Debt Crisis Articles

Investors’ Focus Shift to Bank of Japan

After a two-day meeting of the Federal Open Market Committee, the central bank left its interest rates unchanged. Fed policy makers upgraded their forecasts for growth and unemployment this year while repeating their view that borrowing costs are likely to remain “exceptionally low” at least through late 2014. Fed Chairman…
April 26th

EUR/USD Climbs As Investors Eye FOMC

The latest data came out of the U.S. point to steady but slow growth. While strong U.S. corporate earnings are boosting the investors’ sentiment, this week the market participants will focus very closely on the minutes of Federal Open Market Committee and Chairman Ben Bernanke’s press conference. We think that…
April 22nd

SNB Chief Jordan Vows to Defend Ceiling

EUR/USD fell for the second day as investors took a cautious stance ahead of Spanish and French bond auctions. Concerns that the country will be unable to finance its debt were tempered after it sold more 12-month and 18-month bills than expected on Tuesday. Eurogroup chief Jean-Claude Juncker said that…
April 19th

USD Gains on Europe Debt Concern

EUR/USD headed downward as investor concern over Europe’s debt crisis intensified and economic reports in China missed estimates. China said its economy expanded 8.1% in the first quarter, the slowest pace since 2009. The yield on 10-year Spanish sovereign debt climbed 16 basis points to 5.98%. Also the cost to…
April 15th

EUR/USD Climbs As Europe Debt Fears Ease

In its latest Beige Book business survey The Federal Reserve provided an assuring assessment of the U.S. economy, after Friday’s data showing a sharp slowdown in U.S. jobs creation in March triggered a sell-off in global markets earlier this week. Comments by two top Fed officials suggest the central bank…
April 12th

Investors Reduce Net Short Positioning In Euro

Even though the euro was weighed by worries about Spain’s high debt level the EUR/USD gained on Friday in thin trading after sharply lower-than-expected U.S. jobs figures bolstered views the Federal Reserve could yet ease policy further to boost the world’s biggest economy. The data showed that U.S. Non-farm payrolls…
April 8th

USD Climbs as Europe Debt Worry Stings Risk Appetite

EUR/USD fell sharply as poor Spanish bond sale heightened concerns about funding difficulties by lower-rated euro zone countries and after Federal Reserve minutes reduced expectations for further monetary stimulus in the United States. Comments from European Central Bank President Mario Draghi that the euro zone’s economic outlook is subject to…
April 5th

Firewalls Won’t Solve The Debt Crisis

EUR rallied against its major counterparts on the last trading day of the first quarter after budget cuts in Spain boosted hopes the country could stick to an austerity path and European Union finance ministers meeting agreed to boost the scope of the euro zone’s firewall to over €800 billion.…
April 1st

Investors Shift Focus To EU Summit

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…
March 29th

EUR/USD Climbs on Weak U.S. Home Sales

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…
March 25th

Chinese Data Disappoints Investors

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…
March 22nd

Euro Crisis Is (Far From) Over

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…
March 18th

S&P Downgraded the EFSF

Recent price action in the forex market indicates that the downgrades have already been priced in. EUR/USD is showing bullish signals even though the European Financial Stability Facility, designed to fund rescue packages for Greece, Ireland and Portugal partially with bond sales, lost its top credit rating at Standard &…
January 17th

Market Focus Shifts to Bond Auctions

Forex investors trimmed bearish bets against the euro yesterday after Fitch Ratings Agency said it is unlikely to downgrade France. However, the lack of agreement by European leaders on how to implement fiscal reforms to prevent contagion puts the region at risk. As we can see from the price action,…
January 11th

Currency Speculators Boosted Short Positions to Record Levels

Today’s meeting of Merkel and Sarkozy is probably the key event for the EUR/USD this week. French President Nicolas Sarkozy and German Chancellor Angela Merkel are going to meet in Berlin to craft a master plan for rescuing the debt plagued eurozone countries. The talks will be followed by a…
January 9th

EUR/USD Sliding – Investors Have Doubt About the Health of Europe’s Economy

EUR/USD is sliding as concerns about the ability of euro zone countries to refinance their huge public debt increase each passing day. Today France will add to the brisk start to the 2012 debt auction calendar by selling up to €8 billion of bonds. Analysts say France is seen as…
January 5th

USD Slides Ahead of ISM Data

Even though some analysts bet that eurozone will start disintegrating this year and will almost certainly collapse within the next decade, EUR/USD is climbing today and trying to pass 1.3000 barrier. Signs showing that manufacturing is expanding in the world’s two largest economies boosted investors’ optimism about the global economy.…
January 3rd

Forex Weekly Technical Analysis – 01/01/12

EUR/USD Technical Analysis First of all, I would like to say happy new year! This year will be as volatile as the last year and of course, many traders’ focus will be on EUR/USD. Headlines from the eurozone and the United States will dominate the financial markets. Last year’s candle…
January 1st