Absence Of A Currency Peg

(Reuters) - The euro inched up on Thursday on the back of improved global appetite for risk, but gains were likely to be checked by nerves over the level of participation by private creditors in a Greek debt swap crucial to its second international bailout. The euro and the dollar were both higher against the yen after Japan's current account swung to a record deficit for the first time in three years in January, driving some short-term players to sell the Japanese currency. In Europe, indications are major banks and pension funds are likely to take part in the Greek deal, easing concerns about a chaotic default. But some hedge funds and Greek pension funds are still holding out, injecting uncertainty before the deadline expires later in the day. Greece aims to persuade 90 percent of ...

(Reuters) - The euro rallied from a 16-month low against the dollar on Monday as market participants pared bearish bets on the single currency ahead of key European events this week although investors remained overwhelmingly negative due to sovereign debt concerns. With euro net short positions at a record according to recent data from the Commodity Futures Trading Commission, the currency was susceptible to short-covering. But gains were contained as German Chancellor Angela Merkel reignited fears of a Greek default. Merkel said it would not be possible to pay out the next aid tranche to Greece without rapid progress on its second rescue package, including the voluntary restructuring of Greek debt held by its private creditors. Merkel's comments added to an already cautious ...

(Reuters) - The euro rallied from a 16-month low against the dollar on Monday as participants pared bearish bets on the single currency ahead of key European events this week, although investors remained overwhelmingly negative due to sovereign debt concerns. With euro net short positions at a record according to recent data from the Commodity Futures Trading Commission, the currency was susceptible to short-covering. . But gains were contained as German Chancellor Angela Merkel reignited fears of a Greek default. Merkel said it would not be possible to pay out the next aid tranche to Greece without rapid progress on its second rescue package, including the voluntary restructuring of Greek debt held by its private creditors. Merkel's comments added to an already cautious climate ...

The Week Ahead Highlights Risk sentiment stumbles again Waiting for Jackson Hole Are 'safe-havens' due for a short-term pullback? SNB intervention risk is here to stay The ECB calms sovereign debt markets Key data and events to watch next week Risk sentiment stumbles again Risk assets (stocks, commodities, JPY- and CHF-crosses, and commodity currencies) stabilized further to start this past week, but suffered what seems likely to be the first in a series of periodic relapses, as market conviction remains extremely low. We remain cautiously optimistic that the sell-off in the first half of August marked the low point in the current risk retrenchment, but we are keenly aware that risks remain skewed to the downside. In support of the view that a medium-term bottom ...

The Swiss franc continued its drop against majors, after taking a breather yesterday, on expectations the SNB will adopt all measures to halt the franc's rally. Yesterday, the SNB said it would raise sight deposits to 200 billion francs from 120 billion francs, repurchase outstanding SNB bills and adopt foreign exchange swaps, and it revealed that may take further measures if needed. Today, there are talks that the bank is selling franc in forward markets, rather than spot markets, to reduce its appeal more. Swiss Finance Minister Eveline Widmer-Schlumpf said any decision regarding a target for pegging to the euro is up to the central bank, not ruling out the possibility of seeing one of the two aforesaid options. In the euro area, amid the absence of important fundamentals today, ...

(Reuters) - Spot yuan was nearly flat on the dollar after moving in a narrow range on Thursday, as the market awaited fresh leads for direction after the currency appreciated nearly 3 percent since its mid-June depegging. The People's Bank of China set a slightly stronger yuan mid-point in line with a minor pullback of the dollar .DXY in global markets but the fixing gave the market little guidance on the Chinese currency's near-term trend, traders said. "Investors were cautious not to push the yuan too sharply in either direction for now on the absence of fresh news," said a dealer at a major Chinese commercial bank in Shanghai. "Authorities may want to let the yuan pull back somewhat to cushion domestic pressure after its mini-revaluation since the depegging, but external political ...