I always like to be bullish on things but you cannot avoid he ground realities and say bullish. The Europe’s politicians join a chorus of policy-makers across the globe pushing for devaluations to fight for market share we can expect currency conflicts.
The telegraph reported – “Jean-Claude Juncker, EuroGroup chief, has signaled that Europe is no longer willing to be the last economic player holding the toxic parcel of an over-valued exchange rate, describing the euro as “dangerously high” after its three-month surge against the dollar, yuan and yen. View full article »
The European Central Bank has slashed its euro zone growth forecasts and warned that recession will drag on into the middle of next year, sending the euro plunging below €1.30 to the dollar.
Mario Draghi, the ECB’s president, said the governing council had discussed a cut in overnight deposit rate to below zero for the first time, and was “operationally ready” to do so if needed.
The comment sent the euro into a nosedive, View full article »
The Greek parliament narrowly approved a fresh austerity package on Wednesday night, opening the way for international lenders to transfer a long-delayed €31.5bn slice of funding and take steps to ease the terms of the country’s €174bn bailout. Why the Greek crisis was much larger, more complex and a greater risk than anyone assumed.
Gold prices were rallying in tandem with the dollar. As the market began to crater and eventually crash 1,000 points in one day the gold market actually continued to rally along with the dollar! For anyone familiar with gold and forex markets this was more than odd. But there is a reasonable View full article »
The SMP is dead! Long live the SMP!
OMT? Surely they could have just called it SMP2
What am I talking about?
It took the ECB a year of endless behind the scenes Machiavellian scheming to restart the SMP (Securities Markets Program) now View full article »
Foreign exchange market operates where currencies are bought and sold, where as in Euro currency market currencies are deposited and borrowed.
The reason Foreign market operates on exchange rate and Euro currency market operates on interests rates.
1) The Euro currency market originated out of the need of investors View full article »
I have 395 posts in my blog fortunately came to know that lot of articles where complicated so I thought of doing the
series back to school, so that the post relating to the ongoing crisis can be linked and easily understood. Will try to post them as simple as possible. Starting today the formation of European Monetary Union (EMU). The formation of EMU took place in 3 stages :-
1) Formation of European Economic Community (EEC)
2) Establishment of European Monetary system (EMS)
3) Introduction of common currency EURO (EUR)
1) Formation of European Economic Community (EEC) : Six countries namely View full article »
I truly believe it pays to be an optimist in life. it’s practically part of the job description. You can fearfully view a crisis as a time of loss and peril, or you can choose to view it as a time of opportunity with potential for positive change. The Eurozone crisis has triggered a ripple effect across global markets, and many investors are expressing pessimism about the economic health and sustainability of the region. Me? I’m an optimist. The output of Greece and the increasing intensity of financial shock waves radiated from Europe are approaching, and there is much we can do about it. The best advice that is not really very useful, and is closing the hatches, because we have rough seas ahead. View full article »
Well ever thought or imagine of influencing the reference rate. Barcalys did that exactly the same in return the regulator FSA fined it with the largest fine in an attempted manipulation of and false reporting of LIBOR and Euribor Benchmark rates.
The LIBOR rate is a critical element of the financial system. Before I move further some basics on it to understand the scenario: LIBOR stands for ‘London InterBank Offered Rate‘. It is produced for ten currencies with 15 maturities View full article »
I truly believe it pays to be an optimist in life. it’s practically part of the job description. You can fearfully view a crisis as a time of loss and peril, or you can choose to view it as a time of opportunity with potential for positive change. The Eurozone crisis has triggered a ripple effect across global markets, and many investors are expressing pessimism about the economic health and sustainability of the region. Me? I’m an optimist. With elections in Greece now behind us, there are still many unanswered questions. View full article »
It’s not a new story any more I hope I have written on this topic the maximum on my blog its huge series and contribution of the events one after the other. Why it is termed as a European Crisis ? Well going back to 2000 Euro a new currency was introduced to the European nations and the Germans love and affection for Deutsche Mark treated Euro as a stepfamily. They just forgot that the economy of Germany is export lead where as the other European economy are not so much competitive specially the PIIGS.
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