Towards the end of last year and early this year, the EUR/GBP cross rate joined the broader market repositioning out of the euro. Investors were well aware that the ECB will keep monetary policy extremely loose in the foreseeable future and will continue to provide ample liquidity. The poor eco outlook and the unresolved debt […]
A Down and Dirty Look at the EUR/GBP Read More »
On the last business day of March, the EU Finance Ministers announced their latest attempts to stave off the eurozone debt crisis by boosting the eurozone’s firewall to €800 billion ($US1.07 billion) on the same day as the new Spanish government Mariano Rajoy unveiled a massive cut in its budget deficit together the news failed
The EU Firewall – A Lifeline For Spain Read More »
The EU commission, which is warning that euro-zone governments shouldn’t get complacent, also favours a much bigger firewall. It argues one is needed to signal to the market in advance that other euro-zone governments stand ready to backstop our bigger member states under pressure, and calm contagion. By implication, if the firewall isn’t big enough, the market will doubt the
It’s Magic – Turning 80 Billion Euro Into 1 Trillion Read More »
German bonds had a second consecutive positive session on the back of bad EMU eco data whereas US bonds booked small gains. In a risk off sentiment, equities corrected further off the highs, commodities were dropped and on intra-EMU bond markets, spreads widened for a third straight day. Losses in EUR/USD were limited but will
Eurozone Reacts To Poor PMI Read More »
Negative sentiment returned to financial markets as the world slept with investors worried that the European heartland is now at risk of tumbling into recession. The flash PMI estimates for China, France, Germany and the wider Eurozone are published in quick succession on yesterday. Previously, the Markit Eurozone Composite PMI signalled a renewed contraction in
Negative Sentiment Returned To Financial Markets As The World Slept Read More »
“All We Are Saying Is Give Greece A Chance.” Are Strawberry Fields Forever? Oh no, not The Beatles. Apologies readers, but as a native of Liverpool it’s often stomach churning to witness them being used to promote movements or ideals. It’s beyond parody how much the iconoclasm of the group is maintained. By the way,
All We Are Saying Is Give Greece A Chance Read More »
It’s quite fascinating to note that whilst there is a Chinese delegation visiting Washington to meet with Barack Obama a European delegation is visiting Beijing. Whilst in the USA the Chinese officials have been very vocal their support of Europe (and the euro in isolation) similarly the European delegation in Beijing have been met with
China Commits To The Eurozone As Storm Clouds Once Again Gather Over Greece Read More »
Pandora’s box is an artefact in Greek mythology, taken from the myth of Pandora’s creation in Hesiod’s Works and Days. The “box” was actually a large jar given to Pandora which contained all the evils of the world. When Pandora opened the jar, all its contents except for one item were released into the world.
The UK Is A Rock In A Hard Place Read More »
“Greece Will Default On Its Debt And Will Eventually Leave The Euro” – Paul Krugman The USA jobs numbers could disappoint.. So another month ticks by and another ‘NFP day’ comes around. For what it’s worth my advice is that, unless you’re already in a trend trade, you should be incredibly wary of taking a
Greece Will Default On Its Debt And Will Eventually Leave The Euro Read More »
Following yesterday’s meetings in Brussels, Greek ministers have insisted that banks must accept a lower interest rate on the new Greek bonds that they will receive as part of the ‘swap’ deal. The 4% coupon demanded by the Institute of International Finance (IIF) (who represent Greek creditors) is not deemed to be acceptable. The move
Greek & Euro Ministers Play Game Of Show & Tell With Private Bondholders Read More »
