EUR/CHF is currently a neutered trade as the floor of 1.2000 put in by SNB is still in effect. The data coming from Euro Zone marginally affects it. The Swiss economy is not as gung-ho as it was some time back, which means the data from Switzerland will also not impact it for some time. So the pair is left to…
The US economy has been on a tepid recovery after the biggest recession since World War II. Lack of strong fiscal policy response due to the divided US government has put most of the burden on the monetary policy. Federal Reserve under Chairman Ben Bernanke has taken various steps to ameliorate the economy. Recently, in…
Two thirds of August trading days are behind us but the month is not playing up to its reputation so far. Bucking the History: Stock Trader’s Almanac notes that over the past 61 years, August has been 10th best month for Dow Jones Industrial Average and NASDAQ or in other words, third worst. August is 9th best for…
European crisis has been raging for some time and last few weeks have been very hectic. It has been quite bearish for EUR/USD generally. However, some recent weekends have been much better for the currency pair. In the last few weekends there were some significant events or meetings or announcements, which had positive impact on…
Past few weeks have been quite brutal for the single currency of the eurozone against the greenback. By Memorial Day, EUR/USD had declined everyday in May except for two. Now it seems that the pair may be setting up for a bounce. Since mid-February, EUR/USD has been forming a descending triangle. The lower boundary line…
Despite an economy that is sinking deeper in recession, British Pound has done quite well against the euro. One of the causes is the uncertainty about eurozone due to the Greek crisis. As Greece grapples with her debt and insolvency issues, the number of alternatives available to her is decreasing. One alternative is that she…
Economist Paul Krugman recently gave an interview to German magazine Der Spiegel in which he argues that this is not the time to worry about debt and inflation. Here are some choice excerpts: On Greece leaving the euro zone: What happens if Greece leaves? Then you have again a bank run in other peripheral countries because they’ve set…
Greece is stuck between a rock and a hard place. Next month it will go to poll – again – to determine who will govern it. The choices are not easy and it is quite likely that the result may be another hung parliament just like the one after the last election on May 6th. Things are not…
Economist Nouriel Roubini believes that the Greek euro tragedy is nearing its final act and the country will exit the euro either this year or next year. He says that Greece is stuck in a vicious cycle of insolvency, lost competitiveness, external deficits, and ever-deepening depression and the all the solutions that might improve Greece’s competitiveness require…
Jean Paul Trichet has a bold idea to save the euro. He wants to give European politicians the power to declare a sovereign state – read Greece – bankrupt and take over its fiscal policy. No, this is not a news from Onion. Ex-President of ECB unfurled his plan ahead of the G8 summit at Camp David this weekend. According…
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