Forex

March 12 2013 10:33 AM

When central bankers dedicate their existence to re-inflating asset bubbles, it shouldn't at all be a surprise to investors that they eventually achieve success. Ben Bernanke has aggressively attempted to prop up the real estate and equity markets since 2008. His efforts to increase the broader money supply and create inflation have finally supported home prices, sent the Dow Jones Industrial average to a record nominal high and propelled the bond bubble to dizzying heights.

March 11 2013 5:30 PM

This should be ‘New Economic Paradigm – sort of, inflation into stock markets’ but that seems too long. Pushing inflation into stock markets is nothing new really. When money starts devaluing, stocks rise. So we have the worst offenders by order (roughly)

March 11 2013 9:01 AM

The euro began the week at $1.30 on Monday morning following questionable comments about a possible Italian euro-exit made by a German politician on Thursday night. Rainer Bruderle from the German Free Democrats party made comments suggesting Italy could leave the euro on a talk show last week. His comments came in response to the inconclusive Italian election which showed the country's increasing opposition to the imposed austerity measures.

March 08 2013 9:18 AM

The euro gained strength following the European Central Bank meeting and reached $1.3119 overnight, its highest value since January. The common currency settled at $1.3093 at 8:43 GMT on Monday morning. The ECB decided to keep interest rates fixed at 0.75 percent and bank President Mario Draghi gave investors confidence with his optimistic statements at the press conference following the meeting.

March 07 2013 8:54 AM

The euro held near $1.30 on Thursday morning as the European Central Bank's monthly meeting got underway and speculation about the bank's actions kept investors cautious. The ECB is expected to keep its already record low interest rates fixed at 0.75 percent. However, analysts are predicting that eurozone inflation could continue to drop over the next few months, which would justify a rate cut in the future.

March 05 2013 9:11 AM

The euro continued to trade near $1.30 on Tuesday morning as speculation about the upcoming European Central Bank meeting led some to believe there could be an interest rate cut in the future. Italy's political stalemate continued to weigh heavily on the euro's value and create uncertainty throughout the bloc. The country hasn't made any real progress toward establishing any kind of government after the country's elections didn't produce a leader.

March 04 2013 10:38 AM

(Reuters) - The euro fell against the dollar on Monday as a stream of weak euro zone economic data in recent days fuelled speculation the European Central Bank could cut interest rates sooner than previously expected. Although a Reuters poll last week showed economists expected the ECB to keep rates on hold this Thursday, some strategists said euro weakness would persist on growing expectations bank chief Mario Draghi would hint at future cuts.

March 01 2013 3:29 PM

During his testimony before Congress this week, Federal Reserve Chairman Bernanke made it a priority to dampen the growing concern that the unprecedented growth of the Fed's balance sheet presents great risks to the economy. There has been a heightened sense even among normally complacent members of Congress that the Fed could spark a precipitous decline in the economy and the financial markets if and when it seeks to "withdraw liquidity" by selling even a minor portion of its bond portfolio (which is projected to swell to $4 trillion by year end). This is a valid concern that I have been discussing for years.

March 01 2013 8:48 AM

The euro held above $1.30 on Friday morning after uncertainty in Italy overshadowed positive data from the Spanish economy. Italy's election results this week gave investors reason to believe the country would hinder the EU's progress toward ending the three year financial crisis. Italians, who are sick of the current course of raising taxes and cutting spending, voted erratically for politicians who promised to do away with many of the austerity measures already in place.