The Greenback is gaining all the time in the current environment of increased risk aversion and this is seen in the rise of USD speculative positioning over recent weeks. One would think there is still ample scope for risk aversion to deepen but what does this mean for the Dollar? The USD index is currently...
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The US dollar continued to be heavily influenced by events far from its own shores, as European officials failed last week to offer a plan to halt the region’s debt crisis. Despite this, the dollar actually lost 1.5 cents versus the euro on the week, the EUR/USD spreads closing at 1.38 – but it is...
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Last night, the Federal Reserve announced its latest efforts to stimulate their ailing economy with two new “twists” yet stopped short of declaring an additional phase of quantitative easing. The Fed will buy $400bn worth of long-term Treasury securities by the end of June next year, funded by selling the same amount in short-term...
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Today we get to see if any other members of the MPC have joined Adam Posen, long time advocate of further easing by the Bank of England, in calling for another bout of QE. The timing of the BOE minutes, coming after the IMF announcement yesterday, could not be better for the Government who...
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The Dollar index remains strong, however it seems doubtful that the Greenback is being bought on its own virtues but rather on weaknesses in Europe. Nevertheless, dollar sentiment looks to have turned a corner for the first time since last summer as long positions have risen, suggesting a change in attitude for the currency. Obviously...
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European stock markets posted a second day of consecutive gains on Wednesday as investors continued to bargain hunt in the heavyweight resources sector, whilst European banks were broadly positive, apart from the volatile French banks whose credit rating was downgraded in a widely expected move by Moody’s. The FTSE 100 rose 1% on the day,...
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