Destabilize The Entire Euro

(Reuters) - Myanmar will begin a managed float of its currency in the fiscal year starting in April and wants to develop an interbank money market to end a black-market currency system that critics say deters investment and abets kleptocracy. Central bank deputy governor Maung Maung Win laid out the currency plan, Myanmar's boldest economic reform yet, in documents seen by Reuters on Tuesday that said preparations to unify the dual exchange rate should be made by the end of this month. That would be followed over the next 12 months by a managed currency float and the introduction of an interbank currency market. From 2013/14 onwards, Myanmar would aim to "entirely eliminate" the "informal" currency market, the documents said. Last March the former military junta made way for a nominally ...

(Reuters) - The euro rallied across the board on Tuesday, hitting an eight-week high against the dollar on optimism that Greece is about to agree on a bailout deal that will enable it to avoid a messy default. A Greek official's statement suggested that the Greek government has completed negotiations with lenders on its 130 billion-euro rescue package, although agreeing to the painful austerity measures that come with the bailout could be a challenge. Greek political leaders had balked at the austerity plan required to receive the rescue funds. But a firm deal appears to be in the works even though Greek political leaders postponed a meeting on a bailout package until Wednesday. For Greece, failure to secure the 130 billion euro ($170 billion) rescue would mean it faces a messy debt ...

(Reuters) - The euro gained across the board, hitting eight-week highs against the dollar on Tuesday, after a Greek official said the government is drafting an agreement on a bailout deal that will be put before political leaders for approval later in the day. The official's statement suggested that the Greek government has completed negotiations with lenders on its 130 billion-euro rescue package, although agreeing to the painful austerity measures that come with the bailout could be a challenge. Greek political leaders had balked at the austerity plan required to receive the rescue funds. "The market is expecting a Greek deal, so there's greater optimism overall. That drove the euro to several key technical levels," said Greg Moore, currency strategist, at TD Securities in Toronto. " ...

(Reuters) - The euro slipped against the dollar on Tuesday but stayed within its recent range as investors waited to see whether Greece will agree to painful austerity measures that are crucial for a rescue package to avoid a messy debt default. Optimism over Greece waned during the European session, dragging stocks and risk-sensitive currencies including the Australian dollar down from their highs. For Greece, failure to secure the 130 billion euro ($170 billion) rescue would mean it faces a messy debt default and destabilize the entire euro zone. "Clearly the tail-risk at this time is that developments in Greece lead to a disorderly situation and a sharp move lower in the euro," said Lee Hardman, currency strategist at BTM-UFJ. Citi's chief economist Willem Buiter raised the estimate ...

(Reuters) - Gold prices eased towards $1,710 an ounce on Tuesday in line with a softening euro as traders awaited a breakthrough on talks over a second bailout deal for Greece, with its leaders fighting to avoid a chaotic debt default. Spot gold eased 0.4 percent to $1,712.79 an ounce at 1210 GMT (7:10 a.m. EST), while U.S. gold futures for February delivery were down $10.20 at $1,714.70. While a retreat in stock markets and the euro kept gold under pressure on Tuesday, the precious metal still is up 10 percent so far this year after December's sharp drop, supported by a Federal Reserve pledge to maintain ultra-loose monetary policy. The euro eased 0.2 percent versus the dollar. For Greece, failure to secure the 130 billion euro ($170 billion) rescue would mean it faces a messy debt ...

(Reuters) - The euro held its ground against the dollar on Tuesday as most traders clung to hopes Greece would finally clinch a rescue package despite its politicians postponing a decision to accept painful terms by yet another day. Greek optimism also helped equities and other risk sensitive currencies including the Australian dollar. The Aussie also got a boost when the Reserve Bank of Australia surprisingly kept interest rates steady at 4.25 percent. Failure to secure the 130 billion euro ($170 billion) rescue for Greece would risk a messy debt default and destabilize the entire euro zone, an outcome deemed too extreme to contemplate by many experts. European Union officials say the full package must be agreed with Greece and approved by the euro zone, European Central Bank and ...

(Reuters) - The euro nudged lower on Tuesday in Asia, though most traders clung to hopes Greece would finally clinch a rescue package despite its politicians postponing a decision to accept painful terms by yet another day. The Australian dollar jumped a full cent to a six-month peak at $1.0812 and reached a record high on the euro after the Reserve Bank of Australia in a surprise move kept interest rates steady at 4.25 percent. Failure to secure the 130 billion euro ($170 billion) rescue for Greece would risk a messy debt default and destabilize the entire euro zone, an outcome deemed too extreme to contemplate by many experts. These hopes have kept euro bears in check for now, resulting in a volatile but resilient single currency. The euro stood at $1.3108, a tad below late New York ...

(Reuters) - The euro held steady in Asia on Tuesday as markets remained sanguine that Greece will eventually clinch a rescue package, even as the country's political leaders delayed their decision to accept painful terms by yet another day. Failure to secure the 130 billion euro ($170 billion) rescue would risk pushing Athens into a chaotic debt default and destabilize the entire euro zone, an outcome deemed too extreme to contemplate. That was seen keeping euro bears restrained for now at least, resulting in a volatile but resilient single currency. It stood at $1.3122 on Tuesday, little changed from late New York levels. A recovery from $1.3026 overnight kept the common currency within reach of a six-week peak around $1.3230 set last week. Only a clear break of $1.3020 would see the ...

We warned it would happen and it happened as we warned. “Off with their heads! Off with their heads!” chanted the angry mob as they attacked the Royal Rolls Royce carrying Prince Charles and his wife Camilla. “Off With Their Heads 2.0” read the headline of our Autumn Trends Journal (10 October 2010) predicting the outpouring of outrage that would accompany the harsh austerity measures inflicted upon the general public, while governments doled out generous bailouts and rescue packages for bankers and financiers. Since the onset of the Greatest Recession, I’ve been informing readers to expect uncontrolled unrest that would roil markets and destabilize governments. When people lose everything and they have nothing left to lose, they lose it. The spontaneous attack on the Royal couple was ...