Dec 8, 2011

Forex Crunch ECB Press Conference Live Blog

Forex Crunch ECB Press Conference Live Blog

ECB Press Conference Live Blog

Posted: 08 Dec 2011 05:03 AM PST

The president of the ECB, Mario Draghi, is holding a press conference to discuss the rate cut just announced. He is also expected to announce more measures and ease liquidity for the struggling European banks. Will he take the quantum leap to a full scale QE program? 

Live updates from the press conference in this post.

Read the rest of the article ECB Press Conference Live Blog

ECB Cuts Rates by 0.25% to 1%

Posted: 08 Dec 2011 04:45 AM PST

The European Central Bank cut its benchmark Minimum Bid Rate by 0.25% to 1%, as expected. The new president of the ECB, Mario Draghi, fully reversed the rate hikes made by his predecessor Jean-Claude Trichet earlier in the year.

EUR/USD traded just above 1.3380 before the release, at the lower end of the 1.3360 and 1.3420 lines. EUR/USD moves up to 1.34.

Read the rest of the article ECB Cuts Rates by 0.25% to 1%

BOE Makes No Policy Changes – GBP/USD Ticks Up

Posted: 08 Dec 2011 04:01 AM PST

No change was made in the British policy – the benchmark interest rate remained unchanged at the historic low of 0.50% and the capacity of the Asset Purchase Facility (or QE) remained unchanged at 275 billion pounds. This decision was widely expected.

GBP/USD is ticking up after the release, moving from 1.57 to 1.5715.

Read the rest of the article BOE Makes No Policy Changes – GBP/USD Ticks Up

IMF Workaround Insufficient – Super Mario Still Awaited

Posted: 08 Dec 2011 03:20 AM PST

Reports are floating that the International Monetary Fund will receive loans for European national central banks and in turn use them to stabilize the struggling euro-zone countries.

This creative workaround bypasses legal limitations and could prove to be a great solution, but the figure that is reported casts a shadow: only €150 billion. This is no big bazooka…

Read the rest of the article IMF Workaround Insufficient – Super Mario Still Awaited

Will the ECB do the right thing? (Video)

Posted: 08 Dec 2011 02:52 AM PST

If yesterday's 'steer' from Bloomberg on the ECB meeting today proves to be true, then the ECB is going to fall into line with our expectations, as outlined yesterday (and below) and also last week (The ECB finally gets it).  This will involve a 25bp cut in rates, more measures on liquidity, but not real change in its bond-buying program.

Quite rightly, the ECB does not want to commit to anything more drastic before the EU summit has agreed on some significant measures on the fiscal front to create a roadmap towards greater fiscal integration. The single currency initially softened through yesterday afternoon on this story but has since recovered a touch to push back above the 1.34 level in early European trading. The ECB's modest caution towards the promises of politicians should be welcomed. Daily brief, in the video below:

Read the rest of the article Will the ECB do the right thing? (Video)

Israel-Syria-Lebanon Clash Could Precede Iran War

Posted: 08 Dec 2011 01:54 AM PST

A confrontation of the West and Iran could start in a so called “proxy war” between Israel and its two northern neighbors, Syria and Lebanon, where the Shiite Hezbollah calls the shots. Oil and currencies could move well before the conflict reaches Iran.

In the middle of the civil war raging in Syria, the Assad regime had the time and the resources to conduct a major military exercise in the east of the country on December 3rd and 4th. This met a response on December 6th by the Israeli side, that exercised an invasion in the Golan Heights, close to the Syrian border. There are quite a few more ominous sings:

Read the rest of the article Israel-Syria-Lebanon Clash Could Precede Iran War

EUR/USD Dec. 8 – All Eyes on Draghi

Posted: 08 Dec 2011 12:24 AM PST

Euro dollar is trading a big higher in a very limited range. All eyes are on the ECB rate decision. Mario Draghi is widely expected to cut the rates to 1%, but this isn’t 100% certain, and there are quite a few other policy options that could be introduced. This is a very busy day before the critical EU Summit.

Here's a quick update on technicals, fundamentals and what's going on in the markets.

Read the rest of the article EUR/USD Dec. 8 – All Eyes on Draghi

Forex Daily Outlook December 8 2011

Posted: 07 Dec 2011 01:30 PM PST

Rate decisions in the UK and in the euro-zone are the major market-movers as tension mounts towards the EU Summit. Let see what awaits us today.

In the US, Unemployment Claims, value the number the unemployed that asked for insurance on the past month, about to reduce down to 397K from 402K in November.

Read the rest of the article Forex Daily Outlook December 8 2011

ECB Will Do a Lot – But Fall Short of Convincing Markets

Posted: 07 Dec 2011 08:28 AM PST

Mario Draghi’s second rate decision will likely consist of his second rate cut in a row. There are expectations for additional measures such as easing collateral rules and extending loans to banks.

While all these steps are necessary and helpful in the current situation, they will likely be too little and too late for helping the euro-zone. Will the ECB make its quantum policy leap? Preview.

Read the rest of the article ECB Will Do a Lot – But Fall Short of Convincing Markets
posted by

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)