Italy and Spain Debt Auction This Week

11-01-2012

The Euro held its ground against the greenback yesterday, in small part due to the relieving announcement by the rating agency Fitch, that the French economy was not in danger of being downgraded. The EUR/USD was up slightly near the end of yesterday by 0.15 percent, trading at 1.2784. Both the Euro and the Pound are down this morning against the USD, trading at 1.5459 and 1.2744.

Spotlight returns to Italy

The sigh of relief by investors after the announcement by Fitch that France will keep its credit rating for the immediate future was short lived when the credit rating agency claimed that an Italian downgrade was a strong possibility. Greece was under the microscope as well, with German Chancellor Angela Merkel claiming that additional aid to the debt ravaged country was not possible until a write down on Greek debt from private creditors was accomplished.

Italy and Spain auction debt

Italy and Spain, two of the most troubled economies in the EU, and a serious cause for concern regarding the future of the single currency, are scheduled to sell some of their debt in order to stave off an inevitable credit rating cut. Both the Aussie and Kiwi Dollars declined this morning in response, with the AUD/USD trading at 1.0289, down by 0.238%. The Australian economy is feeling the pinch from the European recession and from the softening Chinese economy. Spain will sell some debt for 2015 and 2016 on Thursday, while Italy will step up to the trading block on Friday.

Gold surges yesterday

Gold rose exponentially yesterday, due mainly to a weaker USD. At its peak, gold was trading at 1645.65, its highest point since December 14th. Gold is also up this morning, along with silver, with the former trading a 1638.456 and the later at 29.930, an increase of 0.39%. Energy is down this morning with crude oil trading at 101.96, down 0.27% and natural gas trading at 2.889, down by 1.20%. Despite political turmoil between Iran and the West, oil is taking its cue from European financial instability.

Economic Colander Update

No major reports or statistics are scheduled for release today, with the exception of the Chinese CPI (Consumer Price Index). Tomorrow is a different story, with a whole slew of reports coming from America and the U.K. In the U.S., the Core Retail Sales, Retail Sales and Unemployment Claims will be released at 1:30pm GMT. In the U.K., the Asset Purchase Facility, Official Bank Rate and MPC Rate Statement will become available. The European Central Bank Press Conference will also be taking place tomorrow. This monthly press conference has a track record of causing market volatility. It starts at 1:30pm GMT.

Stocks on the rise

Indices are up this morning, with the DAX showing the greatest gain at 2.42% and trading at 6162.98. Yesterday, Wall Street reached a five month high, with the Dow Jones Industrial and the S&P 500 up by 0.56% and 0.84% by the end of closing. The CAC 40 and the U.K. FTSE were also up sharply bt 2.66% and 1.50%.

Trends Reverse…Slightly 17-05-2012

The Euro is up slightly against the greenback during early European trading on Thursday, but remains far below levels from two weeks ago. The EUR/USD is up 0.18% and trading at 1.2739 this morning, rebounding from a 0.10% decline during yesterday’s trading in the United States that saw the pair close the session at 1.2717. The Dollar is [...]

The Collapse of Oil Prices Continues 16-05-2012

Early trading on Wednesday saw a continuing trend of investor concern towards the Greek political crisis and a rush to the greenback. With the chance of Greece leaving the Eurozone more likely with each passing day, the Euro continues to struggle against the Dollar. The EUR/USD is down 0.11% in early European trading this morning, at [...]

European Uncertainty 15-05-2012

The U.S. Dollar was up against most major currencies on Monday, as investor uncertainty regarding the Greek political crisis continued to push investors towards the safe haven of the greenback. The Euro is up slightly at the beginning of the European trading session on Tuesday by 0.05%, sitting at 1.2828. The Euro has declines sharply [...]

Euro Falls Once Again 14-05-2012

Political uncertainty in Greece and mass protests in Spain has pushed the EUR/USD down 0.15% to 1.2897 during late Asian trading on Monday. In fact, the greenback was either steady or up against most major currencies as traders searched for a temporary safe haven in order to dodge uncertainty in the markets. The increased value of the [...]

Time Is Ticking For Greece 11-05-2012

The Euro is back on the decline during Asian trading on Friday, with the EUR/USD down 0.14% and trading at 1.2920. The pair continues to hover at around 1.3000 after the single currency took a major hit due to fears surrounding political instability in Greece and future fiscal policy in France. The pound is also down against the greenback [...]

Euro Declines Stop 10-05-2012

The Euro has rebounded slightly against the USD during Asian trading on Thursday after posting huge losses over the last several days. The EUR/USD is up 0.15% and trading at 1.2946. The majority of major currencies are also up against the greenback this morning, including the Pound, Swiss Franc and Australian Dollar. The Aussie posted [...]

Euro Decline Continues 09-05-2012

The beginning of trading on Wednesday continued the negative trend of the Euro and oil. The Euro continues to decline sharply, down 0.24% and trading at 1.2975. The EUR/USD broke through the 1.3000 barrier earlier this week after European elections in France and Greece cast a shadow over the future of the single currency. The Euro is also [...]

Declines Continue for Oil and Euro 08-05-2012

The Euro is down once again during late Asian trading on Monday, after suffering huge losses yesterday. The EUR/USD is down 0.15% and trading at 1.3032. The single currency did manage to recover somewhat during late trading yesterday, rebounding from a decline of 0.81% at the end of the Asian trading session. Investors continue to show [...]

Future of the Euro in Doubt? 07-05-2012

Two key election results in the European Union are threatening to undo the single currency. Francois Hollande is the new president of France, after defeating Nicolas Sarkozy by a small margin in the second round of elections. Hollande is the first socialist president in France in the last seventeen years. Many voters in France expressed [...]

Oil Prices Plummet 04-05-2012

Oil prices plummeted during the U.S. trading session on Thursday after European Central Bank President Mario Draghi expressed concern over future growth of the EU economy. The price of crude was down 2.48% and trading at 102.61 USD per barrel. Oil was also hit hard because Draghi claimed that ECB was not planning to increase liquidity in [...]

Go Back