- Euro falls as ECB rate cut speculation grows
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.
- Euro Below $1.30 Ahead of ECB Meeting
March 04 2013 10:02 AM
The euro waned on Monday as the possibility of another Italian vote and a European Central Bank interest rate cut both became more likely. The common currency traded at 1.2996 at 11:04 GMT on Monday morning.
- Peter Schiff - Ben's Balance Sheet Blues
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.
- Is Bernanke Really the Best Fed Chairman?
March 01 2013 1:14 PM
In his recent testimony to Congress, Ben Bernanke unsurprisingly defended the Federal Reserve’s loose monetary policies. The Chairman even pushed back when he was called a dove by citing the consumer price index. However, looking at the bigger inflation picture, the central bank’s track record is anything but stellar.
- Coalition Between Bersani and Berlusconi Seen as Likely
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.
- Peter Schiff - THE FED'S TIGHTENING PIPE DREAM
March 01 2013 8:41 AM
Ben Bernanke claimed before Congress that he doesn't need to sell any assets to unwind the Fed's massive portfolio - he can just let it mature. Precious metals markets are interpreting the Fed's posture as increasingly hawkish. Peter Schiff shows why the Fed not only won't tighten, but why it can't.
- Euro Ticks Up After Successful Italian Bond Sale
February 28 2013 10:34 AM
The euro ticked up on Thursday and traded at 1.3146 at 6:48 GMT after a successful debt auction in Italy which calmed fears that recent political turmoil wouldn't affect the country's debt restructuring. The modest gains came following Italy's sale of 5 and 10 year bonds, for which there was a healthy demand.
- Where to go as Swiss are Shutting out U.S. Taxpayers
February 28 2013 10:16 AM
For some years now, Swiss Banks have not been willing to take on U.S. clients because of the aggressive tactics of the U.S. IRS. Since they hauled UBS over the coals for harboring U.S. tax evaders and continue to investigate many Swiss Banks, the IRS has posed a threat to Swiss companies operating in the United States.
- Singapore A Wise Owl Among Currency Snakes
February 27 2013 2:57 PM
As China enters the "Year of the Snake," Singapore stands as a beacon of sound currency in a world gone mad. China's renminbi remains pegged to the US dollar, while even steadfast Switzerland has followed the US, UK, EU, and Japan into an impoverishing strategy of currency debasement. Singapore, alone, has been able to sustain genuine economic growth in the context of a strong national currency.
- No Easy Escape for the Fed
February 27 2013 9:32 AM
I’ve said since the beginning of 2009 that any future “recovery” experienced by the markets and the economy would be derived through massive government spending and Federal Reserve debt monetization. Therefore, the logical conclusion must be that when or if fiscal and monetary austerity is eventually adopted, the economy and markets would crash.
- Euro Remains near $1.30 as Italian Election Dust Settles
February 27 2013 9:21 AM
The euro rebounded only slightly on Wednesday and traded at 1.3076 at 9:53 GMT on Monday morning. The increase can be attributed to Federal Reserve Chairman Ben Bernanke's reassurance that the US central bank was on track with its stimulus plan which eased market worries on Tuesday. Italy remains the main focus in the eurozone after an inconclusive election left investors feeling uncertain about the fate of the entire region. The vote, in which Italians opted for anti-austerity promises, sent a message that Italians are fed up with the German-led crisis management and ignited worries that this rejection of the current path to recovery could spread to other struggling nations.
- This is How Ben Bernanke Defended The Fed’s Monetary Policy
February 26 2013 4:13 PM
Criticism has mounted against the Federal Reserve’s easy-money policy; even within the central bank itself there are detractors who believe that its method of lowering interest rates in order to increase the available money supply could destabilize the financial system. But Chairman Ben Bernanke is more concerned about the across-the-board sequestration cuts set to take effect Friday, stating before Congress on Tuesday that the $85 billion in cuts to the federal budget combined with the earlier tax increases could pose a “significant headwind” for the economic recovery.
- No Easy Escape for the Fed
February 26 2013 9:52 AM
I've said since the beginning of 2009 that any future "recovery" experienced by the markets and the economy would be derived through massive government spending and Federal Reserve debt monetization. Therefore, the logical conclusion must be that when or if fiscal and monetary austerity is eventually adopted, the economy and markets would crash.
- Interest In China’s (Offshore) Yuan Has Exploded
February 25 2013 4:14 PM
As China seeks to coax foreign investors into using its currency, interest in yuan accounts has been strong in Hong Kong.
- France's economic rut deepens, but borrowing is no problem
February 25 2013 9:36 AM
Economic data flagged a growing risk of recession in the euro zone's second biggest economy, France, on Thursday, but investors nonetheless snapped up the country's bonds, banking on them as a safe bet. Hot on the heels of Paris's admission that it would overshoot its deficit target this year and that growth would be a minimal 0.3 percent at best, a survey showed that business activity this month contracted at the fastest pace in nearly four years.
- Struggling Eurozone Countries Expected to Miss Deficit Targets
February 22 2013 9:12 AM
The euro was poised to finish off the week trading steadily above $1.32 on Friday as investors geared up for next week's Italian elections. The common currency traded at 1.3234 at 9:20 GMT on Friday morning.
- What Happens When Pennies and Nickels Become Too Expensive?
February 21 2013 12:11 PM
In a classic example of stepping over dollars to pick up pennies, chatter is getting louder that the United States could follow Canada’s lead and reduce its production of certain coins. Earlier this month, the Royal Canadian Mint officially ended its distribution of pennies to banks and retailers, in an effort to save money since production costs now exceed their face value. The government estimates that it cost about $11 million a year to supply pennies to the Canadian economy. Now, the big spenders in Washington D.C. may look under the couch cushion for similar savings.
- Euro Retreats on Weak Economic Data
February 21 2013 10:59 AM
The euro traded at 1.3198 at 9:51 GMT on Thursday morning after sliding on lower than expected economic data. The currency has retreated back to its pre-rally value, where many investors think it belongs. The eurozone's manufacturing and services industry fell lower than expected in a report from Markit Economics on Thursday. According to Bloomberg, economists forecast an index of 49 but the figure came in much lower at 47.3.
- Why Interest Rates are rising
February 20 2013 12:11 PM
The interest rate on the Ten-year Note has risen from 1.58% on December 6th of last year, to as high as 2.03% by mid-February. Most equity market cheerleaders are crediting a rebounding economy for the recent move up in rates. According to my count, this is the 15th time since the Great Recession began that the economy was supposedly on the threshold of a robust recovery.
- Euro Strengthens On ECB Remarks
February 20 2013 9:27 AM
The euro climbed on Wednesday morning following positive statements from a European Central Bank official. The commodity traded at 1.3424 at 7:47 GMT on Wednesday. ECB Executive Board member Joerg Asmussen told reporters that he was predicting gradual improvement within the eurozone during the first quarter of 2013. According to Reuters, Asmussen said the board is focused on fiscal consolidation, structural reforms and banks' balance sheet repair.