The prospect of a Greek exit from the euro zone, rising losses at Spanish banks, and a failure of labor reform in Italy will force the European Central Bank to inject more liquidity into the banking system through a long-term refinancing operation, according to the chief economist at German banking giant Commerzbank. “If the crisis threatens to escalate again, like in the autumn of last year, the
forexsq.com - Greece may have only a 46-hour window of opportunity should it need to plot a route out of the euro.
That’s how much time the country’s leaders would probably have to enact any departure from the single currency while global markets are largely closed, from the end of trading in New York on a Friday to Monday’s market opening in Wellington, New Zealand, based on a synthesis of eu
forexsq.com - Europe’s banks, sitting on $1.19 trillion of debt to Spain, Portugal, Italy and Ireland, are facing a wave of losses if Greece abandons the euro.
While lenders have increased capital buffers, written down Greek bonds and used central-bank loans to help refinance units in southern Europe, they remain vulnerable to the contagion that might follow a withdrawal, investors say. Even w
forexsq.com - European leaders are expected to announce limited measures aimed at softening the bite of austerity on the euro zone's troubled economies, but behind closed doors they will wrestle with deeply controversial policies that could overhaul the currency area's faltering economic machinery. forex
forexsq.com - US Dollar technical positioning warns that the greenback may correct lower before resuming the sharp advance beginning in late April. S&P 500 – Prices are finding intraday support above 61.8% Fibonacci retracement support at 1286.60, with a bounce from here seeing initial resistance at 1313.00 marked by the 50% boundary. Alternatively, a break lower exposes the 76.4% level at 1253.9
forexsq.com - The chaos in Greece has resumed and a new election that nobody expects to resolve anything looms. Exasperated European Union officials have begun openly discussing the country’s exit from the euro currency system. This is a grave mistake. Greece’s exit would be no less catastrophic than when the EU called it unthinkable -- and not just for Greece.
forexsq.com - Every day, rivers of green currency sheets flow through the presses at the Bureau of Engraving and Printing, the federal agency responsible for printing all of the country's paper money. The technology used to produce today's legal tender is a far cry from the steam-powered machines used to trim, separate and seal America's first currency notes in 1862. However, the multi-step proce
forexsq.com - The European Commission will present a plan to resolve failed banks in Europe before June 18-19, when leaders of the world's 20 biggest economies meet in Mexico, Commission spokeswoman Chantal Hughes said on Friday.
"Our objective is to present the proposal on a bank crisis resolution scheme before the G20 summit in June," Hughes said.
forexsq.com - There must be some truth in ‘an apple a day keeps the doctor away.’ Well the EUR bulls would like to believe that. After hours trading yesterday saw Apple earnings release give the risk market some freedom to roam higher. Roam is too strong, probably feel its way higher, but remain in this well defined EUR range ahead of the FOMC release. Trader stops and Mideast buying has been abl
forexsq.com - The benefits of strong trends can be obvious. Strong trends are one of the many reasons that record-numbers of traders are flocking to the Forex X Market from other arenas such as stocks, or equity options. When a currency pair like the Australian Dollar goes on a run as it did through 2010 and the first half of 2011, the benefits to traders can be huge. Not only can a massive numbe
forexsq.com - European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain’s government battles to quell renewed market turmoil over its finances.
Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain’s position have ratcheted the nation’s borrowing costs t
forexsq.com - Efforts to resolve the two-year-old European debt crisis swung back to world leaders after euro-area policy makers boosted a firewall designed to overcome doubts about their crisis response and to lure additional emergency aid.
The dollar retreated a touch in Asian trading hours on Wednesday, a day after investors turned to the U.S. currency for its safe-haven appeal.
The ICE dollar index DXY -0.17% , which measures the greenback against a basket of six currencies, reached 79.711, slightly down from 79.843 in late North American trading on Tuesday.
The dollar gained on Tuesday as worries about the success of Greec
Forexsq.com - The dollar turned up against major currencies and extended gains against the euro Wednesday after Federal Reserve Board Chairman Ben Bernanke said he’s watching mixed signals from the economy.
The shared currency was under pressure earlier after European banks grabbed more than expected of cheap loans in the European Central Bank’s long-term refinancing operation.
Forexsq.com - The euro pared gains against the U.S. dollar on Tuesday, following the release of dismal U.S. manufacturing data, but the single currency remained supported ahead of a liquidity boosting operation by the European Central Bank.
EUR/USD pulled back from 1.3462, the session high to hit 1.3428 during European afternoon trade, still up 0.22%.
