Forex Market Updates & Commentary

Feds Yellen says forceful action needed in Europe
Russia’s Putin weighs in on EFSF
Sarkozy expresses confidence that new Italy government will be formed soon…
Greek Finance Minister says conditions are very difficult
Juncker says should be no doubt about Greece’s commitment to Oct 27th plan..
ECB Stark says ECB has room for manuever on interest rates
SNBs Danthine says level of CHF is still highly valued
Market chatter that ECB/EFSF will set up “pegged” levels for various bonds
EURUSD soars again. 1.3792 the next target. 1.3757 support
Fitch changes outlook to negative for Hungary. Affirms BBB-

Feds Yellen says forceful action needed in Europe

Posted: 11 Nov 2011 10:17 AM PST

Forceful action needed to curb Europe crisis
US banks have substantial links to Europe firms
US to conduct a new stress test on US banks
Bigger turmoil may harm US finance
Fed is monitoring situation closely

Posted: 11 Nov 2011 10:14 AM PST

Says EFSF and IMF likely does not have enough resources to overcome crisis.. Estimates may need 1.5 trillion. The comments recently have the figure below 1 trillion.

Sarkozy expresses confidence that new Italy government will be formed soon…

Posted: 11 Nov 2011 10:09 AM PST

…and it will be capable of overcoming crisis.

Greek Finance Minister says conditions are very difficult

Posted: 11 Nov 2011 09:54 AM PST

Can bring Greece out of dramatic situation
1st priority is the next tranche
Eurogroup can disburse loan after phone conversation.
Troika negotiations must be started to finalise the new program
2012 budget will record a primary surplus.Will save interest payments of about 5 bln euros in 2012

It is a good thing that it is now as easy as picking up the phone and getting the money.

EURUSD drifts lower toward the support at the 1.3750. Will the sellers start to take over? Watching the 1.3750 level.

Juncker says should be no doubt about Greece’s commitment to Oct 27th plan..

Posted: 11 Nov 2011 09:41 AM PST

“Should” does not mean they will. It sounds like Juncker may be a little skeptical.

ECB Stark says ECB has room for manuever on interest rates

Posted: 11 Nov 2011 09:24 AM PST

..compared to US, Britain and Switzerland.

The EURUSD has moved a little lower on the comment as lower rates should lead to a lower currency. However, the bulls remain in charge and sellers still need to over take the bullish bias. The next support comes in at 1.3759 A break below this level targets the 1.37499 level. This is the 38.2% of the last leg higher in the pair.

SNBs Danthine says level of CHF is still highly valued

Posted: 11 Nov 2011 09:10 AM PST

Ready to take further measures in CHF
Level of CHF cap had to be realistic
They are monitoring CHF developments constantly.

The EURCHF has surged higher on the headlines and is trading above the high from yesterday at 1.2384.

Market chatter that ECB/EFSF will set up “pegged” levels for various bonds

Posted: 11 Nov 2011 08:40 AM PST

This is unconfirmed but may be contributing to the sharp rise in the EURUSD.

The implication (or the thought) is it would prevent excessive speculation and therefore would presumingly prevent a run higher in yields like we saw in the Italian bonds this week. IF true, the ECB has joined the print money club it would seem.

EURUSD soars again. 1.3792 the next target. 1.3757 support

Posted: 11 Nov 2011 08:24 AM PST