Bank Articles

Today we had the Bank of England interest rate decision and policy meeting, to which rates were unchanged as markets had expected.

Euro has been climbing against the greenback and the Aussie on concerns about growth prospects in the world’s two largest economies, the United States and China. Sentiment had been dented by data showing new orders for U.S. durable goods increased only modestly in February, below analysts’ expectations, while a gauge…

The forex market was volatile as headlines changed often during the last two days. Weak manufacturing numbers from the eurozone hurt investors’ sentiment. Thursday, market players remained short of euros on worries over an economic slowdown and high levels of sovereign debt in many euro zone countries. But on Friday…

The financial markets have been volatile lately due to the economic reports released recently. Data showing an unexpected increase in the public sector borrowing and the BOE minutes of the meeting showing two members voting for further quantitative easing had triggered a sharp dive in the Cable yesterday. For Posen…

Improving U.S. economic data had recently sparked speculation the Federal Reserve would raise rates sooner than its time frame of late 2014. However, the latest report on U.S. consumer prices eased a hawkish view on interest rates, leading the USD to fall and helping spur the sell-off in bonds. The…

Fitch Ratings revised down its outlook on UK’s AAA rating from stable to negative. Fitch said “The decision reflects the very limited fiscal space to absorb further economic shocks in light of such elevated debt levels and a potentially weaker than currently forecast economic recovery” in a statement late yesterday.…

It has been a tough year for the market participants. Currency traders had many whipsaws over the last twelve months. On the last trading day of the year, volume is expected to be thin. EUR/USD is trying to stay over 1.29 major support. We don’t expect any huge surprises today…

EUR/USD briefly rallied on hopes the ECB’s ultra-cheap funding tender would tempt banks to buy Italian and Spanish debt and pull yields lower. The tender eased concerns about an immediate credit crunch, but it also discouraged investors from lending to euro zone banks because of their large exposure to sovereign…

When we look at the price action in the forex market, we see that trading is thin due to approaching year end and cautious stance of investors. Investors remain doubtful about whether European leaders can end the debt crisis any time soon. Another factor which is souring the sentiment is…

Potential ratings downgrades and uncertainty in the eurozone have been dragging the euro lower. Since EU leaders disappointed investors and as a result, the euro lost its credibility. The recent price action in the forex market shows that investors lost confidence in EU politicians ability to end the ongoing debt…

EUR Sinks On Possible Mass Downgrade of Eurozone Countries Increasing concerns over slowing global growth and worsening European debt crisis are pressuring the forex market. EUR/USD fell sharply after German Chancellor Angela Merkel rejected to raise upper limits of the European Stability Mechanism (ESM). In addition, possible sovereign debt downgrades…