Posts tagged ‘euro’

February 17, 2012

EURUSD – Bullish At 1.3300+


The Euro corrected to my 1.3000/1.2975 target yesterday (as advised in my FX Trading Service to subscribers world-wide) and today I am again bullish on the Euro at 1.3085/1.3070, for the resumption of uptrend toward my next target at 1.3320/1.3350 (eventually much higher!).

February 15, 2012

Euro Flip-Flops on Greece, Sentiments Boosted by China Elsewhere

Euro continues to flip flop against dollar with a soft tone on news from Greece. On the one hand, it’s reported that the EU group meeting will be replaced by a conference call as final details regarding the Greek bailout plan are not yet ready. According to Jean-Claude Juncker, the change was due to the situation that ‘there weren’t sufficient elements of consensus to be sure that a meeting would be successful’. He also noted he has not yet received the required political assurances from the leaders of the Greek coalition parties on the implementation of the program. On the other hand, after the change on the EU meeting, it’s reported that political leaders from Greece would promise to implement the austerity Wednesday. The news helped DOW staged a late rebound to close nearly flat and set the stage for strength in Asian equities.

In Asia, sentiments were generally lifted as China pledged to invest in European bailouts. Chinese Premier Wen Jiabao said yesterday at a joint press conference with EU President Van Rompuy that “China is ready to get more deeply involved in participating in solving the European debt issue.” This is echoed by PBoC Governor Zhou xiaochuan today as he said that “China will always adhere to the principle of holding assets of EU sovereign debt” and “would participate in resolving the euro debt crisis”. This is seen as a commitment from China that at least it won’t be cutting European bond holdings and would instead look for opportunities to invest more.

Data released today so far is positive with New Zealand retail sales rose more than expected by 2.2% qoq in Q4 while Australia Westpac consumer confidence rose 4.2% in February. A number of key economic data will be released today included Q4 GDP data from Eurozone countries, UK job data, BoE inflation report, Swiss EW, US manufacturing data as well as FOMC minutes. Be prepared for a busy ride!

February 13, 2012

EUR/USD – Greek deal doesn’t imply Euro rally


After the Greek Parliament approval of the austerity measures package, now it’s time for the EU finance ministers to discuss about the second bailout details. The meeting will take place on Wednesday, the same day some reports expect the PSI deal to be closed.

“We see a Greek deal as a ‘must do’ event to avoid a disorderly Greek default but not necessarily as a source of significant boost for the euro”, says Vassili Serebriakov, currency strategist at the Wells Fargo Bank, that still points to risk assets’ strength: “We also maintain a bullish medium-term bias on commodity and emerging currencies, although we would be more careful about entry levels given their recent rapid gains”.

February 9, 2012

Draghi confirms Greek deal, Eurogroup in focus

ECB President Draghi confirms that an agreement has been reached by Greece and Eurogroup meeting will discuss further steps. While refusing to comment on ECB/NSB participation via their GGB holdings the meeting will be much in focus in terms of how exactly the deal will be structured in order to allow the ECB to give over its profits on Greek bond holdings.

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February 2, 2012

EURO morning fundamental

‘The merger between Deutsche Boerse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide’ – Joaquin Almunia, competition commissioner

EU blocks merger of NYSE and Deutsche Boerse

Impact High

The European Commission has blocked a 9 billion dollar merger between Deutsche Börse and NYSE Euronext stock exchanges, saying that it would have stifled competition and created a monopoly in derivatives trading.

‘Despite the remedies offered by the companies, the European Commission concluded that the combination would significantly impede effective competition and declared the concentration to be incompatible with the Common Market,’ Deutsche Boerse’s statement said.

‘The merger between Deutsche Boerse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide,’ said competition commissioner Joaquin Almunia.

‘These markets are at the heart of the financial system and it is crucial for the whole European economy that they remain competitive. We tried to find a solution, but the remedies offered fell far short of resolving the concerns.’