- 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.
- Peter Schiff - The Pound Gets Pounded
February 19 2013 11:53 AM
As the global currency war intensifies, the majority of attention has been paid to the 17% fall of the Japanese yen against the U.S. dollar over the past few months. The implosion has given cover to the sad performance of another once mighty currency: the British pound sterling. But in many ways the travails of the pound is far more instructive to those pondering the fate of the U.S. currency.
- Yen rises as Japan plays down foreign bond buying
February 19 2013 10:32 AM
The yen rose on Tuesday after Japan's finance minister played down talk of foreign bond buying by the central bank, although the broad trend for a weaker currency was expected to remain intact. The euro remained weak after falling on Monday when European Central Bank President Mario Draghi said the central bank would have to assess the impact of the currency's appreciation, and on wariness before an election in Italy.
- Euro Has A Rough Road Ahead
February 18 2013 10:04 AM
The euro began the week on a low, trading at 1.3326 at 8:22 GMT on Monday morning. The common currency is still regarded cautiously after GDP data last week showed the region was still deep in recession at the end of 2012. After major eurozone economies like France and Germany contracted at a higher rate than expected in the fourth quarter, many were left wondering if the currency's recent strength was based on any fundamental economic factors.
- G20 Won't Single-Out Japan On Currency Issue
February 15 2013 10:27 AM
G20 officials will disregard key parts of a currency statement issued this week by the Group of Seven powers, according to a communique drafted for finance leaders meeting in Moscow, and will not single out Japan. A G20 delegate who has seen the draft - put together by deputy finance ministers for their bosses - said it would also make no direct mention of new debt-cutting targets, something Germany is pressing for but which the United States wanted struck out.
- G20 Unlikely to Break New Ground on Currency Policy
February 15 2013 9:43 AM
G20 Meeting Unlikely to Break New Ground on FX Intervention Policy. Euro May Recover if Weekly LTRO Repayment Exceeds Recent Trends. Yen Advanced in Asia as Stocks Fell, Muto Tipped for Top Spot at BOJ
- Eurozone's Gross Domestic Product Data Suggests The Crisis Is Far From Over
February 15 2013 9:26 AM
The euro continued to fall on Friday morning as worries about the region's economy deepened. The common currency traded at 1.3335 at 9:20 GMT on Friday after poor GDP data stoked fears that the eurozone recovery was not as strong as the currency's recent rally suggested. GDP figures for the fourth quarter of 2013 painted a dismal picture for the eurozone. Both France and Germany suffered contractions greater than original estimates. The data surprised analysts, and showed investors that southern European countries weren't the only economies suffering in the current climate.