Welcome, Guest Login | Signup | Portfolio | Bookmark | Contact
Markets

Symbol Name
Click for Symbol Help




Euro Propped Up By Hopes For ‘Bank Union,’ All Eyes On ECB

TheStreet.com - Jun 4, 2012

The Euro climbed to a high of 1.2465 as Spanish Prime Minister Mariano Rajoy called for a ‘banking union’ in Europe, and it seems as though the EU will increase its push to recapitalize the banking system through the permanent bailout fund as the group struggles to restore investor confidence. At the same time, French Finance Minister Pierre Moscovici voiced his support to increase the scope of the ESM, stating that it may be up for discussion at the next EU Summit on June 28-29, while European Central Bank board member Ewald Nowotny said the current move is the ‘right’ idea, ‘but will need significant time to be realized.’

In response, a spokesman for German Chancellor Angela Merkel argued that ‘it’s up to national governments to decide whether they want to avail themselves of aid from the backstop and accept the conditions linked to it,’ and we are likely to see increased pressure on the European Central Bank to ease policy further as the governments operating under the fixed-exchange rate system become increasingly reliant on monetary support. Meanwhile, Portugal announced it will inject more than EUR 6.65B into its three-largest banks amid the ongoing turmoil in the financial system, but the growing threat for contagion will continue to dampen the outlook for the region as European policy makers try to buy more time. Although the ECB is widely expected to keep the benchmark interest rate at 1.00% in June, market participants are pricing a 17% chance for a 25bp rate cut later this week, and we should see the Governing Council carry its easing cycle into the second-half of the year as the fundamental outlook for the region continues to deteriorate. As the relative strength index on the EURUSD climbs back from oversold territory, the pair looks poised for a correction, but we are waiting to see a break and a close above the 10-Day SMA (1.2497) to see the rebound gather pace.

Read Full Article from TheStreet.com

- Posted: 2012-06-04 09:03:34


 More Stock Investor Place Top Stories  
Anglo platinum arm sheds 14,000 jobs, risking unrest
Apple falls below $500
US retail sales rose 0.5 percent in December, led by autos, furniture and clothing sales
Recovery in U.S. Saving 8 Million Underwater Homeowners
Facebook shares rise in buildup to mystery event, earnings

 Stock Investor Place Top Stories Archive
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008















Featured Companies | My Place | News | Markets | Big Board | Blogs | Products & Services

Copyright 2019 Stock Investor Place Inc. All Rights Reserved.
Disclaimer - Terms of Use - Privacy Policy - Advertise