the common currency seems poised for another week of pressure as more economic indicators are set to be released in the coming days. The region's GDP data showed that France had joined the ranks of its southern peers and posted a contraction, while German data showed weak growth.
Eurozone Reports Increased Trade Surplus
May 17 2013 7:59 AM
The euro traded steadily at $1.28 on Friday morning after data on Thursday showed that the region's March trade surplus was at its highest level since 1999, when the eurozone was created. The Wall Street Journal reported that the eurozone's trade surplus increased during the first three months of 2013, which indicates that weak internal demand was responsible for the weak GDP figures reported on Wednesday. During the fourth quarter, the economy shrank by 0.2 percent, which translates to an annualized contraction of 0.9 percent.
Eurozone GDP Puts Euro Under Pressure
May 16 2013 7:40 AM
The euro remained under pressure on Thursday after weak GDP data was released Wednesday. The figures indicated that the European Central Bank's prediction of growth in the second half of 2013 is looking less and less likely. With poor data on the table, the ECB is likely to remind markets of their plan to cut deposit rates if need be.
ZEW Results Weigh on Euro
May 15 2013 8:16 AM
The euro tumbled on Wednesday morning on disappointing figures from Germany and pessimistic forecasts for the region's economic data, due on later in the day. The common currency neared a one month low as it fell below $1.29 and traded at $2.2894 on Wednesday morning.
EU Confidence Could Be the Financial Crisis' Worst Casualty
May 14 2013 8:44 AM
The euro faced pressure on Tuesday morning after a new survey showed fractures widening between member states as the region's financial crisis deepened. The common currency reached above $1.30 and traded at $1.3009 at 5:47 GMT on Monday. The Wall Street Journalreported that a poll by Pew Research Center showed that Europeans are losing faith in the European Union and distrust between member states is creating disillusionment throughout the region.
Bubbles Inflating Faster Than GDP
May 13 2013 10:06 AM
Global central banks have clearly demonstrated the ability to re-inflate stock and real estate bubbles. Global stock markets are roaring ahead of their economies and real estate prices are quickly rebounding from their recent collapse. However, rock-bottom interest rates and massive money printing have yet to show an aptitude for creating sustainable GDP growth.
Eurozone Recession Could Be the Longest in the Currency's History
May 13 2013 8:31 AM
The euro slipped below $1.30 over the weekend and began Monday morning trading at $1.2987 as markets prepared for a host of economic indicators to be released this week. Most notably, Eurostat will release the region's first quarter GDP data, due out at 11:00 on May 15th. The Luxembourg statistics office will also publish a detailed report that includes March trade figures and April inflation on Thursday.
German Industrial Output Data Lifts Euro
May 09 2013 8:25 AM
German industrial output data lent strength to the euro on Wednesday and lifted the currency to nearly a one week high. Overnight the common currency maintained some of those gains and traded at 1.3149 on Thursday morning. Investors took comfort in unexpectedly positive German industrial output data which showed a marked increase in March. The BBC reported that the nation's industrial output grew 1.2 percent from the previous month and surprised analysts, who were expecting to see a decline. The figures came after a rise in factory orders was announced on Tuesday. With two days of solid data, many are optimistic about the state of the German economy and its ability to recover from its recent stint of poor data. As the largest economy in the eurozone, Germany has been under quite a lot of pressure to maintain a stable economy amidst a widespread financial crisis.
New Banking Stress Tests Could Put Eurozone Closer to Unified Banking System
May 08 2013 8:36 AM
The eurozone took a step toward unifying its banking system on Tuesday as Jeroen Dijsselbloem, Dutch finance minister and President of the Eurogroup, discussed a new round of stress tests which would evaluate the current state of the region's banks before they are linked. The Wall Street Journal reported that Dijsselbloem said the type of in depth review the European Central Bank would conduct could produce worrying results for some banks. However, the region must have complete transparency and be ready to deal with any weaknesses as it moves forward to align regulations and unite banks under one common supervisor and create a resolution mechanism for ailing banks.
CFTC Commissioner Bart Chilton Considers Regulating Bitcoin
May 07 2013 12:13 PM
Bart Chilton, Commodity Futures Trading Commission Commissioner, appeared on CNBC's Squawk Box Tuesday to discuss having his eye on the digital currency Bitcoin.
Euro Slips on Draghi's Comments
May 07 2013 8:38 AM
The euro lost some ground on Tuesday morning after Mario Draghi reiterated the central bank's commitment to further easing on Monday. The common currency fell to $1.3052 overnight and steadied at $1.3088 in the early hours of Tuesday.
Finland's Alexander Stubb Expresses Commitment to the Euro
May 06 2013 8:32 AM
The euro traded steadily at $1.31 on Monday morning following last Thursday's European Central Bank interest rate cut. The bank met expectations and cut its already record low interest rate to 0.5 percent. The cut itself put pressure on the euro, but bank President Mario Draghi's press conference following the meeting was the main driver in weakening the currency.