Browsing all articles tagged with currency

French President Urges Euro Zone Government

Francois Hollande, French President called on Thursday for an economic government for the euro zone with its own budget the right to borrow a harmonized tax system and a full time president.

At a 150 minute news discussion marking his first year in office a day following economic statistics showed France had fall into recession, the Socialist leader defended his record on economic reform and budget regulation and informed the French people they would have to work a bit longer for a complete pension in future.

Rebutting criticism that France has lost its leadership role in Europe as of its dwindling economic competitiveness, Hollande thought he wanted to create a fully-fledged political European Union within two years.

Hollande said it is my responsibility as the leader of a founder member of the European Union to pull Europe out of this torpor that has gripped it and to reduce people’s disappointment with it.

He accepted that he could face resistance from Germany, Europe’s dominant power, which opposes mutualising debt between member states. Berlin is also reluctant to give the euro zone its own secretariat for fear of deepening division in the EU, among the 17 members of the single currency and the 10 others.

Non-euro Britain’s government previously faces growing domestic pressure to hold a referendum on leaving the bloc.

Hollande stated he wanted Britain to stay in the EU but added, he can understand that others don’t want to join the single currency, however they cannot stop the euro zone from advancing.

Hollande said a future euro zone economic government would debate the main economic and political decisions to be taken by member states, harmonize welfare policies and national fiscal and launch a battle against tax fraud.

He proposed bringing forward planned EU spending to combat record youth unemployment, pushing for an EU-wide transition to renewable energy sources and envisaged a budget capacity that would be decided to the euro zone along with the gradual likelihood of raising debt.


Two Democrats ask Fed, OCC for Conference On Foreclosure Resolution

Two Democratic officials on Monday stepped up their analysis of how supervisor’s handled a botched reconsider of precedent home mortgage foreclosures, asked for a conference with regulatory officials because they seek further information regarding the reviews.

The Office of the Comptroller of the Currency and the Federal Reserve reached conclusions that worth about $9.3 billion with 13 banks former this year to end case-by-case reviews of whether they had wrongly detained homes.

Elizabeth Warren, Senator of Massachusetts who sits on the banking committee, and Elijah Cummings, Representative of Maryland who is the top Democrat on the House Oversight Committee invite regulators for more information in January regarding the reviews following the resolutions were announced.

The officials stated the public needed to recognize more regarding the process in order to trust it.

They are Unsatisfied with the reply they received from the OCC and the Fed on Friday, the pair on Monday required further information and a personal briefing on the significance of their requests.

Some officials wrote that the illegal activity should not be protected by regulators as if it constitutes trade secrets or proprietary information. They persist to believe transparency is critical around the procedure of the review and settlement processes.

The agreement proved contentious as they ended reviews that had already cost the banks some $2 billion however had not yet resulted in any relief to consumers. Banks including JPMorgan Chase & Co, Bank of America Corp and Wells Fargos were part of the reviews.

The organizations have provided slight information regarding what those reviews produced and how the experts who performed the reviews were monitored.

Ben Bernanke the Fed Chairman and Thomas Curry the Comptroller of the Currency stated in their letter on Friday that the OCC and the Fed plan to make further information public, such as the findings of reviews and the costs linked with them.


Federal Reserve Official Warns Regarding Slipping Into Currency Wars

A US Fed administrator waded into the steamy debate regarding global currency wars on Friday, caution’s that such monetary policies would only damage world trade and the economies that were concerned.

Charles Plosser, Philadelphia Federal Reserve Bank President stated that the central banks in many countries are implementing policies, frequently under pressure from governments, to organize their currencies and calling it an unhealthy trend.

He further added that the governments and central banks require to be careful regarding allowing us to slip into a regime like that because that would not be healthy for world trade or for the economies.

Easy monetary policies by main central banks such as the European Central Bank or Fed frequently strengthen currencies of developing countries, damaging those countries’ exporters. That in turn has encouraged some central banks or governments to ease their own polices in reaction

The explanation from Plosser, a long-term critic of the Fed’s easy monetary policies, while largely for domestic causes come on a day newly elected Japanese Prime Minister Shinzo Abe complete his major push yet to make jobs growth part of the Bank of Japan’s mandate.

Under strong pressure from Prime Minister Shinzo Abe, the BOJ will likely approve a 2 percent inflation target during the month of January, double its existing goal, and believe easing monetary policy again, most likely by growing government debt and asset purchases.

Besides Japan, Brazil, Switzerland and China have all taken steps to push down the worth of their currencies in recent years. The Fed, Bank of England and ECB have depressed their interest rates over long periods in the arouse of the global recession, and forced trillions of dollars into their economies.

Many countries are annoying to use monetary policies to control their currencies, to protect their countries from fluctuating currencies.


USD/JPY D1 Technical September 27

USD/JPY has a support at 77.55. The price at this point should be watched carefully it can provide this pair a very good bullish trend. Bollinger bands are showing selling signals but as long as pair hold its support, more bullish chances are there for USD/JPY .Unemployment Claims, Retail Sales and Tokyo Core may have impact on currency.


AUD/USD D1 Technical September 27

AUD/USD is in bullish trend from its strong support 1.0320 and moving towards north to break resistance 1.0430. Bollinger bands are not showing clear signal. Today’s close will decide the trend for the currency. Unemployment Claims, Pending Home Sales can affect the pair.


EUR/USD Intraday Technical Analysis


Euro gave up versus the dollar on Monday from 1.2435 to 1.2382. The currency has a strong support at the level of 1.2360 and strong resistance at the level of 1.2453, as it is high of May 31, 2012. Daily closure below 1.2350 will show significant bearish strength, however if the daily closure above 1.2460 it will show considerable bullish strength.


Later today, the eurozone will release a report on investor confidence, while the U.S. will release official data on factory orders, a leading indicator of output.