Dow Jones Forex Focus
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22/05/2012
Eurobonds Likely To Stay Cold And Unserved In Their Dish. By Nicholas HastingsEurobonds will be on the menu at dinner in Brussels on Wednesday night. But, to the disappointment of many, German disapproval means they will probably be left cold and unserved in their dish. There is nothing wrong with the eurobonds or with the new French president's fondness for them. In fact, they are probably just the diet many peripheral euro-zone debtors need to resolve their funding problems. Eurobonds such as these would be guaranteed by the euro zone as a whole and allow these countries to raise money at a much reduced price.
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21/05/2012
Sterling Gets Trapped In The Euro Vortex. By Nicholas Hastings-Like Dorothy, sterling appears to have been swept away by a tornado. And this one is called the euro. Rather than being viewed as a safe haven for investors seeking refuge from the problems of the euro zone as it has been for many months, sterling is now being closely allied with the single currency and is falling in tandem with it.
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18/05/2012
Sterling Gets Trapped In The Euro Vortex. By Nicholas HastingsLike Dorothy, sterling appears to have been swept away by a tornado. And this one is called the euro. Rather than being viewed as a safe haven for investors seeking refuge from the problems of the euro zone as it has been for many months, sterling is now being closely allied with the single currency and is falling in tandem with it. The shift in investor perception is hardly surprising.
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17/05/2012
Greek Tremors Will Shake Global Economic Growth. By Nicholas HastingsThe world's four largest economies all grew in the first quarter of this year. But that doesn't mean the global economy is immune to a Greek meltdown. On the contrary, economic expansion in the U.S., China, Germany and Japan looks decidedly fragile and highly vulnerable if Greece exits the euro zone. Of course, Germany is the most obvious casualty, as it and other euro zone economies would suffer from the risk of contagion, a likely jolt in European financial markets and speculation the euro itself won't survive.
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16/05/2012
Watching The Euro's Firewall Start to Burn. By Nicholas HastingsFirewall? What firewall? Euro zone investors may well ask, as yield spreads between Spanish and German bonds rise to a new record over 500 basis points. The cost of funding Portuguese, Italian and even French debt also continues to increase inexorably as the international investment community remains unconvinced that the so-called firewall of funds from the European Union will halt contagion from Greece.
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15/05/2012
Dollar Prospects Get Even Brighter. By Nicholas Hastings.Dollar bulls should be licking their lips. The prospects for the U.S. currency haven't looked so good for quite some time. The euro, which has spent many months largely ignoring the euro zone debt crisis, is now on the slide as Greece edges closer to doing the unthinkable--bringing back the drachma. The yen, which has long been an alternative or even superior safe haven to the dollar, is likely to lose favor after the Japanese prime minister vowed to halt its rise.
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14/05/2012
Dollar Prospects Get Even Brighter. By Nicholas HastingsDollar bulls should be licking their lips. The prospects for the U.S. currency haven't looked so good for quite some time. The euro, which has spent many months largely ignoring the euro zone debt crisis, is now on the slide as Greece edges closer to doing the unthinkable--bringing back the drachma. The yen, which has long been an alternative or even superior safe haven to the dollar, is likely to lose favor after the Japanese prime minister vowed to halt its rise.
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11/05/2012
Iron, Not Lead, Could Sink The Aussie Now. By Nicholas HastingsIron ore exports may once have helped to keep the Australian dollar nice and strong. But, now with global demand falling and with exports into China failing to live up to expectations, the Aussie will find its recent decline accelerating rapidly. The Aussie has been on the slide since late February, hurt by rising evidence that the global economy is slowing and suffering from a falling appetite for high risk assets. The currency's decline has, however, been tempered by a relatively strong performance of the Australian economy itself.
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10/05/2012
Iron, Not Lead, Could Sink The Aussie Now. By Nicholas HastingsIron ore exports may once have helped to keep the Australian dollar nice and strong. But, now with global demand falling and with exports into China failing to live up to expectations, the Aussie will find its recent decline accelerating rapidly. The Aussie has been on the slide since late February, hurt by rising evidence that the global economy is slowing and suffering from a falling appetite for high risk assets. The currency's decline has, however, been tempered by a relatively strong performance of the Australian economy itself.
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09/05/2012
Soft Dollar To Cushion Euro's Fall. By Nicholas HastingsThe latest chapter of the euro zone debt crisis will doubtlessly knock the euro lower, but the single currency's decline will probably prove more gentle than expected. And that is all because of the dollar.
