- Is Cyprus Pushing The EU Down a Slippery Slope?
April 08 2013 10:28 AM
Cyprus was the fifth nation to formally seek emergency financial assistance from the Troika, a coalition of European Union finance ministers, the European Central Bank, and the International Monetary Fund responsible for ensuring euro zone economic stability. When the call for help went out a few weeks ago, Cyprus was juggling a banking system with assets equal to 750 percent of its 2012 GDP, which was about $24 billion. Meanwhile, the Troika was juggling complicated and politically tense multibillion-euro bailouts in four major economies.
- Portugal Next to Resist Eurozone Austerity Measures
April 08 2013 8:27 AM
The euro traded steadily at $1.30 on Monday morning after gaining 1.3 percent against the dollar after a disappointing jobs report from the US last week. This week US Treasury Secretary Jacob J. Lew will meet with European lawmakers to discuss strategies to promote economic growth and resolve the eurozone's debt crisis.
- Draghi Hints at Future Rate Cut
April 05 2013 8:56 AM
The euro rebounded on Friday morning after the European Central Bank's policy meeting concluded without any major changes to the region's policies. The common currency traded at 1.2919 at 7:00 GMT on Friday as investors regained confidence in the region.
- Investors Await Draghi's Plan to Save the Eurozone
April 04 2013 8:31 AM
The euro traded steadily near $1.28 on Thursday morning ahead of the European Central Bank's monthly policy meeting. The commodity traded at 1.2799 at 10:35 GMT as investors speculated about the bank's plans for the rest of 2013. The meeting is coming on the heels of dismal unemployment and manufacturing data that highlighted the bloc's worsening financial and social situation. Despite this, most analysts are expecting the eurozone finance ministers to leave the eurozone's record low 0.75 interest rate unchanged.
- Bank of Japan Puts the Pedal to the Metal With New Easing
April 04 2013 8:27 AM
A decade after Federal Reserve Chairman Ben Bernanke travelled to Japan and preached the benefits of reflationary policy to the Bank of Japan, it finally seems as though leaders at the Bank of Japan are heeding his call. With the latest moves overnight, the Bank of Japan, led by Governor Haruhiko Kuroda, has announced staunch new easing policies aimed at reflating the economy.
- Eurozone Unemployment Unchanged at Record High
April 03 2013 9:04 AM
The euro fell toward $1.27 on Wednesday morning after poor data showing no signs of recovery worried investors and confirmed that the region was likely to remain in a recession for a long time. The common currency traded at 1.2807 at 8:25 GMT.
- Cyprus Eases Capital Controls, Seeks Better Bailout Terms
April 02 2013 12:47 PM
Cyprus partially curbed capital controls on Tuesday, marginally freeing up the movement of money within the country. Capital flows were restricted on March 28, following a two-week bank closure that was the result of bailout negotiations involving the nation’s top two banks.
- What Maslow and Rand Would Tell Investors Today
April 02 2013 11:14 AM
I have always been fascinated by what motivates people. What motivates Tiger Woods to pursue the goal of being the world’s greatest golfer? What’s the motivation driving Warren Buffett to continue purchasing companies instead of retiring in Tahiti? Or how about the motivation behind the trucks allegedly packed with euros parked in front of the Central Bank in Nicosia?
- Peter Schiff - CYPRIOTS IN THE STREETS
April 02 2013 8:59 AM
The news of the month comes from the large Mediterranean island of Cyprus, where Keynesian economic planning left the economy facing complete bankruptcy. The result was an unprecedented step forward in the financial collapse of the West: direct forfeiture of bank deposits.
- Tensions Run High in the Eurozone
April 02 2013 8:07 AM
The euro traded steadily near $1.28 on Tuesday morning after a difficult first quarter wracked with financial and political problems. At the moment, the biggest weight on the common currency's shoulders is Cyprus' bailout agreement, which ruffled investors' feathers with its unconventional fund raising scheme. In the agreement, Bank of Cyprus account holders will be forced to bear the brunt of the country's debt and are expected to lose around 60 percent of their savings.
- The Real Fallout from Cyprus
April 01 2013 10:38 AM
Holders of the Euro currency should be glad that the Troika is finally doing something besides just making more loans, printing more money and monetizing more debt—unlike what the Treasury and Federal Reserve is in the habit of doing. For me, this has to be positive for the Euro in the long term because the ECB is not expanding its balance sheet, while the Fed is rapidly expanding the U.S. monetary base.
- Euro at $1.27 Ahead of ECB Meeting
April 01 2013 8:25 AM
The euro traded at $1.27 on Monday morning as the eurozone began the week sure to be plagued with political and financial turmoil. The common currency treaded on thin ice ahead of the European Central Bank meeting, set for Thursday.
- Can Hyperinflation Be a Real Threat to the U.S.?
March 29 2013 10:36 AM
While inflation seems to be on everyone’s mind these days, misconceptions abound. Indeed, few concepts in economics are as misunderstood as inflation. This month I take a look at some common questions about inflation, and a few that I wish more people were asking. “Until we return to a stable, rule-bound international monetary system, inflation will continue to be source of anxiety in economies and asset markets around the world.”
- Does Limited GDP Growth Indicate Better Things to Come?
March 28 2013 10:35 AM
While Europe finds itself still shrouded in the dark veil of the debt crisis, the U.S. is looking at decidedly brighter skies, as the economy continues its positive trajectory. While growth remained slow in the final months of 2012, stronger business spending helped advance the nation’s gross domestic product at a 0.4 percent annual rate between October and December, the Department of Commerce reported on Thursday.
- Euro Down as Cypriot Banks Reopen
March 28 2013 7:52 AM
The euro fell on Thursday morning as Cypriot banks prepared to open after being closed for an extended bank holiday while lawmakers sorted out the country's bailout agreement. The common currency was trading at 1.2791 at 10:43 GMT, almost an hour after Cypriot banks opened. Cypriot lawmakers have put in place a set of strict controls to keep account holders from flooding banks and emptying their accounts. Though the controls are designed to prevent capital flight from the tiny island nation, many worry that there could still be a run on Cyprus' banks.
- Euro Bears See Euro Dropping to $1.20 This Year
March 27 2013 9:05 AM
The euro traded steadily above $1.28 as investors continued to fret about Cyprus' bailout plan and its impact on the rest of the currency bloc. Dutch Finance Minister and President of the Eurogroup' comments that the plan to use individual deposits to raise bailout funds could become a template for future bank rescues shook financial markets and stirred up fresh tension between struggling southern European countries and their northern counterparts.
- Spot EUR/USD Forecast for 03/27 by Daytradeideas.com
March 27 2013 8:55 AM
EURUSD held 1.2890/80 & Monday’s low at 1.2830 in the downtrend so the same levels apply for today. We run in to resistance today at 1.2890/80 but if we push through 1.2902 look for 1.2945. We can look for a top here & try selling short with a stop above 1.2970. Next resistance is at 1.3015/20 for trying shorts again. Support at 1.2845/30 but below here we could sink further to 1.2795 & then 1.2745/35. If prices were to continue lower we should test 1.2690/80 support.
- What Can Warren Buffett Teach Us About Cyprus?
March 26 2013 3:26 PM
Warren Buffett has offered a lot of timeless wisdom to investors over the years. Considering the recent turmoil in Cyprus, now is a good time to review a fellow named Mr. Market. The Oracle of Omaha and chief executive officer of Berkshire Hathaway (NYSE:BRKA) (NYSE:BRKB) makes regular appearances on television, but his annual letters to shareholders still provide the biggest bang for your buck. In the 1987 letter, Buffett introduces readers to Mr. Market, a character that came into Buffett’s life from his teacher and the father of value investing, Benjamin Graham. Mr. Market is the mental attitude towards market fluctuations. He is reliable in the sense that he appears daily to provide market quotations. However, his mood is anything but reliable.
- Euro Drops As Relief From Cyprus Deal Turns To Fear
March 26 2013 7:53 AM
The euro retreated on Monday evening after rumors circulated that Cyprus' bailout deal could set a precedent for future eurozone aid packages. The common currency dropped to 1.2876 on Tuesday morning at 7:00 GMT.
- Bernanke Defends Expansionary Monetary Policy
March 25 2013 4:31 PM
“The topic of this session is lessons learned from the financial crisis,” said Chairman of the Federal Reserve Ben Bernanke at the beginning of a speech he delivered on Monday at the London School of Economics. “For me, perhaps the central insight is that the recent crisis, despite its many exotic features, was in fact a classic financial panic–a systemwide run of ‘hot money’ away from assets whose values suddenly became uncertain.”