Tag Archives: analysis

Eur/Nzd is a bull

20 Feb

The Reserve Bank of New Zealand Governor Wheeler stated that the NZD is overvalued in his address to the press Today, stating that he is willing to intervene to bring NZD lower if needed. This is a surprising dovish turn from what we’ve been hearing this week. Prime Minister Keys and Finance Minister English have came on record to publicly support a stronger NZD, stating the benefits a strong NZD brings for consumers as import costs decrease. This, together from the hawkish RBNZ statement earlier this month assured traders and speculators alike that a rate cut is not even on the table for discussion. Now, Wheeler has done a 180 degrees turn around and say that he is willing to use the benchmark rate as a tool to lower NZD, essentially alluding to a rate cut down the road. Interestingly, there are unconfirmed reports that RBNZ has been participating in market intervention by selling NZD/USD above 0.845 for the past few months, so it seems that RBNZ was never truly comfortable with a high NZD, and it is only the failure of keeping NZD down that Wheeler has been forced to suggest rate cuts.

Source: fxstreet.com

eur nzd


U.S. Oil production increased to peak last 20 years Oil prices declining

13 Feb

Oil prices fell on Wednesday after the U.S. market Energy Information Administration, the statistical agency of the U.S. government’s Energy, announced that U.S. oil production rose to the highest level in over 20 years.

Weekly U.S. government data presented show that the U.S. oil production rose last week to 7.06 million bpd, the highest level since December 1992, according to Bloomberg.

Oil prices fell to 0.3% after information came out.

Reference to the U.S. market are traded in New York at $ 97.34 a barrel, down 17 cents, while the volume of contracts traded is 42% higher than the average last 100 days.

Quotation of Brent crude fell 20 cents to about $ 118 per barrel.Volume for Brent crude is above the range with 17% average of last 100 days.

Source: zf.ro

13 Feb

indexThe yen rallied on Tuesday, reversing the previous day’s late selloff against the dollar and euro after an official with the G7 said it is worried about excess moves in the Japanese currency.

World stock markets edged higher and the Dow Industrials climbed within striking distance of an all-time high as investors looked ahead to President Barack Obama’s State of the Union address on Tuesday evening.

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Economic look

11 Feb

imagesRisk trends collapsed in 2000 and 2007 although the foundations were perceived as excellent, with economic growth (speculative) in the U.S. and Europe. Current trend is not a creation of wealth  (everybody get a loan) or expectations in this regard but the creation of  coordinated central bank interventions. Creation of paper money out of thin air led this to historically low interest rate levels forcing investors to protect themselves from negative real interest rates and seek higher returns in safety and risk assets (stocks, commodities, currencies like NZD, EUR, GBP, CAD which tend to appreciate in periods of optimism, against  USD, JPY, CHF, which is appreciated in times of panic). Continue reading

E.U. budget could be reduced

8 Feb

E.U. is approaching British perspective

British proposal is gaining momentum, German austerity now has an ally with a renewed bargaining power, Britain. The debate now is concentrated on a limit of 960 billion euros wich is under the European Council’s proposal of 1.03 trillion. Austere approach was supported by those who contribute more than they receive back from the EU (Germany, Netherlands, Sweden is the name most difficult). Continue reading

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