euro

rumblings in the euro land

Unpleasant rumblings in Euro land

James Alexander | As some debate raged in the corridors of the ECB about both Draghi’s successor and over when and how to end the QE for the EUR, the common currency remained strong, helping keep the USD weak.


Peter Bofinger

“Germany benefits from the euro, but acts as if it doesn’t exist

“In principal, the euro is a good idea. The aim is to create a big economic space without any monetary barriers, like the US. But a common space implies that member states are prepared to take each other into consideration as far as their economic, financial and wage policies are concerned,” says Peter Bofinger, one of the five ‘wise men’ who make up the German Council of Economic Experts.




Renminbi

China, the SDR And A Less Eurocentric World

Marc Chandler via Caixin | It is official. The yuan will be included in the International Monetary Fund’s special drawing rights (SDR). The 10.4 percent share is a bit more than I expected, but less than the 14 to 16 percent the IMF’s staff intimated a few months ago. This is a significant event, even if there is no short-term market opportunity.


inflacion-precios1

Common Inflation, The Only Reasonable Way Out For The Eurozone

Countries in the North don’t even want to talk about creating more inflation to help those in the South. Why should we, they say, if they are the debtors? Could they be persuaded that it is in their interests, given that the alternative could be default and the collapse of the eurzone economy and the euro? For the time being, they have allowed the ECB to work on moving away from zero inflation, but not beyond the 2% limit. And even this limit is not expected to be reached until 2017.


PMI

March Flash PMI: Germany leads the upside surprise

LONDON | By Apolline Menut via Barclays | Euro area “flash” composite PMIs came in stronger than expected, almost reaching a four-year high at 54.1 (+0.8 points). The rise was primarily driven by a surge in manufacturing output (+1.4 points to 53.5), while confidence continued to improve in the services sector (+0.6 points to 54.3).


tightening-greek-belt-austerity-financial-crisis

“Grexit risk cut to 25%”

MADRID, February 23, 2015 | By Sean Duffy | Friday´s deal was a relief for all involved, yet it remains to be seen if a frantic weekend of number cruncing from Greek officials will meet the strict criteria outlined in the agreement. German bank Berenberg cut the chances of a Grexit to 25% from 35% on Monday.



No Picture

Where now for the euro?

MADRID | By Sean Duffy | The euro hit a fresh nine-year low on Thursday after the publication of a letter from Mario Draghi which indicated that the central bank would likely purchase sovereign bonds in a bid to ward off a deflationary bout which is holding back growth on the continent. The euro was trading at $ 1.17540 against the greenback on Thursday.  Friday saw a recovery to $ 1.18177. The single currency is currently hovering around levels seen back when the currency was launched in 2002, at €1.16.