ForexTribe is a french website mainly created to share graphic analysis and trade ideas on the Forex Forum.
Europe Wide StressTitle:
Forex - Nervous Trading Ahead of Thursdays EU Summit
Forex News and Events:
A slightly more slightly optimistic tone, after yesterday when the European bank stress tests were deemed flawed (not even mentioning a sovereign default) and triggered a risk off environment. However, is a growing sense of trepidation around Thursday`s EU summit which has manifested itself in choppy, quick to find safe-havens trading. Traders are nervously watching the aggressive sell-off in Spanish and Italian sovereign yields. There is a feeling that the event horizon for these larger European economies is not too far off (especially with Italy having to go to the capital markets heavily in the remainder of the year). However, in anticipation of positive events potentially emerging from the Summit, short-term traders have been unwinding short EURUSD positions. ...
Title:
Stocks, euro fall as debt fears grow
The euro, stocks, and bonds of highly indebted European countries fell on Monday as investors fled riskier assets on escalating U.S. and euro zone debt worries, while safe-haven gold rose to a fresh high.
European banking shares took a beating after euro zone stress tests, whose results were released late on Friday, failed to address the potential for a Greek sovereign debt default, which many economists expect to happen in some form.
Attention is centered on a meeting of the region's leaders later this week that may prove critical in determining the role of private sector creditors in further aid to Greece.
Investors were also nervous about the lack of progress in U.S. debt negotiations on averting a government default as the deadline to raise the $14.3 trillion debt ceiling loomed, ...
Title:
Forex - Focus Back on EU Debt Crisis & Policy Makers Approach
Forex News and Events:
With European sovereign debt concerns re-emerging, risk aversion has been the dominate theme as the Forex market opens this week. Asian regional equity indices were marginally lower as the USD gained across the board (S&P 500 managed to climb +0.56% close on Friday). An FT article stated that the ECB’s Trichet had inched back on this view that in some cases EU bonds in default could be consider as collateral. The ECB’s semi firm commitment to accept bonds in default had previously offset some of the credit agencies downgrades. Trichet stated “the ECB could not accept defaulted bonds as collateral” and that “other EU governments would have to come up with ways to keep Greek banks in business if they continued pushing for a bail-out plan that would lead to bond ...
Title:
Euro falls broadly; markets on edge over debt crisis
(Reuters) - The euro fell broadly on Monday, with a euro zone sovereign debt crisis that looks to be getting worse pushing nervous investors toward perceived safe-havens such as the Swiss franc and yen.
European bank stress test results released on Friday did little to calm jitters, and attention is shifting to the next emergency meeting of EU leaders scheduled for Thursday, when a second bailout package for Greece will be under discussion.
German Chancellor Angela Merkel called on Sunday for private investors to make a major contribution to bailing out Greece. Officials proposed a range of schemes for the European Financial Stability Facility to finance a buy-back or a swap in which private owners of Greek government bonds would accept cuts in the face value of their holdings.
However, ...
Title:
Weekly Economic and Financial Commentary : 17/07/2011
Weekly Economic and Financial Commentary
U.S. Review
Mixed Economic Data Points to Moderate Growth
Retail sales came in slightly higher than expected in June as higher sales at automobile dealers offset reduced spending at gasoline stations. With household budgets stretched thin, discretionary spending in most major categories remained weak.
Inflation measures over the past week indicated that the pace of inflation is slowing; however, core inflation measures are still picking up.
The trade deficit widened in May as crude oil imports jumped on both higher prices and volumes while exports were pulled down by weak industrial supplies demand.
Mixed Economic Data Points to Moderate Growth
It was a mixed week for economic data, with inflation concerns subsiding somewhat and the ...
Title:
The Weekly Bottom Line : 17/07/2011
The Weekly Bottom Line
HIGHLIGHTS OF THE WEEK
United States
Moody's and Standard and Poor's took the unusual steps of placing U.S. government debt on a downgrade review. While a deal on the debt ceiling remains the most likely scenario, it is not a sure thing.
Europe's sovereign debt crisis entered a new and alarming phase this week, as markets shifted their focus to highly indebted Italy.
In Bernanke's testimony to Congress this week, the Chairman revealed that the evolution of Fed policy remains as deeply data dependent as ever.
Canada
This week's economic data showed that Canada is emerging from the economic lull hit in the second quarter. Exports rose 1.2% in the May, the Bank of Canada outlook survey also showed that Canadian businesses remained relatively upbeat ...
Title:
Crunch Time in US Debt Negotiations
The Week Ahead
Highlights
Crunch time in US debt negotiations
QE3 - not so fast
Europe's stress test results with a caveat
CHF and JPY strength prompts jaw-boning
Divergent economic performance in Oceania
Key data and events to watch next week
Crunch time in US debt negotiations
US congressional leaders and the White House appear far from reaching any sort of comprehensive ‘grand bargain' to cut the US deficit and raise the government's debt ceiling. Talks are ongoing, but the rhetoric on both sides seems to be deteriorating, suggesting that compromise may be falling out of reach. Time is tight and a deal needs to be reached by the end of next week to allow for legislative passage before the drop dead date of Aug. 2. At this point, we see three main potential ...
Title:
Politics Poisons Debt Debate
Economic Data Analysis
Politics Poisons Debt Debate
Safe-haven buying rose sharply on Eurozone contagion, affecting Spain and Italy, as officials disagree on next steps, while US debt ceiling concerns mount.
Reaction to EBA bank stress tests and possible further discussions this week will guide the contagion outlook.
White House stressed debt ceiling deal must be reached by next Friday to allow legislative timeframe for 2 August.
MPC minutes likely to show hopes for more QE overdone. June's retail sales should post rebound.
The Eurozone crisis plumbed new depths this week with Eurozone finance ministers suggesting the need for Greece to default on some of its obligations. Contagion washed across the currency area with Spain and Italy high profile casualties, with the ...
Title:
Dollar steadies as impact from S&P warning short-lived
(Reuters) - The dollar steadied in Asia on Friday after the impact from a Standard and Poor's warning that it could cut U.S. credit ratings was short-lived, and investors bought back the U.S. currency as they shifted their focus to stress tests on European banks.
The ratings agency warned there was a one-in-two chance it could cut U.S. ratings if no deal was reached on raising the government's debt ceiling.
The dollar briefly came under selling pressure, but the impact was short-lived, perhaps because Moody's had already raised the possibility of a downgrade. Dealers said the market might also be hoping that the pressure from the agencies would jolt U.S. lawmakers into doing a deal.
"The impact from S&P's move is very limited. Obviously, it's not great for the dollar, but contrary to ...
|