FOREX MARKET

Singapore GIC: Risk Of Economic Stagnation, Then Inflation

noreply@blogger.com (fun) — Sat, 14 Nov 2009 10:40:00 +0000

Singapore GIC: Risk Of Economic Stagnation, Then Inflation

SINGAPORE -(Dow Jones)- The world faces the risk of economic stagnation as it pulls out of steep economic downturn, but this could be followed by inflation if policymakers aren't careful, Singapore's sovereign wealth fund said Saturday.

"We appear to have avoided a global depression and are now in a global recovery," which will extend into next year, Tony Tan, deputy chairman of Government of Singapore Investment Corp., told a panel during the annual summit of the Asia-Pacific Economic Cooperation forum in Singapore.

"I expect higher stagnation risk in the medium term to be followed by higher inflation risk after that," Tan said.

"Over the next one to three years, weak growth and excess capacity will be strongly disinflationary," he said. "However, beyond that, over the next five to 10 years, policy errors or political pressure could lead central banks to accommodate higher inflation."

Countries that have racked up little debt, especially in Asia and parts of Latin America, will recover strongly and "in the short term, the bounce could surprise on the upside," Tan said. But activity in "over-leveraged developed economies," especially consumption in the U.S. and U.K., will likely not be as robust as in previous recoveries, he said.

More broadly, "Over the next decade, it looks like economic, political and market risks are going to be higher than the last 20 years before the crisis," Tan said.

"Over time the rise of (emerging markets)--especially China, India and Russia--could, together with competition for limited natural resources, lead to higher geopolitical risks," he said.

GIC is the world's fourth-largest sovereign wealth fund in terms of money managed, according to Deutsche Bank

-By P.R. Venkat, Dow Jones Newswires; +65 64154 152; venkat.pr@dowjones.com

Brazilian Real Ends Losing Streak on Global Optimism

noreply@blogger.com (fun) — Sat, 14 Nov 2009 10:39:00 +0000

After speculations suggesting that the Brazilian currency will suffer further interventions from the national central bank to stop is rally, the real had a negative performance this week that only ended today after global optimism rose attractiveness for assets in emergent markets.

The Brazilian real managed to rise more than 1 percent versus the U.S. before the end of today’s session as positive data in Europe and Asia forced up demand for commodities and rose risk appetite, bringing investors to inject capital in Brazil despite speculations that further measures to stop the currency’s rally will be taken.

USD/BRL closed at 1.7269 from an opening rate of 1.7345.

Mexico's Stocks End Higher, Peso Gains Ahead Of Long Weekend

noreply@blogger.com (fun) — Sat, 14 Nov 2009 10:39:00 +0000

MEXICO CITY (Dow Jones)--Mexico's stocks closed higher Friday ahead of a long weekend, rising for the eighth session in the past nine as U.S. equities gained with the help of positive consumer stocks.

The local stock market's IPC index of leading issues rose 0.8%, or 242.24 points, to 31002.09, resuming an upward path after a brief respite the previous session that pulled the index off a 17-month high. Volume was a moderate 141.1 million shares worth 4.04 billion pesos ($310 million).

Retailer Wal-Mart de Mexico (WMMVY, WALMEX.MX) V shares rose 2.8% to MXN51.56, Soriana (SORIANA.MX) B shares rose 0.5% to MXN32.45, and Comercial Mexicana (COMERCI.MX) UBC shares jumped 10% to MXN11.24.

Comercial Mexicana, which is in the process of negotiating a debt restructuring with derivatives counterparties and other creditors, attributed the gains to "market conditions" in a filing with the exchange.

The peso strengthened against the dollar and was quoted closing in Mexico City at MXN13.0495, compared with MXN13.1915 at Thursday's close and MXN13.4175 a week ago.

A local currency trader said the weaker dollar and corporate peso demand for tax payments due next Tuesday contributed to the currency's gains.

Mexican markets will be closed Monday for the Revolution Day holiday.

Expectations that Congress will wrap up the spending side of the 2010 budget at the weekend also helped the peso, the trader added.

Mexico's budget process has injected volatility into the exchange market as participants weigh the possibility of one or more ratings agencies downgrading the country's sovereign credit rating, without putting its investment grade at risk.

Both Standard & Poor's and Fitch Ratings have a negative outlook for Mexico, and could make a decision once the budget is completed. Most of the concern in the market was over the revenue side of the budget, which was wrapped up at the end of October with Congress improving a number of tax increases.

The currency trader said Mexican interest rates, while low, still allow for some carry trade since they are higher than those in the U.S.

The yield on 20-year government bonds due 2029 slipped 2 basis points to 8.42%, and the yield on bonds maturing in 2018 was flat at 7.86%.

BBVA Bancomer said in a report that uncertainty about the sovereign rating is holding the peso back from making further gains, generating some caution in inflows, although recent data show foreign investors continue to add local bonds to their positions.

Chilean Peso Posts Biggest Gains Since June

noreply@blogger.com (fun) — Sat, 14 Nov 2009 10:21:00 +0000

The Chilean peso had the highest weekly rise in 5 months after the national central bank did not announce measures to halt the currency’s rally, leaving behind speculations that a government intervention will shun investors from the South American nation.

After a Chilean government interest rate policy statement that did not mention that a strong peso could jeopardize the economic recovery in the country, the Chilean currency managed to extend its gains to higher levels making this week to be the sharpest 5 day winning streak since June.

USD/CLP closed the week at 502.05 from an opening rate in Friday of 507.45.

British Pound High on Giant Airlines Fusion

noreply@blogger.com (fun) — Sat, 14 Nov 2009 10:18:00 +0000

The British pound had an excellent performance in the beginning of this Friday’s session as talks that the biggest airline in the country will merge another European giant in the sector brought optimism to London equities markets making the pound to benefit of a positive scenario.

After British Airways Plc and Ibreas Lines Aereas de Espana SA, two of the biggest airlines in Europe decided to merge, the pound headed to a third straight winning week versus the U.S. dollar and gained terrain versus the euro, which according to some speculations could reach parity with the pound in the mid-term future. An optimism tone today in Britain regarding the economic recovery that is coming slower in the country than in other countries in Europe provided support for the FTSE 100 INDEX to post a second week of consecutive gains, giving a breather for the pound which is finally having a more sustained growth these past weeks.

The economic recovery in Britain is finally affecting markets sentiment, the fusion of 2 giant airline groups is an evidence that other merges can follow as long as the economy continues to grow, which is definitely favorable not only for the British currency, but also stocks in London, which have been last attractive than stocks in other European economic centers like Paris or Frankfurt.

EUR/GBP traded at 0.8915 as of 13:27 GMT from a previous rate of 0.9017 in the intraday comparison. GBP/USD traded at 1.6682 from 1.6545 yesterday.

Swedish September Retail Sales +0.2% On Month

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:37:00 +0000

Swedish September Retail Sales +0.2% On Month

The following is a press release from Statistiska Centralbyran, or SCB, the Swedish central government authority for official statistics.

STOCKHOLM--Retail trade sales increased by 0.2% in September compared to August, seasonally adjusted figures. Compared to September 2008, the retail trade sales increased by 2.7%.

Retail trade for mostly food increased 2.7% compared to September 2008 and retail trade for mostly durables increased by 2.9%.

Statistics Sweden Web site: www.scb.se

DATA SNAP: Spain Sep Retail Sales -3.4% On Yr Vs -4% In Aug

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:37:00 +0000

MADRID (Dow Jones)--Spanish retail sales continued to fall in September, Spain's National Statistics Institute said Wednesday, as high unemployment weighs on consumer spending.

Spanish retail sales fell 3.4% on the year earlier in September after falling by 4% on the year in August and by 4.6% on the year in July, the INE said in a statement.

In calendar-adjusted terms, retail sales also fell by 3.4% in September.

Spanish consumer spending has been undermined by rapidly rising unemployment and declining consumer confidence as the country's ailing construction industry sheds hundreds of thousands of jobs.

INE Web site: www.ine.es

-By Jonathan House, Dow Jones Newswires; +34 91 395 8121; jonathan.house@dowjones.com

Forex: EUR/USD will remain offered below 1.4925/50, targeting 1.4588/36 - Commerzbank

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:37:00 +0000

FXstreet.com (Barcelona) - Euro retreat from 1.5060 high has extended on Tuesday to 1.4770 low and the Euro has bounced higher, reaching levels above 1.4800, although, according to Karen Jones, the pair remains on the downside, targeting 1.4588/36 area.

For today Jones foresees Euro recoveries to cap at 1.4925/50: "EUR/USD will remain offered intraday below 1.4925/50 - target 1.4588/36 (55 day ma and uptrend) we look for this to hold and provoke recovery."

Vietnam Oct Coal Output Estimated 3.35M Tons; Down 13% On Year

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:36:00 +0000

Vietnam Oct Coal Output Estimated 3.35M Tons; Down 13% On Year

HANOI (Dow Jones)--Vietnam's coal production in October is estimated to have fallen 13% from the same month last year to 3.35 million metric tons, the General Statistics Office said Wednesday.

The country produced 2.877 million tons in September, according to revised GSO data.

In the January-October period, the country produced an estimated 34.916 million tons, up 4.2% compared with the same period last year, the GSO said.

Electricity output in October rose 17% from a year earlier to 7.5 billion kilowatt-hours, the GSO said. In September, Vietnam produced 10 billion kWh of electricity.

In the January-October period, Vietnam produced 69.7 billion kWh, up 12.3% from a year earlier.

DATA SNAP: German Saxony Oct CPI +0.1% MM, -0.1% YY

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:36:00 +0000

FRANKFURT (Dow Jones)--Consumer prices in the German state of Saxony, the first state to release inflation data for October, edged up in October from the previous month, but the overall subdued level of the index still doesn't signal any immediate acceleration in inflation.

Consumer prices rose 0.1% on the month and declined 0.1% on the year, data from the state statistics office showed Wednesday.

Prices for food and household energy continued to exert downward pressure, the data showed. Food and alcohol-free beverage prices fell 0.3% on the month and declined 3.4% on the year, while household energy prices fell 0.2% on the month and were down 6.8% on the year earlier.

In September consumer prices in Saxony fell 0.3% on both monthly and annual terms.

Five other German states will publish inflation data throughout the day Wednesday before the Federal Statistics Office publishes pan-German inflation figures.

Economists in a Dow Jones Newswires survey forecast steady prices on the month and a 0.1% decline on the year.

Web site: www.statistik.sachsen.de

Pound Extend Gains on Retail Sales

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:35:00 +0000

Speculations that retail sales would post another month of gains were confirmed providing support for the pound to regain terrain versus the euro and several other currencies, changing the negative outlook for the British currency to a better trajectory.

The pound gained versus most of 16 traded currencies as retail sales in the U.K. touched the highest level in 2 years in October, bringing confidence back towards pound-priced assets, after rather turbulent weeks that shunned away investors from the British currency in foreign-exchange markets.

EUR/GBP traded at 0.9039 as of 21:36 GMT from a previous rate of 0.9118 in the intraday.

Sweden’s Krona Down Further on Economic Outlook

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:34:00 +0000

The Swedish currency has been one of the biggest losers in the European currency market as producer prices declined again in September, raising concerns towards the economic recovery in the country.

Since RiksBank affirmed that interest rates in Sweden will continue at record low levels to stimulate the economic growth in the Nordic country, the krona has been having negative sessions which aggravated today after producer prices fell in September, evidencing the fragility of the Swedish economy.

USD/SEK closed today at 6.9705 from an opening rate of 6.8691.

Canadian Dollar Strengthens on Decline Speculations

noreply@blogger.com (fun) — Wed, 28 Oct 2009 08:34:00 +0000

The Canadian dollar had the first session of recovery versus the greenback and several other major currencies after traders speculated that the current losing streak was not reflecting the present status of the Canadian economy, which is being one of the most resilient among wealthy nations.

Even if BANK OF CANADA policy makers are constantly stressing on the fact that loonie rates should go down to ensure a fast recovery for the Canadian economy, the loonie gained today after several days of negative performance, after investors interpreted BOC statements as not-so-relevant compared to fundamental data regarding the Canadian economy during the past quarter, which is indicating a solid and resilient economy. The loonie gained today versus almost all major traded currencies except the yen, which gained significantly as investors opted for safety in a day of bearish performance in equities and commodities markets.

Analysts agree that even if policy makers are affecting the loonie’s perform in the short-term, the sentiment towards the Canadian currency remains very positive, as it’s back by crude oil rates, one of the main Canadian exports to the U.S., as also on the North American national economic fundamentals, which are better than most economic regions throughout the world.

USD/CAD traded at 1.0647 as of 20:43 GMT from 1.0716 hours earlier.

Colombia IGBC Stock Index Rises On Expectations Of Lower Rates

noreply@blogger.com (fun) — Sun, 18 Oct 2009 19:23:00 +0000

Colombia IGBC Stock Index Rises On Expectations Of Lower Rates

BOGOTA (Dow Jones)--The Colombian stock index rose Friday on investors' expectations the central bank may further cut interest rates in a bid to slow the peso appreciation.

The benchmark IGBC stock index rose 0.7% to 10,942.50 points.

"Investors bought stocks as some of them expect the country's central bank may cut interest rates," said Cesar Tovar, market analyst with local brokerage Nacional de Valores.

Lower interest rates make companies' financial costs fall.

On Thursday evening, Colombian Finance Minister Oscar Ivan Zuluaga said the central bank will evaluate whether to start buying dollars on the spot market to tame the appreciation of the peso.

He said the bank will evaluate taking other measures.

Shares of Grupo de Inversiones Suramericana SA (GRUPOSURA.BO) rose 1.8% to 23,200 Colombian pesos ($12.58).

Shares of state-controlled telephone company Empresa de Telecomunicaciones de Bogota SA (ETB.BO), or ETB, rose 3.6% to COP901.

The Colombian peso strengthened to 1,843.5 pesos to the dollar, from COP1,846 on Thursday. The yield on the benchmark peso-denominated government bond maturing in 2020 fell to 8.603% from 8.748% on Thursday.

Argentina Sep Indus Output -10.5% On Yr, +1.1% On Mo - OJF

noreply@blogger.com (fun) — Sun, 18 Oct 2009 19:21:00 +0000

Argentina Sep Indus Output -10.5% On Yr, +1.1% On Mo - OJF

BUENOS AIRES (Dow Jones)--Argentina's industrial output fell sharply in September on the year, indicating that the an economic recovery is still a ways off.

Industrial production fell 10.5% from the same month a year earlier but rose 1.1% on the month, the think tank Orlando J Ferreres & Asociados, or OJF, reported Friday.

Year-on-year output has now declined each month for the past year, according to OJF. That puts accumulated January through September output down 9.5% from a year earlier.

Still, September's increase in the month-on-month data was the third of its kind in a row, indicating that the industry's doldrums seem to have bottomed out.

OJF said results for the rest of the year will likely improve because they'll be compared with data from late 2008, when the global financial crisis was just starting to have an impact on Argentina.

Moreover, a solid recovery in Brazil, Argentina's top trade partner, as well as a "calmer financial situation," should help the sector through next year, OJF said.

The think tank's estimates coincide with other private sector estimates that indicate output has fallen sharply since the beginning of the global crisis.

But the data clash with official government figures that show only a minor slowdown in production.

The national statistics institute, Indec, will release official industrial output data on October 23.

Indec last reported that August output declined 1.7% on the year but was up 0.6% on the month.

Economists here routinely discard the reliability of official statistics, saying the data are tainted.

Government officials deny the charges.

Forex: USD/CHF ends week below 1.0200

noreply@blogger.com (fun) — Sun, 18 Oct 2009 19:20:00 +0000

FXstreet.com (Córdoba) – Despite falling on Friday, the Swiss Franc ended the week with sharp gains against the Dollar. USD/CHF finished below 1.0200 but far from intra-week lows that lie at 1.0117 (15-month low). The pair has fallen in 5 out of the last 6 weeks. USD/CHF is still under pressure and the downside bias has a strong support at a downtrend line in daily charts. On the upside has a key resistance level at 1.0230/50, a break above could send it higher.

Against Cable, the Swiss fell sharply on Friday. GBP/CHF extended the rally and finished above 1.6600 at a two week high. The pair rose 450 pips in the last two days.

CURRENCIES: Dollar Up As Weak Data Hits Stocks

noreply@blogger.com (fun) — Sun, 18 Oct 2009 19:19:00 +0000

CURRENCIES: Dollar Up As Weak Data Hits Stocks

By Deborah Levine

The U.S. dollar advanced versus the euro and Japanese yen on Friday as data showed gains in foreign funds flowing to the U.S. and weakness in consumer confidence spurred selling of stocks.

The dollar and British pound rebounded from recent lows scored the previous day as traders reversed bets that the dollar will fall further, and U.S. equities declined, easing pressure to continue selling the greenback.

"Going into the weekend, today's sell-off in the Dow provides players with a convenient excuse to take profit on short U.S. dollar positions and reload for next week," Michael Woolfolk, senior currency strategist at The Bank of New York Mellon, wrote in emailed comments.

The U.S. dollar index (DXY) rose to 75.584, up from 75.480 in North American trade late Thursday after sliding to a series of 14-month lows earlier in the week.

The dollar bought 90.82 yen, up from 90.59 yen, giving up bigger gains earlier in the session.

The euro traded at $1.4903 versus the dollar, down from $1.4933 after failing to breach the psychologically important $1.50 level.

Reducing the attractiveness of equities and supporting the dollar, a report showed U.S. consumer sentiment pulled back more than anticipated this month.

The University of Michigan/Reuters index fell to 69.4 in early October from 73.5 in September. Analysts surveyed by MarketWatch expected, on average, for the index to read 72.

That followed a report showed U.S. industrial production jumped 0.7% last month, topping expectations. Capacity utilization rose to 70.5% in September from a revised 69.9% in August, also higher than anticipated.

"These diverging signals highlight the recent uncertainty" over whether third-quarter growth can be sustained, analysts at Action Economics wrote. "The downside risks as we approach year-end are clear."

An earlier report from the U.S. Treasury Department showed foreign investors nearly doubled purchases of U.S. assets in August.

Foreign official buyers sold more short-term assets and bought long-term securities. Private investors in other countries bought more U.S. equities and favored longer-term assets of all types, indicating more preference for riskier assets than Treasurys, noted foreign-exchange analysts at Barclays Capital.

Gains in stocks and other indications of investor willingness to make more aggressive investments over the last several months have been detrimental to the dollar, as its safe-haven status is no longer desired.

"Our overall assessment is that these numbers remain mediocre but are not nearly as negative as the July release," Barclays analysts wrote in a note.

Focus also returned to the lack of fluctuations in the Chinese yuan, a day after the U.S. Treasury repeated its previous finding that China was not formally manipulating its currency.

The People's Bank of China set the yuan's official rate 6.8270 against the dollar Friday, according to reports, down slightly from 6.8267 Thursday. The yuan is allowed to fluctuate on 0.5% on either side of the official daily rate.

China's foreign-exchange policy risks "unwinding" some of the progress made in reducing global trade imbalances during the financial crisis, the U.S. Treasury said Thursday in its latest report on foreign-exchange trading.

Weekly move

The dollar index is still headed towards a second weekly loss, sliding more than 1% from last Friday. The yen has seen a roughly 1% increase since last Friday. The shared euro is still up about 1.4% versus the dollar this week.

With much vocalization about the fall in the dollar's value, some analysts and policy makers alike point to the still orderly decline that has left the dollar index down 7% this year, which is not abnormal given the reversal of investor's need for safety in the credit crisis and a readjustment of imports and exports as consumer demand has slowed.

"No policy maker is going to argue for a weak dollar," said Dallas Federal Reserve President Richard Fisher said Friday, according to news reports. Recent movement in the dollar "has to do with trade adjustment."

Euro breather

August trade data for the euro zone showed the 16-nation region swung to a larger-than- deficit with the rest of the world.

The figures come amid rising unease among euro-zone officials and businesses over the strength of the euro, which fell slightly against the dollar to $1.4903 on Friday.

From a technical standpoint, the euro remains "slightly overbought," versus the dollar, wrote Nicole Elliott, a technical analyst at Mizuho Corporate Bank.

Nonetheless, a "weekly close above $1.4800 would confirm that the next leg of the (euro) rally has started," she said.

British pound

The battered pound was the biggest winner among major currencies, continuing to power higher versus the euro and the greenback a day after a Bank of England policy maker signaled satisfaction with the impact of the central bank's quantitative-easing strategy.

The British pound gained ground versus the dollar rising to $1.6355, up from $1.6270 Thursday. The euro slipped 0.8% versus sterling to 91.11 pence.

The British currency has advanced 2.6% this week against the dollar.

Traders said the remarks by Paul Fisher, the bank's director of markets and member of the Monetary Policy Committee, were sufficient to trigger an explosive round of short covering. U.S. Commodity Futures Trading Commission data released last week showed a historic build-up of short positions against British pound futures, noted analysts at Brown Brothers Harriman.

"The fundamentals for the pound are still negative, with interest rate differentials favoring other currencies," they wrote. "Next week's minutes of the Bank of England meeting may also reinforce the fragile nature of the economic recovery, and the likelihood of rates remaining at this low level for some time."

Others cautioned that betting against the pound in the midst of a run of unexpectedly strong third-quarter earnings report by major banks could prove perilous.

"We would caution against being short GBP [selling the British pound] when U.S. bank earnings are again generally beating expectations, as markets treat GBP as a proxy for the performance of the financial sector," said Adam Cole, global head of FX strategy at RBC Capital Markets in London.

"Our short-term models also continue to show GBP heavily oversold relative to short rate expectations and bank stocks, consistent with other evidence that short-GBP is a seriously overcrowded trade currently," he wrote in emailed comments.

German VDIK: May Up 09 New Car Registration View To 3.7M Units

noreply@blogger.com (fun) — Fri, 02 Oct 2009 07:58:00 +0000

German VDIK: May Up 09 New Car Registration View To 3.7M Units

FRANKFURT (Dow Jones)--Germany's association of international vehicle manufacturers, VDIK, is considering raising its 2009 outlook for German new car registrations to 3.7 million vehicles from 3.45 million vehicles previously, the association told Dow Jones Newswires Friday.

New registrations in September rose about 20% on the year and about 26% in the first nine months of 2009, the association added, noting these are preliminary figures. In 2008, 3.09 million new cars were registered according to the association.

Company Web site: www.vdik.de

ECOFIN: Spain Fin Min: Not Worried About Inflation

noreply@blogger.com (fun) — Fri, 02 Oct 2009 07:56:00 +0000

ECOFIN: Spain Fin Min: Not Worried About Inflation

GOTHENBURG, Sweden -(Dow Jones)- Inflation isn't a concern at the moment, Spanish Finance Minister Elena Salgado said Friday.

Salgado, speaking to journalists on the sidelines of a meeting of European Union finance ministers and central bankers, didn't say whether she was referring to the Spanish economy or the euro zone as a whole.

Subdued inflation among the countries that use the euro has allowed the European Central Bank to cut its key rate to 1.0% from 4.25% over the past year.

Salgado noted that recent stress tests conducted on E.U. banks showed lenders were "resilient."

-By Adam Cohen, Dow Jones Newswires; +322 741 1486; adam.cohen@dowjones.com

Forex: EUR/USD: Risk on the downside, could test 1.4440 area - Commerzbank

noreply@blogger.com (fun) — Fri, 02 Oct 2009 07:55:00 +0000

The Euro remains trading on a steady downward parttern since topping at 1.4845 on September 23, reaching, so far 1.4500 low on Asian session, and despite the current pick up, Karen Jones, technical analyst at Commerzbank, observes the possibility of further retreat, heading to levels around 1.4400.

The Euro as started to erode 1.4550 area, and, according to Jones, opening the doors for a deeper downward correction: "EUR/USD has started to erode support at 1.4551/38, leaving under pressure in the near term to see a deeper correction lower."

On the downside, Jones points out to 1.4440 as initial target: "We would expect intraday rallies to now remain capped by 1.4640/75 and while below here the risk is that we will see a deeper to 1.4440 then 1.4381/16 (55 day ma uptrend)."

ECOFIN: Dutch Fin Min: Happy With US Stance On Strong Dollar

noreply@blogger.com (fun) — Fri, 02 Oct 2009 07:54:00 +0000

ECOFIN: Dutch Fin Min: Happy With US Stance On Strong Dollar

GOTHENBURG, Sweden -(Dow Jones)- Dutch Finance Minister Wouter Bos Friday said he was happy with the U.S. authorities' stance in favor of a strong U.S. dollar.

"Of course I am," Bos said to reporters, when asked if he was happy after U.S. Treasury Secretary Tim Geithner said a strong dollar was in the interest of the U.S. economy.

Bos, who is meeting other European finance ministers and governors of central banks here, also said that the European Union should play a leading role in the fight to preserve the environment and address climate change.

The Netherlands could adopt a carbon tax like France is planning, he also said.

After addressing the issue of the financial sector and the economy Thursday, E.U. finance ministers are to discuss Friday environmental and employment issues for the second day of their meeting.

World Bank Head: 2009 Looks "Difficult",2010 "Highly Uncertain"

noreply@blogger.com (fun) — Fri, 02 Oct 2009 07:53:00 +0000

World Bank Head: 2009 Looks "Difficult",2010 "Highly Uncertain"

ISTANBUL -(Dow Jones)- This year has been "difficult," next year looks "highly uncertain" and more capital may be needed by 2011, the head of the World Bank said Friday.

But large-scale public deployment of financial resources, including by multilateral lenders, has staved off major trouble, Robert Zoellick said at a press conference in Istanbul.

"The danger today is no longer a collapsing economy... but complacency," Zoellick said.

The World Bank, which finances activity in developing nations through bodies such as the International Finance Corporation, has tried to rise to the challenge the global credit crisis has wrought on emerging economies, he said. But more cash will likely be needed, he added.

Forex: USD/CHF rises above 1.0300

noreply@blogger.com (fun) — Thu, 24 Sep 2009 18:28:00 +0000

FXstreet.com (Córdoba) – Greenback is rising further across the board as U.S. markets are extending losses. USD/CHF broke above 1.0300 and rose to 1.0310. The pair is now up for the day after the Swiss failed to hold gains and is 0.05% above today’s opening price. The next level to consider lies at 1.0325 and above at 1.0360. Dollar is accumulating an increase of more than 70 pips since the opening bell at Wall Street.

Against the Euro, the Franc is pulling back after EUR/CHF fell to 1.5080 posting a fresh 4-month low. In case the pair falls further it could attract the attention of the Swiss National Bank.

Forex: EUR/USD falls further and posts 1.4663 as fresh intra-day low

noreply@blogger.com (fun) — Thu, 24 Sep 2009 18:27:00 +0000

FXstreet.com (Córdoba) – The Dollar is rising further across the board. EUR/USD broke below 1.4675 and fell to 1.4663, posting a fresh intra-day low. The next level to watch is at the 1.4645 and below at the 1.4600/10 zone (weekly lows). The pair is 0.15% below today’s opening price. The Euro failed to hold gains and lost them after the opening bell at Wall Street.

THE FASTBROKERS RESEARCH TEAM afirms: “For the downside, the EUR/USD has multiple uptrend lines serving as technical cushions along with weekly lows and the psychological 1.45 level. Therefore, the EUR/USD has several lines of defense to the downside. Though the uptrend is intact, we are initiating a neutral outlook on the EUR/USD as we monitor the behavior of the Dollar and U.S. equities.”

EU Barroso: Economic, Financial Situation Still Fragile

noreply@blogger.com (fun) — Thu, 24 Sep 2009 18:24:00 +0000

EU Barroso: Economic, Financial Situation Still Fragile

BRUSSELS -(Dow Jones)- The financial system and the global economy remain fragile, European Commission President Jose Manuel Barroso said Thursday, warning that state support measures are still needed.

According to the text of a speech delivered on the sidelines of the Group of 20 industrialized and developing countries, Barroso said it is too soon for governments to withdraw fiscal stimulus spending and other efforts to foster economic recovery.

"We need to keep support measures in place, but be ready with an exit strategy," he said in the speech at the University of Pittsburgh.

Barroso said the G20 leaders, who are meeting Thursday and Friday in Pittsburgh, should agree to financial-market reforms, including an international agreement to rein-in pay and bonuses. Some European Union leaders want a pact to include strict pay caps for bankers, while the U.S. favors a less-severe approach.