• Gold, Inflation and Currency Wars

    Gold has been a major topic of talking heads and investment advisors in recent months especially as emerging market central bank purchases begin to dwarf developed nations' reserves. The major moves in gold have come off the back of stimulus measures and recently announced plans for easing. As previously discussed, gold is historically used as a mechanism to hedge against inflation and paper value debasement. This time is no different as the recently announced Chinese stimulus, ECB bazooka, a...
  • Euro Dragged By Spanish Woes, Sterling At Risk Amid Slowing Inflation

    The Euro slipped to 1.3082 as a report by the Bank of Spain showed households and businesses withdrew EUR 26B in deposits during July, and the ongoing turmoil in the banking system may continue to drag on the exchange rate it raises the threat for a bailout.
  • Euro Propped Up By EU Chatter, Greece Continues To Seek More Time

    The Euro rallied to a fresh monthly high of 1.3120 as finance ministers across the monetary union talked down speculation for a Spanish bailout, while European Central Bank President Mario Draghi saw a case 'to be optimistic' as the new bond-purchasing program offers a 'fully effective backstop mechanism that is meant to remove the tail risk for the euro area.'
  • USD Outlook Hinges On Fed Policy, Euro Relief Rally Losing Steam

    The greenback is struggling to hold its ground on Thursday, with the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDOLLAR) paring the overnight advance to 9,840, and the reserve currency may weaken further during the North American trade as the FOMC is widely expected to ease monetary policy further in September.
  • Euro To Consolidate Ahead Of ESM Vote, Germany Endorses ECB Plan

    The Euro rallied to an overnight high of 1.2817 as Germany's Constitutional Court reassured that it will rule on the European Stability Mechanism on September 12, while Finance Minister Wolfgang Schaeuble warned of the slowing recovery in Europe's largest economy as the debt crisis continued to dampen the outlook for the region. In turn, Germany's Economy Ministry endorsed the European Central Bank's bond-buying program as the non-standard measure is expected to boost short-term liqu...
  • Euro Struggles As Greece Fails To Secure Bailout, ECB Under Pressure

    The Euro slipped to 1.2768 as Greece's Pasok party warned that the Troika - the European Union, European Central Bank, and the International Monetary fund - rejected more than EUR 2.0B of the proposed EUR 11.5B austerity program, while Italian Prime Minister Mario Monti argued against the conditionality proposed by the ECB's new bond-purchasing program as the budget-cutting measures continue to dampen growth. At the same time, a German official filed a complaint against the ECB's non-st...
  • Euro Breaks Out On Growing ECB Support, Pound Poised For Correction

    The Euro rallied to a fresh monthly high of 1.2716 as policy makers across Europe showed increased support for the European Central Bank's unlimited bond-purchasing program, and we may see the EURUSD continue to gain ground in the week ahead as it breaks out of the range-bound price action carried over from the previous month. Indeed, German Finance Minister Wolfgang Schaeuble argued that the non-standard measure is 'not the beginning of monetary financing of sovereign debt' as the cent...
  • Asia Markets: Gold, Silver and Crude Oil Trading

    US Gold futures finished pit trade with gains Thursday tapping a 6 month high early in the session. The monthly meeting of the European Central Bank did produce the widely expected, fresh EU monetary stimulus plan, in which the ECB will buy EU countries' bonds. Gold and silver prices were trading solidly higher early Thursday, in anticipation of the official ECB press conference announcing the initiative.
  • Oil prices firm ahead of Draghi comments

    Today will be mostly abut the outcome of the ECB policy meeting and Draghi's comments about the bond buying program as well as how large the draws will be in US oil inventories. The API repot last night showed a smaller than expected draw in refined products and a larger than expected draw in crude oil versus the consensus expectations. In overnight trading the market is already pricing in something bullish from the ECB meeting as global equities are higher across the board while most commodi...
  • London Session: Leaks and rumours drive EURUSD above 1.26

    There are two things that should be preoccupying the market's mind this afternoon: 1, how to navigate the global economic slowdown (data out of Europe today was truly horrible) and 2, how to prepare and position oneself for the ECB meeting tomorrow. We may have been given some help for the latter after the proposed ECB bond buying programme was leaked and hit the wires a short time ago. The leak, since denied by the central bank, suggested that ECB President Draghi would unveil an unlimited, ...
  • Research Note: The ECB to the rescue?

    This Thursday 6th September 2012 the ECB announces its interest rate decision at 1245 BST/ 0745 ET. The market consensus (as measured by Bloomberg) is for a 25 basis point cut to 0.50% from 0.75%. The main event will be ECB President Mario Draghi's press conference at 1330 BST/ 0830 ET.
  • Euro Hope Fizzles As ECB Sees Growing Rift, Moody’s Cuts Outlook

    The Euro gave back the overnight advance to 1.2626 as Moody's Investor Services cut the EU's Aaa credit-rating to 'negative' from 'stable,' while German Finance Minister Wolfgang Schaeuble argued that Greece must fulfill 'its obligations completely' as the region looks for an extension to meet its budget target. Meanwhile, European Central Bank President Mario Draghi warned of the ongoing rift within the EU as the bond purchase program comes under increased scrutiny, but ...
  • Nick Clegg

    Tax The Rich More? Great Britain Now Weighing An American Question

    As Great Britain struggles to escape its years-long recession, should the wealthy pay more taxes? The Deputy Prime Minister has spoken up to put the controversial issue on the table.
  • USD Outlook Hinges On Bernanke, Euro To Falter Should ECB Disappoint

    The greenback is struggling to hold its ground on Friday, with the Dow Jones-FXCM U.S. Dollar Index (Ticker: USDOLLAR) slipping to a low of 9,989, but the reserve currency may regain its footing going into the holiday weekend should Fed Chairman Ben Bernanke talk down speculation for another round of quantitative easing. As the Jackson Hole Economic Symposium takes center stage, the fresh batch of central bank rhetoric should set the tone for September, and we may see Mr. Bernanke sound more upb...
  • Euro Holds Major Trend Amid Weakening Outlook, Sterling Outperforms

    The Euro fell back from an overnight high of 1.2562 as the rise in German unemployment paired with the drop in confidence heightened the threat for a prolonged recession, while Moody's Investor Services said it's watching Spain 'very closely' as the region remains at risk for further credit-rating downgrades. At the same time, Greece is certainly running out of time to nail out the details of its EUR 11.5B austerity packaged as the troika - the European Union, European Central Bank, ...
  • Euro Struggles As ECB Presents Systemic Risk, Sterling Bucks Trend

    The Euro slipped to an overnight low of 1.2531 as policy makers in Germany warned that the European Central Bank may become a systemic risk to the financial system, and the ECB may come under increased scrutiny as it looks to expand its balance sheet further. In response, Italian Prime Minister Mario Monti argued that blocking the ECB's asset purchase program may 'backfire' amid the heightening threat for contagion, while central bank President Mario Draghi pledged to 'act within the...
  • Euro Remains Capped As Optimism Fizzles, ECB Independence At Risk

    The Euro advanced to a high of 1.2559 as the European Central Bank announced all Executive Board members, including President Mario Draghi, will not attend the Jackson Hole Economic Symposium scheduled for later this week, while there's talk that the central bank is looking to reduce the cost of borrowing against asset-backed securities in an effort to boost private sector lending. However, former ECB board member Juergen Stark warned that restoring the bond-purchase program 'will further ...
  • Euro Rally Slows Amid Growing Uncertainties, Spain To Tap EUR 60B

    The Euro is holding within Friday's range as Bundesbank President Jens Weidmann continued to speak out against the bond purchase program and warned that 'central bank financing can be as addictive as a drug,' while Spain is expected to tap EUR 60B of the bank bailout program in an effort to shore up the ailing economy. However, as Spain's increase in the value-added-tax comes into effect in September, the ongoing push for austerity certainly raises the threat for a prolonged recessio...
  • Euro Falters As Greece Fails To Secure Extension, ECB To Wait On ESM

    The Euro slipped to 1.2497 as German Chancellor Angela Merkel said she will need to see the Troika report on Greece as the region seeks a two-year extension to meet its budget target, while the European Central Bank reiterated that it will wait for Germany's high court to rule on the European Stability Mechanism before finalizing its bond purchase program. As Greece struggles to get its house in order, the threat of a euro-area exit may generate further declines in the exchange rate, and the ...
  • Euro Marches Higher On Growing ECB Bets, Sterling Correction Underway

    The Euro advanced to a fresh monthly high of 1.2571 amid reports that the European Central Bank is looking to implement a secret yield ceiling on Spanish and Italian debt, but we may see the Governing Council struggle to meet on common ground as the bond purchase program comes under increased scrutiny. Meanwhile, German Finance Minister Wolfgang Schaeuble argued that giving Greece additional time to meet its budget target is not the solution as it translates into providing additional assistance,...

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