More cable stops gathered up through 1.5050.
Presently at 93.00 from early 92.65. Hedge fund is said to have been good buyer in this pairing. Yen seeing generally weaker tone, EUR/JPY up at 118.25 from early 117.00. Move comes against backdrop of improving risk sentiment.
Cable up at 1.4995 from early 1.4870, EUR/GBP down at .8447 from early .8490.
Blimey, anyone would think those London traders are feeling a little more optimistic now we’ve gotten a new government. Go figure. Large hedge fund seen notable buyer this morning.
Talk stops now through 1.5010.
–Adds comments on fiscal policy, confidence, pension reform, the euro
PARIS (MNI) – European Central Bank President Jean-Claude Trichet
on Wednesday refused to reveal the volume of sovereign bonds the ECB
intended to purchase, saying only — as he already has said — that the
decision to buy them was intended to restore normality to markets.
“I will tell you nothing about that,” Trichet responded when asked
about the size of bond purchases in an interview with France’s Europe 1
radio. “We are attempting to restore the normal functioning of markets
that have been functioning very abnormally,” he said.
“We are restoring normality to certain segments of the market, and
that is what we are seeing already,” Trichet said.
He dismissed as “absurd” the suggestion that by purchasing bonds,
the ECB was relaxing its price stability standards. “We have already
said we would reabsorb all the liquidity” injected by purchasing debt
securities, he said. He insisted that he had “fought for [price
stability] all of my life,” and noted the ECB’s success at keeping
inflation close to its goal since the creation of the euro.
“People can have confidence,” he said, adding that public
authorities and the private sector alike “must make the right
He denied that the ECB’s decision to buy bonds was a violation of
EU statute. “It’s completely in line with what the Treaty allows us to
do,” he said. “We hadn’t done it until now because it wasn’t necessary.”
Trichet rebuffed charges that the ECB’s independence had been
compromised by its latest decision. “I’ve had enough conflicts with
[government] authorities so that nobody can put in doubt my
independence,” he said. “We have always taken our responsibilities. We
have a sense of direction. Our direction is the stability of prices.”
In the current financial environment, “we must take rapid, rapid
decisions that do not put in doubt the stability of prices,” he said.
Trichet said the confidence of households, businesses and investors
was imperative. “Without confidence of businesses we can’t do anything;
without the confidence of investors we can’t do anything.” And in order
to restore that confidence, “returning to a sustainable situation with
regard to fiscal policy is essential,” he said. He touted the virtue of
“budgetary wisdom” and called for a reinforcement of intra-European
surveillance of national fiscal policies.
In particular, “Greece must rigorously apply the budget
consolidation plan that’s been decided,” Trichet said.
He said it was “clear” that France must reform its retirement
system, adding that “all countries must reform their retirement
Trichet reiterated that the ECB enjoys good relations and
collaborates closely with all the major central banks, including the
Federal Reserve, the Bank of England and the People’s Bank of China. He
said the ECB was in close touch with its counterparts around the world
last weekend when it decided to embark on the bond buying program.
Asked about the fate of the euro, Trichet replied: “I am more than
confident in the future of the euro. The euro is not in question. What’s
in question are the budget policies conducted by governments inside the
–Paris newsroom, +331-42-71-55-40; firstname.lastname@example.org
EUR/USD lifted to 1.2660 at writing.
- To cut civil service salaries 5% in 2010, freeze in 2011
- Regional governments to cut 1.2 bln euros
- To eliminate birth payments of 2.5 bln euros
- To cut index-linked pension rise in 2011
- Cuts to save additional 15 bln euros in 2010, 2011
- Spanish cabinet to vote on cuts and 2011 budget spending on Friday
FRANKFURT (MNI) – The European Central Bank said Wednesday that a
total of E52.065 billion Eurosystem covered bond purchases had settled
as of May 11.
As of May 10, settled acquisitions had totaled E51.837 billion, the
ECB said Tuesday. The ECB plans to buy a total of around E60 billion
covered bonds by the end of June 2010 at the latest.
The program is aimed at revitalizing a market segment that has been
exceptionally hard hit by the financial turmoil.
–Frankfurt Bureau tel.: +49-69-720 142, email: email@example.com
Has come in at +0.1% q/q, below median forecast of +0.3%. Q4 2009 GDP has been revised downward, to +0.5% from previous +0.6%
2009 GDP as a whole revised down to -2.5% from previous -2.2%
BERLIN (MNI) – The German government used the Ecofin deliberations
on a euro stability plan concluded in the wee hours of Monday to advance
the candidacy of Bundesbank President Axel Weber to become the next
European Central Bank president, German business daily Handelsblatt
“Several Eurozone states have agreed to that request of the
[German] federal government,” the paper said, citing an unidentified
According to Handelsblatt, Germany pushed for Weber with the
argument that the Bundesbank president enjoys the reputation of an
The term of current ECB President Jean-Claude Trichet ends on
November 1 next year.
–Berlin bureau: +49-30-22 62 05 80; email: firstname.lastname@example.org
- We’re not running the money printing machines
- Must remain alert
- ECB actions in line with what treaty allows it to do
- Everyone knows budget discipline is necessary
- Nobody doubts our independence
- Greece must rigorously apply fiscal consolidation programme
- Asked if France must reform pension system, replies “obviously”
- Return to sound finances is vital for economic growth
- I am more than confident in the future of the euro
BEIJING (MNI) – Eurozone nations should establish a mechanism to
allow for cross-border fiscal transfers between member nations in order
to avoid a repeat of the recent crisis, International Monetary Fund
Managing Director Dominique Strauss-Kahn said in comments published
Strauss-Kahn told the Financial Times that his proposal would
involve short-term budgetary transfers rather than any permanent
arrangement and appears designed to allow for debt-burdened euro-zone
members to receive quick injections from their more liquid peers.
“What you need is stronger surveillance and tools to organise
transfers from one part of the area to other parts,” he said.
The report noted that Olli Rehn, the EU’s monetary affairs
commissioner, will today put forward similar proposals for fiscal and
economic policy co-ordination and that members will be urged to submit
their annual budgets for review by other members ahead of them becoming
An EU policymaker, who was not identified, was quoted as saying
that “this is a not a matter of interfering with national sovereignty.
It is about checking the assumptions on which budgets are based. A lot
of the problems the euro area has had in the past have come from poorly
Eurozone leaders remain determined to reinforce the stability and
growth pact which limits budget deficits and public debt levels, the
** Market News International Beijing Newsroom +86-10 5864 5241**
Founded in 2008, ForexLive.com is the premier forex trading news site offering interesting commentary, opinion and analysis for true FX trading professionals. Get the latest breaking foreign exchange trade news and current updates from active traders daily. ForexLive.com blog posts feature leading edge technical analysis charting tips, forex analysis, and currency pair trading tutorials. Find out how to take advantage of swings in global foreign exchange markets and see our real-time forex news analysis and reactions to central bank news, economic indicators and world events.
Our authors have years of experience in financial markets and provide diverse, thought-provoking updates relating to news about global macro events and the worldwide forex economic calendar, with frequently updated content that is educational for traders at all levels from beginner to novice that can help traders make better decisions about forex trading. Our forex news focuses on G10 events, macroeconomic indicators, major equities indexes, treasury and bond yields from around the world, politics as it relates to forex trading and news from the FOMC as well as global central banks in, Europe and Asia.