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- Submitted Nov 2, 2011|From forexblog.oanda.com

It seems that any scrap of market confidence is met with a low blow from the extreme. Papandreou’s Government has blindsided the financial markets by calling a referendum on a supposedly agreed upon financial plan. The risk is that rejection by a ...
- Submitted Nov 1, 2011|From forexblog.oanda.com|6 comments

At first glance it is difficult to understand what could possibly have motivated Greek Prime Minister George Papandreou to announce a public referendum on the Greek debt deal. Any sense of stability that had been achieved by last week’s summit ...
- Submitted Nov 1, 2011|From forexblog.oanda.com|12 comments

It’s getting confusing, what “big figure” is the market trading on now? The euphoria following last weeks EU plan has quickly faded and then some, underlying that event risks to the EUR remain high. Greece is quickly becoming the “New” Argentina of ...
- Submitted Oct 31, 2011|From forexblog.oanda.com

The EUR and JPY took it on the chin from all quarters in the O/N session, but for two very different reasons. The EUR fell the most in a month outright, amid speculation that European leaders will struggle to “garner financial support for their ...
- Submitted Oct 29, 2011|From forexblog.oanda.com

The dollar is tired battered and bruised and certainly did not see the strength of EURO euphoria coming this week. In just a few short sessions “tail risk” price has been markedly reduced. Certain dealers will tell you that the market is putting the ...
- Submitted Oct 29, 2011|From forexblog.oanda.com|4 comments

Recent comments by Japanese Finance Minister Azumi suggest that the authorities have grown more concerned about JPY strength. Just look at how many time authorities have been on the wires this week trying to talk the currency down. New WWII record ...
- Submitted Oct 28, 2011|From forexblog.oanda.com

Jim Chanos, a U.S.-based hedge fund manager well-known for his negative outlook for China, told a television audience on Friday that China’s economy is about to enter a period of significant contraction. Chanos has long held the belief that the ...
- Submitted Oct 28, 2011|From forexblog.oanda.com

With the announcement earlier this week that a deal to help contain the Eurozone debt crisis was in the works, attention quickly shifted from Greece to Italy. Compared to Greece, Italy’s debt situation is only marginally better with a debt to GDP ...
- Submitted Oct 28, 2011|From forexblog.oanda.com

G10 currencies are trading in a well contained range after yesterday’s miraculous recovery amongst risk assets. The selling of the greenback does not seem to be trading in an overextended scenario in either position or price action. Most would have ...
- Submitted Oct 27, 2011|From forexblog.oanda.com

The markets this morning have rallied on European policy “clarity”. The EU Summit seems to have fulfilled market’s expectations. Euro leaders providing clarity on Greek PSI, guidance on how the EFSF will be leveraged, and bank recapitalization plans ...
- Submitted Oct 26, 2011|From forexblog.oanda.com|1 comment

Canadian Finance Minister Jim Flaherty told a press conference on Tuesday that despite uncertainty in the Eurozone and a slowing U.S. economy, he expects Canada will remain resistant to recession. Nevertheless, the Finance Minister noted that he is ...
- Submitted Oct 26, 2011|From forexblog.oanda.com|12 comments

Are we about to witness another gathering of conflicted regional interests that will not result in an actual plan? This belief has certainly forced more risk out of this market in the last 24-hours. The divergence in recent EU policy statements ...
- Submitted Oct 25, 2011|From forexblog.oanda.com|9 comments

Just one day before a summit of the Eurozone leaders where it is expected the details of the second attempt to save Greece will be finalized, Italy has announced it is unable to reach a consensus regarding its own austerity requirements. Among the ...
- Submitted Oct 25, 2011|From forexblog.oanda.com|12 comments

This current market movement is being fueled by “perception and optimism” and financed by US corporate earnings and constructive news from Europe. The market recognizes that Europe has finally developed a sense of urgency. This, after holding its ...
- Submitted Oct 24, 2011|From forexblog.oanda.com|1 comment

Risk edged higher over the weekend, but for how long? Market expects the Eurozone to announce significant measures Wednesday at bolstering the EU bailout fund. Some of this risk has been pared back this morning by the realism of weaker Euro economic ...
- Submitted Oct 21, 2011|From forexblog.oanda.com

Why have one when you can have two? With one summit looking like becoming two, are we any closer to the final solution? All this drama and he said she said is getting confusing. A matter of urgency is a prerequisite and so is perception. Europe is ...
- Submitted Oct 20, 2011|From forexblog.oanda.com|2 comments

Welcome to the new norm? Price action has been volatile again early in Europe. The headlines that the IMF was at odds with the EU had the EUR testing the morning lows. During most of the session, Middle-east demand has been lurking and the reason ...
- Submitted Oct 19, 2011|From forexblog.oanda.com|1 comment

The Euro seems resilient to bad news out of Europe. Despite the “mega” risk rally earlier this month, many still have not bought into the idea that Euro problems have been solved, and rightly so. It’s interesting that the currency pull back earlier ...
- Submitted Oct 18, 2011|From forexblog.oanda.com

The Bank of England and Governor Mervyn King face a desperate dilemma – allow the economy to continue its downward path, or attempt to boost growth through further quantitative easing. The catch of course is that with the promise of more “easy” ...
- Submitted Oct 18, 2011|From forexblog.oanda.com

There is no backing down from ‘this’ persistent EUR decline. The market risk premium that was aggressively applied last week feels in danger of giving it all up and then some. Sentiment remains vulnerable allowing event risk to dominate on a ...