Insights

 

FX Daily
August 26, 2014 Posted by

French President Hollande’s firing of industry minister Arnaud Montebourg for publicly criticizing austerity measures underscores the political crisis confronting the President as he tries to strike a balance between demands at home to revive a struggling economy and pressure from the EU to reduce deficits. Hollande’s approval rating is just 17% and unemployment is at a record high of 10.1%. It is under this backdrop that Hollande’s pledged EUR 50 billion in spending cuts over 3 years has been met with resistance. Montebourg’s critique of austerity referred Hollande’s measures as “slavish” and “dogmatic.”

Read More
0 Comments | Join the Discussion

FX Daily
August 25, 2014 Posted by
ECB President Mario Draghi moved the markets, with bonds and stocks rallying and the EUR weakening, following comments he made at the central-banking conference in Jackson Hole on August 22nd that imply the ECB is contemplating quantitative easing as a means to avoid deflation. Draghi warned that bets by investors on prices have “exhibited significant declines”.
Read More
0 Comments | Join the Discussion

FX Daily
July 10, 2014 Posted by
Global equity markets are under pressure on concerns that Portugal is experiencing financial stress, with Portuguese 10 year notes yielding 20 basis points more than yesterday. U.S. treasuries, gold, and the JPY are rallying as safe havens.
Read More
0 Comments | Join the Discussion

FX Daily
July 09, 2014 Posted by

The markets are awaiting the release of the FOMC minutes today for insights into the Fed’s sentiment on the economy and the timing of the first rate hike. In June the FOMC updated forecasts for unemployment, inflation, and the Fed Funds rate that indicated members were becoming more optimistic about the U.S. economic outlook.

Read More
0 Comments | Join the Discussion

FX Daily
July 08, 2014 Posted by
Greece resisted calls from the ECB to undertake a third bailout as Draghi warned that the pace of the nation’s economic fixes has slowed. According to reporters in Brussels, Greece is ruling out additional aid, which would come with new conditions, after the current rescue package comes to an end.
Read More
0 Comments | Join the Discussion

FX Daily
July 07, 2014 Posted by
Global equities are trading lower today and yields on U.S. treasuries are trading higher as concern mounts about the timing of the Fed’s first rate hike.  U.S. inflation figures have crept higher, hitting the Fed’s 2% target, and the unemployment has fallen to 6.1%, below the Fed’s initial target of 6.5%.
Read More
0 Comments | Join the Discussion

FX Daily
June 06, 2014 Posted by
Despite the ECB having enacted unprecedented easing measures yesterday, the Euro has held up very well in trading. Normally currencies sell off in the wake of significant monetary stimulus, which negative deposit rates would surely constitute.
Read More
0 Comments | Join the Discussion

FX Daily
June 05, 2014 Posted by

The ECB cut its deposit rate to minus .1% today in an effort to boost economic growth and avert the threat of deflation in the Euro region. There have been few instances of negative deposit rates throughout history, and they have generally been short lived.

Read More
0 Comments | Join the Discussion