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Thread: Euro news

  1. #1
    Legendry Member milos's Avatar

    Euro news !!!

    During the Asian session Euro rose 0.03% against the dollar.It is reported relatively good results in the manufacturing and service sector in the euro zone. The euro zone still reduce purchasing managers index in the both manufacturing and services were better than forecast.Euro is also supported with good economic data. German Business Climate is 105.4.It is higher than expected.This index is based on the survey of manufactures,builders,wholesalers and retailers. German Consumer Climate is 6.5.It is higher than expected and it's measured consumer confidence in economic activity,personal financial situation,future economic condition and major purchase.

  2. #2
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by milos View Post
    During the Asian session Euro rose 0.03% against the dollar.It is reported relatively good results in the manufacturing and service sector in the euro zone. The euro zone still reduce purchasing managers index in the both manufacturing and services were better than forecast.Euro is also supported with good economic data. German Business Climate is 105.4.It is higher than expected.This index is based on the survey of manufactures,builders,wholesalers and retailers. German Consumer Climate is 6.5.It is higher than expected and it's measured consumer confidence in economic activity,personal financial situation,future economic condition and major purchase.
    Draghi has been predicting a second half rebound in the EU led by Germany for many months, maybe it has started. If so it will help world equity prices too. . .

  3. #3
    Legendry Member milos's Avatar
    Quote Originally Posted by Michael Hodges View Post
    Draghi has been predicting a second half rebound in the EU led by Germany for many months, maybe it has started. If so it will help world equity prices too. . .
    According to the Office of National Statistics Germany's GDP in Germany grew by 0.1% during the first quarter in line with an expectation.On a annual basis though there was a decline of 1.4% in the morning the euro rose against the dollar 0.25%. The common currency has increased by a large increased in the past seven weeks in the business climate in Germany.Most analyst did not did not expect a change.

  4. #4
    Legendry Member milos's Avatar
    More than 2500 people blocked the entrance of the headquarters of the European Central Bank in Frankfurt to protest the manner in which European leaders threat the crisis in EU.They are carried signs saying"Humanity before profit". Government of the euro zone countries are trying to cope with high debt.EU countries burdened by heavy debt decreased spending and increased taxes,which caused a recession across the euro zone,while many families broke into debt or lost their homes after the housing bubble burst in the property market.German economy has been relatively resilient to the crisis,however,recent data show that even it is not immune.

  5. #5
    Legendry Member milos's Avatar
    German Central Bank Governor of the Bundesbank,Jens Weidman ,said the euro zone should consider bankruptcy as an option.Economists and experts have been concerned long about so-called "moral hazard" of establishing a system of rescue.However,apart from such a system could reassure markets,it would also encourage borrowers and lenders to take larger risk because they expect that they might be saved.Weak banks have forced some euro zone to save it's creditors.which caused an increase in debt burden of these countries.Euro zone,according to the estimate of this year should experience economic decline pf 0.6%.which is in contrast with the favorable trends in countries like the U.S. and Japan.

  6. #6
    Specialist Member marvel's Avatar
    Hi milos,

    This week is starting with relatively positive attitude on all major markets, but everything you said will be heavily negative for the euro in the long term. The so called moral hazard will always exist till the bailout programs are on the table. The problem is that still nobody has idea how to overcome economic depressions without such stimulus programs. They are of course not very good because most of the money goes exactly to those banks and funds who take the excessive risks and have to default, but they are actually saved by all the ordinary people. We don’t have other instrument to prevent severe crisis, if we have such we probably will never use again bailing out junk assets from the central banks, but this is the only way which is proven to work and to return back the economy to growth.

  7. #7
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by marvel View Post
    Hi milos,

    This week is starting with relatively positive attitude on all major markets, but everything you said will be heavily negative for the euro in the long term. The so called moral hazard will always exist till the bailout programs are on the table. The problem is that still nobody has idea how to overcome economic depressions without such stimulus programs. They are of course not very good because most of the money goes exactly to those banks and funds who take the excessive risks and have to default, but they are actually saved by all the ordinary people. We don’t have other instrument to prevent severe crisis, if we have such we probably will never use again bailing out junk assets from the central banks, but this is the only way which is proven to work and to return back the economy to growth.
    unfortunately you are right about bail out funds ending up in the hands of the big institutions in the end. it is these banks that need to be flush so that they can begin to lend to business and ordinary people and make them feel that the system is safe again.

  8. #8
    Legendry Member milos's Avatar
    After rise of the euro against the U.S. dollar caused by bad data in the manufacturing sector in America the Euro during Asian trading session came to a small correction and fell.Purchasing manager index of manufacturing fell for the first time in six months.Worse than expected data have weakened the U.S. currency on the speculation of the Federal Reserve may not rush to reduce monetary incentives program.On the other hand manufacturing PMI in the euro zone has increased but is still in the zone of contraction which has further strengthened the European currency.After the fall Euro managed to recover somewhat during the European trading session against the U.S.dollar and achieve growth of 0.07%. In addition to the many problems in the euro zone inflation is not one of them.The cost of raw material fell 0.6% in April,the biggest drop since July 2009.And Energy price dropped by 2.6% in April which is also the biggest drop since 2009.Production rate s have fallen in the largest economies of the monetary union.In Germany there was even a drop of 0.2% for the third month in a row, while in France there was a decline of 0.9%. The number of application of the unemployed in Spain fell for the third month in a row in May to 98300,bringing mild relief when it comes to the labor market.However,the improvement was mainly due to the seasonal increase in employment in the tourism sector.The number of officially unemployed is now at 4981000.ECB is still divided for further cut rate.Euro is to strong for current reforms in euro zone.It must be something done

  9. #9
    Legendry Member milos's Avatar
    The euro in the morning moving quite stable against the U.S. dollar in anticipation of the report on employment in the United States. Good results in the trade balance in Germany and France was further supported by the European currency. According to official reports released today in Germany's trade balance unexpectedly rose from 17.6 billion to 17.7 billion. The trade balance in France remained at the same level as expected. And industrial production in Germany has achieved growth and the largest in the past year. Yet today, the Bundesbank reduced its growth forecast of the economy and said the recovery will be gradual over the years. Growth forecasts have been reduced from 0.4% to 0.3% in 2013 while in 2014 is expected to grow by 1.5%. In Greece, it was reported that GDP fell 5.6% in the first quarter compared to the same period last year.

  10. #10
    Legendry Member milos's Avatar
    The euro strengthened against the U.S. dollar after the release of data on German industrial production, as investors focused on the information about the state of the US labor market that would later published.Forex pair EURUSD trades recorded during the previous peak at 1.3269 and subsequently consolidated at 1.3254.Euro found after the release of data that showed that German industrial production rose in May to 1.8% from 1.2% in the previous month,while economist had expected a decrease of 0.2%. Separate report showed that German's trade balance unexpectedly rose in May to 17.7 billion euro.Against the pound the euro rose slightly,but fell versus the franc and the yen.EURGBP rose to 0.8513 and EURJPY dropped to 126,79.EURNZD rose 1.6628,EURCAD rose to 1.3536 and EURAUD rose to 1.3924.

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