Oct 23, 2010

Your forexlive.com ENewsletter

Your forexlive.com ENewsletter

Link to ForexLive

German EcoMin Opposes Fed QE2; Can Be Seen as FX Manipulation

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By Johanna Treeck GYEONGJU, South Korea (MNI) - The prospect of a second round of quantitative easing by the U.S. Federal Reserve came in for heavy criticism during the G20 meetings here, German Economic Minister Rainer Bruederle said Saturday. "There was ...

Draghi: Calls For Less Reliance On Credit Rating Agencies

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GYEONGJU, South Korea (MNI) - The Financial Stability Board will release a detailed report on November 4 calling for reduced reliance on credit rating agencies, FSB chairman Mario Draghi said in comments for release on Saturday. "Principles will call on ...

Draghi: US Proposal For Global Rebalancing Worth Considering

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GYEONGJU, South Korea (MNI) - U.S. Treasury Secretary Timothy Geithner's proposal to set limits on trade surpluses and deficits as a percentage of a country's GDP merits consideration, Financial Stability Board chairman Mario Draghi said in comments for release on Saturday. ...

G20 Analysis: U.S. Targets China In Its Call for C/A Gap Cut

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By Max Sato GYEONGJU, South Korea (MNI) - U.S. Treasury Secretary Tim Geithner is targeting China in his call on fellow Group of 20 members to contain their current account imbalances within 4% of their GDP by 2015 as part of the group's drive for achieving ...

EFSF’s Regling Foresees Further Stab Pact Improvements: Press

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FRANKFURT (MNI) - The head of the European Financial Stability Facility, Klaus Regling, said Saturday he foresees further reforms to European fiscal rules emerging out of next week's Council of European leaders. Building on the agreement reached earlier in the ...

CFTC Requires Over-the-Counter Swap Reporting

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As step toward establishing trading limits, the U.S. Commodity Futures Trading Commissions (CFTC) approved a rule that requires traders to report over- the-counter swaps based on raw materials including oil and corn. According to the plan approved by the CFTC, derivatives considered "economically equivalent" to commodity futures must be reported in ...

ForexLive US wrap-up: Dollar steady ahead of G20 communique

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ECB's Bini-Smaghi: Stability Pact modifications weak Canadian retail sales rise 0.5% in August, July revised up to +0.1% Fed's Plosser: Does not think additional easing necessary; differences on the FOMC over size of asset purchases French Senate approves pension reform legislation Bloomberg: Draft version of G20 communique contains pledge for nations to avoid ...

Traders Debate If Fed Will Lift 35% Tsys Holdngs Rule For QE2

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By Sheila Mullan NEW YORK (MNI) - There is an ongoing debate in the U.S. Treasuries market about whether the Federal Reserve will be forced to lift its own rule barring the central bank from holding more than 35% in any one Treasury issue. ...

US DATA: Tsy’s mid-Oct allotments data show foreign..

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US DATA: Tsy's mid-Oct allotments data show foreign accounts took 11.5% of 3y, funds took $3.44b 28.9% of reopened 10y, funds took almost $3b 6.5% of reopened 30y and inv funds took $2.8b

More Friday frivolity…

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Reaction to G20 will be key

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Let's gaze into our crystal ball for a moment. It's Monday morning in Sydney: The G20 has passed with nothing approaching a framework on exchange rates/current account gaps. What's EUR/USD gonna do? My guess is we rally right out of the gate as traders put back on short dollar positions on ...

French Senate passes pension reforms

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Grab your gas-masks...

France’s Pension Reform Protest Continues As Bill Nears Vote

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By Stephen Sandelius PARIS (MNI) - Opposition in France to hiking the retirement age remains widespread despite the disruption in public services and fuel supply, and further protests are planned for next week even after the reform bill has been passed by parliament. ...

Fed’s Plosser still a QE skeptic

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Not convinced more asset purchases will help real economy at this juncture Not able to gauge exactly how asset buying will impact interest rates Different views among policy makers on "shock and awe" versus incremental approach Fannie/Freddie likely to cost taxpayers more than all other bailouts combined NY Fed lawsuit against BofA shows problems ...

Just for the hell of it…

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No real reason to post this other than I love the opening riff...

Let’s play again!

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Same rules as before...

EUR bounces back after probe below 1.39000

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Must have been a few stops below 1.3900 to trigger, I guess. EUR/USD has bounced back smartly and now trades in the 1.3925 area. I can say with compete confidence that I haven't got the foggiest idea where it's headed next...

Dollar showing a bit of late European strength

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Looks like the dollar is seeing a bit of pre-weekend short-covering as the week draws to a close in Europe. While no one expects much from the G20 this weekend (and all indications are we will get even less), with the market still overwhelmingly short dollars, we're just seeing some natural ...

USD/JPY claws its way through 81.35/40 offers

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The narrowly range-bound USD/CAD looks to be getting a modest pre-weekend boost, raising through offers which have capped the buck in the 81.35/40 area and reaching 81.48 so far. What can't go down must eventually go up, so maybe we get some short-covering from bored USD/JPY shorts looking for better opportunities ...

Canadian deficit narrows

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Canada posted a C$ 13.5 bln deficit in the April to August period this year versus a C$ 23.7 bln deficit in the same period a year ago.

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