Be Getting More Complicated

The European Commission supported volatility to extend in the market amid the current deteriorating sentiment in the market, where the Commission revised growth forecast lower for the euro-area region adding concerns the current austerity-linked solution is weighing sharply on growth, forcing more pressures on lawmakers to find another way around to hammer that debt crisis as well as boosting growth, but without adopting further austerity. The critical economic situation in Europe is worsening and getting more complicated, where lawmakers cannot find a way to fight the debt crisis without affecting growth aspects, where the sharp austerity adopted across Europe has brought a technical recession confirmed in most of the nations in the euro zone, fueling the debt crisis to expand further ...

This is the key question for currency traders right now. The fundamental back-drop looks challenging for the euro. Although the Merkel/ Hollande rift seems overdone to us, Greece is the real problem. The leader of the New Democracy party announced late last night that he had failed to form a coalition government. The baton is now passed to the leader of the radical left wing Syrizia party, which now has three days to form a government. If this fails then another round of elections is on the cards for June. However, these elections could coincide with Greece running out of money, which makes them a much riskier prospect than the elections held last weekend. Election deadlock However, why has the euro not fallen through the floor? Back in 2010 the mere mention of the word bailout caused ...

www.sunbirdfx.com Wall Street made another strong finish to the trading week after many analysts estimated that the declines on the beginning of the week were the opening bell for a sharp correction. However, as we warned in the daily analysis several times, the chances that any instrument would change its trend dramatically without a cause of significant event are low, and as we figured, the investors took advantage of this slight correction to push more money into the stock markets. The result was that the NASDAQ set a new high, S&P 500 crossed above 1370 points again and Dow got close to 13,000. The rising came on the background of improving employment data in the US, which showed that the American economy created 227k new jobs. The investors will wait for the FOMC rate statement ...

A restructuring of Greece's colossal debt is widely expected to trigger insurance payouts and investment banks and hedge funds are working out who will be the winners and losers. If the restructuring goes ahead as planned under the terms of Greece's second international bailout, it could involve Athens forcing some bondholders to accept a much lower value. Credit Default Swaps (CDS) - financial instruments purchased to insure buyers against default - could offer some solace to those banks, fund managers and institutional investors that would see the value of their bonds dramatically cut. While there is a growing expectation that the CDS will be triggered, question marks over the pay-out process could mean costly surprises for those who must pay up and for those who might be disappointed ...

LONDON (Reuters)- No sooner are Europe's debt anxieties easing a touch than a sharp rise in oil prices threatens to impede the economy's tentative recovery from the euro's near-death experience with Greece. Brent oil has shot up about 20 percent since mid-December on concern over cuts in Iranian supply, and set an all-time high this week in euros. Oil has not reached a level that poses a grave danger to growth, economists say. In dollars, today's price around $123 is still below last April's $127 high, let alone the record peak of $147 scaled in 2008. But the risk is that consumers and companies, their confidence still fragile, will crawl back under the covers. "This comes at a difficult time for the euro area economy, which I would still characterize as being in a state of mild ...

The German Finance Minister, Wolfgang Schaeuble, added more pessimism and volatility to the market today after telling lawmakers that Greece is missing spending cuts targets, which intensified pressures forced on Greek politicians to meet targets by providing further austerity by next Sunday when the parliament should ratify and finalize the new austerity package. According to the finance minister, Greece will still have 136% debt-to-gross domestic product ratio by 2020 with the current austerity plan, comparing with the 120% target hoped to be reached by Greece with the second bailout package worth 130 billion euros provided by International lenders. Greek lawmakers will start voting on austerity measures this weekend, after the euro area finance ministers demanded the nation yesterday ...

Optimism mixed with uncertainty in the market, where we can see the euro is fluctuating within narrow levels; however, European stocks were able to record gains and now European markets depends on any improvement in the Greek-debt talks with creditors and also as the Greek Premier meets the leaders of the Greek political parties, discussing the terms required by international lenders to obtain the second bailout funds. Time is running out and now markets are very focused on the Greek financial situation, where despite the fact that debt-talks extended for a long period of time, the situation is getting more complicated as the wheel of time keeps on turning and now Greek officials must reach an internal agreement among the ruling parties and must also reach an external agreement with ...

Morning Briefing : Greece approaches deadline today, euro weaker What's new: Asia: Major equities seem mixed after a positive US close and doubts over Greece this morning Greece: Coalition Parties face troika imposed deadline United States: Stronger than expected Payrolls data last Friday Australia: Softer retails sales data point towards rate cut as early as tomorrow Forex rates in Asia and Indices: EURUSD: 1.3131– 1.3053. USDCHF: 0.9234 – 0.9190. GBPUSD: 1.5822 - 1.5765. EURJPY: 100.54 – 100.06. USDJPY: 76.80 – 76.49. DowJones: 12’862.23 +1.23% NASDAQ: 2'905.66 +1.61% S & P 500: 1'344.90 +1.46% Nikkei: 8’929.20 +1.1% Shanghai: 2'331.14 +0.03% Gold: $ 1'734.00 Crude Oil: $ 97.41 Comments: EUR/USD opened around 28 pips lower early in today’s session, opening at 1.3118. The buck ...

The pessimism remains dominant in the market as a new session starts, while investors are still looking forward to the October 23 summit, despite the discouraging comments from Merkel; however, the focus turned to the awaited critical fundamentals from Europe and U.S today. All eyes will be focused on the euro area current account along with the Bank of England Minutes during the European session, while the main focus remains on the inflation data from the world’s largest economy. As a start, the euro area will release the current account figures for August, where the deficit is expected to narrow, especially after the previously released trade balance reflected less deficit in August, which provided us with strong indications that the current account deficit could also ease since the ...