ECB’s Liikanen says he sees some signs of stabilisation in the global economy and the worst could be over, but doesn’t expect a rapid economic recovery. The official sees the operability of the global financial system as still very limited, and sees a risk that credit losses will erode financial institutions’ standing and ability to lend. Liikanen says the ECB never precommits on rates, and reiterates that the governing council has not decided this is the lowest level of rates.
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ECB’s Liikanen: Sees no rapid global economic recovery
June 9 2009, 11:23am | Comments »
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Interesting look at economic sausage-making
One interesting nugget in this behind-the-scenes view of economic policy-making in the Obama Administration is the view that Ben Bernanke just might be reappointed when his term is up in January.
- Tags:
- Forex
- economic
- sausage-making
June 8 2009, 6:09pm | Comments »
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Dudley: No more Treasury buys needed if yield rise due to economic optimism
The Economist has an interview with NY Fed chief Bill Dudley. He says that if US yields are rising for the right reasons, the Fed won’t have to keep buying (or add to its $300 bln announced intentions) Treasuries. The dollar has continued its comback on the remarks which can be found here. To the extent yields are going up because the economic outlook is brighter, the answer would be, don’t do anything. That’s what we expect and hope for.
June 5 2009, 9:11pm | Comments »
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Nikkei reports Japan to remove “worsening” from economic assessment
According to the Nikkei Website, Japan will remove worsening from its monthly economic report. Recent behavior of Japanese investors would imply as much as they feel comfortable assuming more risk overseas. USD/JPY trades at 95.70 while EUR/JPY trades at 136.75, down from 137.43 highs.
- Tags:
- Forex
- assessment
- economic
June 2 2009, 8:06pm | Comments »
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The Greenback Rose After Strong Economic Data
The release of strong economic data from the U.S. economy led to a stock market rally in the U.S. and the rest of the world. This led to strong implications for the Dollar. The Dollar rose against the Yen, whilst dropping against the British Pound. However, there was very little movement against the EUR. The main factors affecting Dollar volatility yesterday were the release of optimistic manufacturing, personal income, and construction figures from the U.S. This led traders to the conclusion that the worst of the economic downturn in the U.S. is over. The results of the data releases led the Dollar to tumble to an 8-month low against the Pound. The pair closed higher by nearly 230 pips at 1.6445. The greenback rose by nearly 140 pips vs. the Yen to 96.37, as investors dropped the JPY for higher-yielding assets. The Dollar’s behavior against the EUR was more stable as the pair remained virtually unchanged, up barely 10 pips at 1.4154. This was mainly due to traders putting their money into riskier investments on both sides of the Atlantic, leading to low volatility in the EUR/USD currency cross. Looking ahead to today, there are 2 important news events coming out of the U.S. These are the Pending Home Sales data set to be released at 14:00 GMT, and the Total Vehicle Sales figures that will be released throughout the afternoon. Forex traders are advised to take up their positions in the Dollar and its major crosses early in the day as markets are likely to go volatile as Europe also publishes unemployment data later in the day. Additionally, investors are likely to weigh-in on the real value of the U.S. Dollar as the forex market still reacts to Monday’s U.S. data.
- Tags:
- Forex
- economic
- Forex News
- Data
June 2 2009, 11:49am | Comments »
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