rascouet

Swiss Intervention a `Losing Battle’ as Falling Euro Undermines Hildebrand

by on February 15, 2010

By Lukanyo Mnyanda and Anna Rascouet

Continued here:
Swiss Intervention a `Losing Battle’ as Falling Euro Undermines Hildebrand

Euro `January Effect’ May Signal Further Weakness, MIG Says: Chart of Day

by on February 8, 2010

By Anna Rascouet Feb. 8 (Bloomberg) — The euro may have already peaked against the dollar this year and be heading for further declines for the balance of 2010, according to MIG Bank SA. The CHART OF THE DAY shows that in seven of the 11 years since the euro’s start in 1999, the currency reached its highest or its lowest annual levels against the dollar in January. In 2002, the euro reached its low on Feb. 1. The high for this year was attained on Jan. 13, when the 16-nation currency climbed to $1.4579, before dropping as much as 6.8 percent to a 2010 low of $1.3586 at the end of last week. “It’s interesting how few people realize the propensity for euro-dollar to post either the year’s high or the year’s low at the start of January,” Paul Day , chief market analyst at MIG Bank in Neuchatel, Switzerland, said in an interview. “Historical precedent may indeed suggest that the 2010 high for euro-dollar has already been made. It’s interesting how consistently this January effect has performed.” The euro fell 0.3 percent to $1.3678 on Feb. 5. The currency has dropped 4.5 percent this year. The median of 40 forecasts compiled by Bloomberg is for the euro to rise to $1.42 by year-end. (To save a copy of the chart, click here.) To contact the reporter on this story: Anna Rascouet in London at arascouet@bloomberg.net

Original post:
Euro `January Effect’ May Signal Further Weakness, MIG Says: Chart of Day

Euro `January Effect’ May Signal Further Weakness, MIG Says: Chart of Day

February 8, 2010

By Anna Rascouet Feb. 8 (Bloomberg) — The euro may have already peaked against the dollar this year and be heading for further declines for the balance of 2010, according to MIG Bank SA. The CHART OF THE DAY shows that in seven of the 11 years since the euro’s start in 1999, the currency reached its highest or its lowest annual levels against the dollar in January. In 2002, the euro reached its low on Feb. 1. The high for this year was attained on Jan. 13, when the 16-nation currency climbed to $1.4579, before dropping as much as 6.8 percent to a 2010 low of $1.3586 at the end of last week. “It’s interesting how few people realize the propensity for euro-dollar to post either the year’s high or the year’s low at the start of January,” Paul Day , chief market analyst at MIG Bank in Neuchatel, Switzerland, said in an interview. “Historical precedent may indeed suggest that the 2010 high for euro-dollar has already been made. It’s interesting how consistently this January effect has performed.” The euro fell 0.3 percent to $1.3678 on Feb. 5. The currency has dropped 4.5 percent this year. The median of 40 forecasts compiled by Bloomberg is for the euro to rise to $1.42 by year-end. (To save a copy of the chart, click here.) To contact the reporter on this story: Anna Rascouet in London at arascouet@bloomberg.net

Read the full article →

Greek Credit Rating Cut to A2 by Moody’s; Bonds Rise on One-Step Downgrade

December 22, 2009

By Anna Rascouet Dec. 22 (Bloomberg) — Greece had its credit rating lowered one step to A2 by Moody’s Investors Service, which cited the government’s “long-term solvency risks.” “The government’s debt problem cannot be resolved by growth alone,” Sarah Carlson , London-based lead sovereign analyst for Greece at Moody’s, wrote today in a statement. The country’s difficulties stem from “chronically weak fiscal institutions, which cast a shadow over the government’s ability to implement decisive fiscal retrenchment in order to restore debt sustainability,” she said. Greek government bonds fell for a fourth day, with the yield on the benchmark 10-year note rising above 6 percent for the first time since March. The yield was at 5.99 percent as of 8:13 a.m. in London. Standard & Poor’s cut Greece’s debt rating on Dec. 16 for the second time this year, to BBB+, the third lowest investment- grade level. Fitch Ratings lowered it to the same level Dec. 8. Prime Minister George Papandreou’s government, which came to power in October promising higher spending and wages, is trying to persuade investors it can cut its deficit from 12.7 percent of output to below the European Union’s 3 percent limit by 2013. To contact the reporter on this story: Anna Rascouet in London at arascouet@bloomberg.net

Read the full article →

King Crushing Pound as U.K. `Can’t Afford Stronger Currency’ as GDP Slips

August 16, 2009

By Anna Rascouet and Lukanyo Mnyanda

Read the full article →

Selling Switzerland Short Finds Favor as National Bank Breaks Franc Rally

July 19, 2009

By Oliver Biggadike and Anna Rascouet

Read the full article →