Double Bs2nd February, Vantage Fx Uk Update
Jay Mawji of Vantage FX (http://www.vantagefx.co.uk/) takes a look at news around the Eurozone on 2nd February 2012 including news around bonds and bailouts at the start of February.
It is all about the Double Bs in the Eurozone today; Bonds and Bailouts.
After the ECB injected liquidity in the markets in December, Bond auctions have become increasingly popular as investors have taken to Eurozone Bonds in a favourable light. The increasing demand for these bonds has helped to edge the cost of borrowing downward, something that was desperately needed to prevent further bailouts. Eurozone countries now have a respite from increasing borrowing costs which have darkened debt clouds in the past. A string of successful auctions has attracted investors to safer investments in the Eurozone (if there is such a thing) and has helped to boost the strength of the Euro. Although Bond auctions have been successful, underlying results in the economy havent been as favourable and it is clear that the Eurozone is dangerously close to slipping into another recession.
The Eurozone is waiting on a bailout of up to 1trn if Greece can agree a deal with private investors to take a haircut on their debt and settle for new structured Bonds. Negotiations have been long and apparently very challenging, with the usual promises for a resolution shortly. The rest of the Eurozone seems to be moving on, leaving Greece behind. Angela Merkel has driven reforms forward, with Eurozone nations now having to submit budget deficit plans and risk being held accountable by the ECB. Promises from the Eurozone mean that we should have an agreement in Greece by the end of tomorrow, the market isnt so sure about that.
It might be Double Bs in the Eurozone today, but for a while to come there will be Double Ds (Debts and Deficits).
Learn more about Forex trading and Vantage FX at http://www.vantagefx.co.uk/
Trading derivatives and Forex carries a high level of risk to your capital and you should only trade with money you can afford to lose. Forex trading may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
About Vantage FX UK
Vantage FX UK is a currency trading broker based in the City of London, providing foreign exchange trading services to clients in the UK, the EU and the rest of the world.
What sets Vantage FX apart is its wide range of services and outstanding level of customer support. The company strives to provide an intuitive, interactive Forex experience by continually innovating and taking advantage of the latest trading technology, such as MetaTrader 4 and Expert Advisors.
Vantage FX also offers extensive educational resources to help give traders
It is all about the Double Bs in the Eurozone today; Bonds and Bailouts.
After the ECB injected liquidity in the markets in December, Bond auctions have become increasingly popular as investors have taken to Eurozone Bonds in a favourable light. The increasing demand for these bonds has helped to edge the cost of borrowing downward, something that was desperately needed to prevent further bailouts. Eurozone countries now have a respite from increasing borrowing costs which have darkened debt clouds in the past. A string of successful auctions has attracted investors to safer investments in the Eurozone (if there is such a thing) and has helped to boost the strength of the Euro. Although Bond auctions have been successful, underlying results in the economy havent been as favourable and it is clear that the Eurozone is dangerously close to slipping into another recession.
The Eurozone is waiting on a bailout of up to 1trn if Greece can agree a deal with private investors to take a haircut on their debt and settle for new structured Bonds. Negotiations have been long and apparently very challenging, with the usual promises for a resolution shortly. The rest of the Eurozone seems to be moving on, leaving Greece behind. Angela Merkel has driven reforms forward, with Eurozone nations now having to submit budget deficit plans and risk being held accountable by the ECB. Promises from the Eurozone mean that we should have an agreement in Greece by the end of tomorrow, the market isnt so sure about that.
It might be Double Bs in the Eurozone today, but for a while to come there will be Double Ds (Debts and Deficits).
Learn more about Forex trading and Vantage FX at http://www.vantagefx.co.uk/
Trading derivatives and Forex carries a high level of risk to your capital and you should only trade with money you can afford to lose. Forex trading may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
About Vantage FX UK
Vantage FX UK is a currency trading broker based in the City of London, providing foreign exchange trading services to clients in the UK, the EU and the rest of the world.
What sets Vantage FX apart is its wide range of services and outstanding level of customer support. The company strives to provide an intuitive, interactive Forex experience by continually innovating and taking advantage of the latest trading technology, such as MetaTrader 4 and Expert Advisors.
Vantage FX also offers extensive educational resources to help give traders
Source...