Currency Cold War
February 15 2013 9:20 AM
It isn’t much of a secret that gold mining shares have suffered greatly in the past 18 months. In fact, since the summer of 2011 the Market Vectors Gold Miners ETF (GDX) has plummeted nearly 40%. That has caused many precious metal investors to give up hope on mining shares altogether; and to also now anticipate a tremendous plunge in gold prices.
Currency Cold War
February 14 2013 10:10 AM
It isn't much of a secret that gold mining shares have suffered greatly in the past 18 months. In fact, since the summer of 2011 the Market Vectors Gold Miners ETF (GDX) has plummeted nearly 40%. That has caused many precious metal investors to give up hope on mining shares altogether; and to also now anticipate a tremendous plunge in gold prices.
Eurozone GDP Falls More Than Expected in Q4, Markets Slide
February 14 2013 9:04 AM
Eurozone GDP in the fourth quarter contracted faster than expected and for the full year 2012, the Eurozone saw four quarters of contraction as nations launched austerity measures to help clean up finances. Stocks in Europe were lower and the euro slid on the news. Eurozone GDP contracted 0.6 percent in the fourth quarter, worse than the 0.1 percent rate of contraction seen in the third quarter and below forecasts of a 0.4 percent contraction. Weakness across the continent was seen in domestic GDP reports, and stock markets and the euro fell.
Euro falls as German, French economies disappoint
February 14 2013 5:08 AM
The euro dropped and European shares fell on Thursday as growth data from the region's two largest economies came in weaker than forecast, throwing a first quarter recovery for the bloc into doubt. The German economy, Europe's largest, contracted by 0.6 percent in the final quarter of 2012, marking its worst performance since the global financial crisis was raging in 2009.
Mervyn King Sends Sterling Lower; Inflation Risks Outweighed by Pro-Growth Policy
February 13 2013 10:57 AM
Outgoing Bank of England Governor Mervyn King sent the pound lower against major pairs Wednesday following the publication of the Bank of England's Quarterly Inflation Report. The report and the ensuing press conference reiterated the Bank's stance to maintain loose policy, even as inflation creeps higher, near the Bank's target.
Currencies volatile after mixed messages from G7
February 13 2013 9:39 AM
The dollar and the euro rose against the yen on Wednesday in volatile trade after a G7 statement on exchange rates, designed to calm talk of a currency war instead triggered fresh concerns. The G7 reaffirmed its commitment to market-determined exchange rates and said fiscal and monetary policies must not be directed at devaluing currencies - comments which at first were seen as supporting the recent weakness in the yen.
Threat of Currency War Puts Eurozone Leaders on Edge
February 13 2013 8:27 AM
The euro traded at 1.3472 on Wednesday morning after a confusing statement from the Group of Seven leading industrial nations caused the currency to fall versus the yen. According to Reuters, the G7 confirmed its commitment to protecting exchange rates which are driven by markets rather than fiscal and monetary policies on Tuesday.
Out With the Dragon, In With the Snake
February 12 2013 4:12 PM
During this Chinese New Year, more than a billion people will be welcoming in the Year of the Black Water Snake, celebrating with family and friends all week long. The previous Year of the Black Water Snake was in 1953, which was when China launched its first Five-Year Plan and the average annual income for a family in the U.S. was about $4,000.
Dollar, Euro, Pound, Yen, Yuan - Is A Currency War Ahead?
February 12 2013 2:54 PM
Beggar-thy-neighbor currency devaluations helped crash the global economy in the 1930s. Are we about to repeat?
Foreign Exchange - Eurozone's Economy Puts An End To Euro Rally
February 12 2013 9:09 AM
The euro's momentum continued to falter on Tuesday morning amid speculation that the eurozone isn't as strong as the currency's recent rally would suggest. The common currency traded at 1.3386 at 7:40 GMT on Tuesday as fundamental problems within the region rose to the surface and shook investor confidence.
Cyprus Bailout Weighs on Euro
February 11 2013 8:32 AM
The euro slipped over the weekend and recovered only slightly on Monday morning, trading at 1.3383 at 8:30 GMT. The currency was under heavy pressure after political uncertainty threatened to throw the recent recovery efforts off track in both Spain and Italy, two of the region's most fragile economies.
Peter Schiff - Messing with the Bull
February 08 2013 2:28 PM
With the announcement this week of its massive $5 billion lawsuit against ratings agency Standard & Poor's, the Federal Government took a bold step to squelch any remaining independence of thought or action in the financial services industry. Given the circumstances and timing of the suit, can there be any doubt that S&P is paying the price for the August 2011 removal of its AAA rating on U.S. Treasury debt? In retaliation for the unpardonable sin of questioning the U.S. Treasury's credit worthiness, the Obama Administration is sending a loud and clear message to Wall Street: mess with the bull and get the horns. Shockingly, the blatant selectivity of the prosecution, however, has failed to ignite a backlash. But as the move violates both the spirit of the Constitution and the letter of the law in so many ways, I can't help but look at it as a sea change in the nature of our governance. Call it Lincoln with a heavy dose of Putin.
Weekly Analysis - Aussie falls as sentiment remains low
February 08 2013 11:08 AM
Unexpected economic numbers caused wild swings in most of the major currencies during the week. Key statements also added to the volatility. The highlights of the week included a surprise punch by the UK that interest rate talks are in consideration, although interest rates remained unchanged for both the UK and Europe, and better than expected sentiment figures from Canada.
Euro slumps on ECB's Draghi; global shares lower
February 07 2013 11:47 AM
The euro fell broadly on Thursday after the European Central Bank's chief said policymakers will monitor the impact of a rising currency, while U.S. stocks slid after jobless claims and mixed retail sales data. The ECB left its main interest rate at 0.75 percent. In a post-meeting press conference, ECB President Mario Draghi said the exchange rate was not a policy target, but is important for growth and price stability.
Euro Steady Ahead of Draghi Conference
February 07 2013 10:21 AM
The euro traded steadily ahead of the European Central Bank's monthly meeting on Thursday. The common currency was at 1.3537 at 8:15 GMT on Thursday morning. The ECB policy meeting is expected to produce little change in the region, as most are expecting the bank to keep the 0.75 interest rates unchanged. Investors will be waiting for ECB President Mario Draghi's press conference following the meeting for clues about future policy changes and his assessment of the currency's strength.
Investing In a World of Make Believe
February 07 2013 10:07 AM
In recent years, a high degree of economic, financial, and political uncertainty has resulted in acute volatility in stocks, real estate, commodities and precious metals. I believe that another aggravating factor has been the increasing skepticism through which the investing public views government statistics and statements.
Hollande Calls For Further ECB Intervention
February 06 2013 9:16 AM
The euro traded steadily near $1.35 after its rally was quashed early on Tuesday after political scandals in some of the region's weaker economies unfolded. On Wednesday the currency held steady, trading at 1.3536. Political uncertainty in Spain and Italy shook investors' confidence and renewed old worries that the two struggling nations would derail the region's recovery efforts.
Euro zone economy shows signs of recovery
February 05 2013 10:41 AM
(Reuters) - The euro zone's battered economy is probably recovering but the gulf between its two biggest members is widening, according to a survey on Tuesday that showed business optimism in the bloc at an eight-month high. Markit's Eurozone Composite PMI, based on business activity across thousands of companies, and a good gauge of economic growth, rose in January to a 10-month high of 48.6 from 47.2 in December - an improvement on the preliminary reading of 48.2. While still below the 50 mark that divides growth and contraction, where it has been since February last year, it has risen for the third straight month.
How Ugly Did Europe Just Get?
February 05 2013 10:13 AM
Monday, global financial markets got beat down on what was effectively a repricing of sovereign and political risk in Europe. Bond yields rose, bank stocks fell, and broadly, risk assets traded weakly. Europe just looked pretty ugly Monday. Beginning in Italy, 10-year government bond yields crept to two-month highs Monday on fears that former Prime Minister Silvio Berlusconi may be gaining in the polls ahead of the upcoming elections.
Dow To 14,000 … And Beyond?
February 05 2013 10:02 AM
If you’ve been a hibernating bear lately, you’ve missed a ton of positive news, as U.S. construction spending rose, ISM manufacturing data beat expectations and the country added 157,000 jobs. In addition, the JP Morgan Global Purchasing Managers’ Index rose to 51.5, staying above the expansion level for a second month in a row. The strengthening data, as well as improving investor sentiment, helped the Dow hit 14,000 for the first time since 2007.