-Sent from my BlackBerry® phone- Ronald e-Mail -----Original Message----- From: MeLinda MeLisa <[email protected]> Sender: [email protected] Date: Thu, 3 Feb 2011 06:05:19 To: <[email protected]> Reply-To: [email protected] Subject: [StockForex] Euro Is Still Not Out Of Dangers Zone Euro Is Still Not Out Of Dangers Zone February 02, 2011 - http://marketpin.blogspot.com/ NEW YORK (Market News)-- The European Central Bank has become more political since its decision to buy euro-zone government bonds last year, and is therefore unlikely to raise interest rates early even if inflation surges, according to Commerzbank chief economist Joerg Kraemer. "Even if inflation moves towards 3%, the ECB is still unlikely to raise rates until the fourth quarter [of this year]" Kraemer says EUR/USD is "teetering" lower on profit-taking, strong U.S. data and concerns about further turmoil in Egypt, says HiFX senior trader Stuart Ive. "The markets are still preoccupied with Egypt to a degree especially after (Egypt's President) Mubarak supporters protested after his speech yesterday." The euro fell from the near three-month high against the dollar it reached earlier Wednesday, as social unrest in Egypt combined with the euro zone's ongoing debt crisis to inject some caution into bullish traders. Boiling instability in Egypt tempered a revival in an appetite for riskier investments, as violence erupted between antigovernment forces and supporters of embattled President Hosni Mubarak. Nervous investors bought dollars as a haven, pulling the U.S. currency up from its weakest level against the euro since early November. Developments in Europe's debt crisis also doused some of the market's enthusiasm for the euro, reminding traders that the euro zone's woes have not disappeared. German Deputy Finance Minister Joerg Asmussen rejected the idea of creating a euro-zone bond, reiterating that any revisions to the existing euro-zone fiscal rescue facility will likely require fiscal concessions from euro-zone governments. Elsewhere, ratings agency Standard & Poor's lowered its assessment of six Irish banks and placed them on watch for further downgrades. "People are watching with one eye what's going on in the streets in Cairo, and it's causing second thoughts about" taking the euro higher, said Brian Dolan, chief currency strategist at Forex.com in Bedminster, N.J. Risk aversion coalesced with fears that the process for resolving Europe's debt issues could turn "sloppy," Dolan added. "There's a question of some further [euro] weakness as the move-up stalls and some people head for the exits." The euro slipped to new U.S. session lows underneath $1.3780, below its offshore trading high at $1.3862. Against the yen, the euro purchased Y112.72, slightly higher on the day. Meanwhile, the dollar bought Y81.80, up slightly from Tuesday. Source: http://marketpin.blogspot.com/ February 02, 2011
