Jan 8, 2011

Your forexlive.com ENewsletter

Your forexlive.com ENewsletter

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Fed’s Evans ‘Open-Minded’On QE2 Size;Changing ‘High Hurdle’-2

Posted:

--Says Fed Could Decide to Stop Buying Bonds But Keep Funds Rate Low By Steven K. Beckner Explaining why banks have thus far preferred to hold large excess reserves rather than increase lending, Evans said, "It's definitely been the case that, when I talk to bankers, I ...

Fed’s Evans ‘Open-Minded’ On QE2 Size; Changing ‘High Hurdle’

Posted:

--Says Fed Could Decide to Stop Buying Bonds But Keep Funds Rate Low By Steven K. Beckner DENVER (MNI) - Chicago Federal Reserve Bank President Charles Evans said late Friday he has "an open mind" about the $600 billion size of the Fed's quantitative easing program, but ...

Fed’s Evans: ‘We Need To Keep FFR Low For Extended Period’

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By Steven K. Beckner DENVER (MNI) - Chicago Federal Reserve Bank President Charles Evans made clear Friday his will be a vote for the continuation of an aggressively stimulative monetary policy this year. Evans, who will be a voting member of ...

ForexLive US wrap: Euro dominates even though it was employment Friday

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US non-farm payrolls rise 103,000, unemployment rate falls to 9.4% Canada adds 22,00 jobs, unemployment rate steady at 7.6% German exporters group: No euro collapse; sees 1.20/1.45 range this year; German GDP 1.5-1.75% Fed's Bernanke: Economy recovering but not fast enough to lower unemployment. SNB denies Portuguese bonds excluded as collateral; were never ...

US DATA: Nov consumer credit +$1.4b vs +$7b Oct (was.

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US DATA: Nov consumer credit +$1.4b vs +$7b Oct (was orig +$3.4b). Revolving -$4.2b and nonrevolving +$5.6b (incls auto loans). Federal govt NSA credit +$3.6b (student loans?).

US consumer credit rose $1.3 bln in November

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October figures were revised higher to +7.0 bln from +3.4 bln... During the recession, consumer credit contracted dramatically. Mildly positive gains in credit use suggest better consumer sentiment...

ForexLive Classic: Why are we programmed to fade trends?

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Here is a post written well over a year ago, it was first published September 11 2009. It bears repeating: Forex traders, and traders in general, tend to break the Newtonian laws of physics at an alarming rate. Newton wrote that an object at rest tends to stay at ...

US CBO Estimates -$80b Dec US Gov’t Deficit; -$12B Vs Yr Ago

Posted:

--Estimates Treasury Will Record -$371b Deficit In Q1 FY'2011 WASHINGTON (MNI) - The following is the text of the U.S. Congressional Budget Office's January Budget Review published Friday with it's estimate for last month's deficit. The U.S. Treasury Department is scheduled to release its monthly statement ...

CBO estimates Q1 deficit of $371 bln

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Projects revenue growth of 9% versus year ago Outlays projected up 3% from a year ago Deficit is projected to be $18 bln lower than Q1 of 2010 According to the Congressional Budget Office.

Portugal selling bonds in a private placement

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This is interesting. Rather than auctioning bonds, as they were expected to do as early as next week, Portugal will sell bonds in a private placement. That should given them a bit more control over pricing and leave less to chance. Who'd buy the private placement? Well there is one country which ...

Excerpts: Fed’s Duke: Recovery To Gain Even More Momentum -2

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--Evidence Asset Purchases Putting Downward Pressure on L-term Rates WASHINGTON (MNI) - The following is the second and final part of excerpts from the speech by Federal Reserve Board Governor Elizabeth Duke Friday at the Maryland Bankers Association First Friday Economic Outlook Forum, in Baltimore, Maryland: ...

Excerpts: Fed’s Duke: Recovery To Gain Even More Momentum -1

Posted:

--Evidence Asset Purchases Putting Downward Pressure on L-term Rates WASHINGTON (MNI) - The following is the first part of excerpts from the speech by Federal Reserve Board Governor Elizabeth Duke Friday at the Maryland Bankers Association First Friday Economic Outlook Forum, in Baltimore, Maryland: ...

Fed’s Duke echoes the Boss

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Recovery gaining momentum, will gradually bring down unemployment Recovery not sufficient to bring down unemployment noticeably but signs gaining traction inflation to stay subdued on economic slack Recent rise in rates due to expectations of stronger growth, ratcheting back of expectations of additional Fed purchases Can put upward pressure on rates by draining reserve ...

US Senate Budget Panel Seeks Bernanke Advice on Fiscal Plans

Posted:

--Hill Panel Seeks Input on Size, Timing, Composition of Debt Cut Plan --Senate Budget Panel Chief Says Hill Must Approve Credible Plan This Yr --Sen. Conrad: U.S. Fiscal Policy Is at 'Critical Juncture' --Top Republican On Panel Questions Bernanke About Gradual Phase-In By John Shaw WASHINGTON (MNI) - During Federal ...

Irish FinMin: Can’t change size and speed of budget cuts

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A new government could change details of budget cuts but not the fiscal impact The sitting government is expected to be voted out when the next general election is contested, seen now around the mid-March timeframe.

EUR/USD continues to grind lower

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No relief for the euro as the single currency extends its losses toward 1.2900, here a barrier is struck. Prices briefly popped to the topside on word from the SNB that they had taken no new action on Portuguese debt, but like all the other rallies today, that one was quickly ...

Obama Admin To Focus On Tax Credits,Incentives To Spur Jobs

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--Labor Sec Solis: UI Benefits Extension Could Keep Unemp Rate Elevated By Ian McKendry WASHINGTON (MNI) - The Obama Administration will continue to focus on utilizing tax credits and incentives to combat ...

Analysis:No Sign From Bernanke Fed Heading Toward Exit Soon -2

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By Steven K. Beckner Bernanke also cited FOMC participants' projections that inflation will stay "at historically low levels for some time." And he said "very low rates of inflation raise several concerns." "First, very low inflation increases the risk that new ...

Analysis:No Sign From Bernanke Fed Heading Toward Exit Soon -1

Posted:

By Steven K. Beckner DENVER (MNI) - Federal Reserve Chairman Ben Bernanke gave no indication Friday that he is inclined to steer monetary policy in a firmer direction in the foreseeable future. Although he said the Fed must find "the right ...

Portuguese bonds were never eligible for SNB collateral

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Earlier talk that Portuguese bonds had been excluded from eligibility for use as collateral turns out to be false. Only because Portuguese bonds were never eligible in the first place, according to the SNB, via Reuters. No new decision on the matter has been taken...

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