By Enrique Diaz – Alvarez* The annual meeting of the world’s central bankers in Jackson Hole delivered a decidedly hawkish message, led by US Federal Reserve Chairman Powell giving a very short and clear speech. However, currency markets seem to have priced in this development, and the reaction was relatively subdued. All G10 currencies are […]
Tag: euro
The euro and bond yields are on the rise
Eurozone bond yields are showing a rise today as the European Central Bank table seems to be discussing a larger increase in interest rates, by 0.75%, at the Governing Council meeting on September 8. The mood worsened further after the speech by the head of the US Federal Bank (Fed) Jerome Powell at Jackson Hall. […]
ING, Capital Economics, Citi: The further plunge of the euro is one way – the energy crisis is a ‘trap’ for the currency
By Eleftherias Kourtalis Further devaluation of the euro is a sure “bet” according to analysts, as the jump in the price of natural gas and the worsening energy crisis in Europe, combined with the onset of recession, “trap” the common currency on a one-way path of weakness . In fact, according to ING estimates, the […]
The euro is at a new 20-year low
The euro is falling to a new two-decade low as concerns about the prospects for the European economy intensify. The euro was found to be losing 1% at 0.9938, below its previous 2022 low of 0.9952. This is the lowest level since 2002, just a few years after the creation of the single currency. Europe’s […]
The ‘bets’ against the euro have soared back to 2020 levels
Driven by concern over the worsening economic situation in Europe and heightened geopolitical risk, investor bets against the euro are now trading at levels similar to October 2020, when the damage from the Covid pandemic had reached global proportions, according to the Bank of New York Mellon, reports the Bloomberg agency. Unlike at the time, […]
Turkey: Exporters revise down 2022 targets amid adverse economic environment
Turkish exporters are revising their year-end targets downward, in a move that could derail the government’s economic plans, as new orders fall amid signs of a global slowdown and inflationary pressures, Reuters reports. Turkey’s exports rose 19 percent year-on-year in the first seven months of 2022 to $144.4 billion, but deteriorating global conditions, exacerbated by […]
The euro is under pressure as the euro zone is headed into recession
The euro, already at its lowest level in two decades, remains an unloved currency, stuck under the relentless pressure of economic developments in the eurozone, which is headed for recession. It remains slightly above par against the dollar, after briefly falling from the level this month for the first time in more than two decades. […]
Latvian energy companies are buying natural gas from Russia in euros, according to Latvijas Gaze
Latvian energy company Latvijas Gaze is currently buying natural gas from Russia and paying in euros instead of the rubles required when dealing with Russian gas giant Gazprom, the company said today. “We buy natural gas from Russia, but not from Gazprom. We get it from another provider,” a Latvijas Gaze spokesman told Reuters. “We […]
HSBC, JP Morgan: One-way short positions in the euro – Dive to $0.95 soon, the risks for the eurozone are in the red
Her Eleftherias Kourtalis Short positions in the euro are recommended to investors by HSBC and JP Morgan, assessing which upward movement is an opportunity to build bearish “bets”, given the many and significant challenges facing the eurozone economy, with fears of a recession hitting already the door of the area. EUR/USD will retest recent lows […]
Bonds are on the rise, but not the euro, after the ECB’s decisions
Yesterday’s decisions of the European Central Bank were positively received by the eurozone bond markets today. Despite the uncertainties that still exist regarding the operation of the New Market Protection Mechanism, the prices of most bonds moved upwards – with the exception of Italian ones – as a result of which yields recorded a small […]