LONDON, Aug 29 (Reuters) – If Italy is ever going to
recapture its glory days, it needs an even weaker euro and,
given its weight in the euro zone, it might just get it.
Forex traders may logically react to the gravity of Italy’s
economic and fiscal plight by selling the euro.
LONDON, Aug 27 (Reuters) – Continuing and broad-based yen
weakness would sit comfortably with the objectives outlined by
Bank of Japan Governor Haruhiko Kuroda in his speech last week
at Jackson Hole, Wyoming.
For a text of Kuroda’s full remarks: here
The BOJ Governor said the mechanism for negotiating wage
increases “stopped working effectively” while Japan battled
deflation over the past two decades. He also said he wants to
“anchor inflation expectations at 2 percent” to act as a
benchmark for wage-setting.
LONDON, Aug 20 (Reuters) – French President Francois
Hollande said again on Wednesday that the euro is overvalued
and, looking at the state of the French economy, many might
agree with him.
France, the currency bloc’s second-biggest economy after
Germany, is afflicted by record-high jobless numbers, housing
starts at a 16-year low and waning industrial output.
LONDON, Aug 11 (Reuters) – European Central Bank head Mario
Draghi’s words last week and what Bank of England chief Mark
Carney is likely to leave unsaid on Wednesday may combine to
push the euro lower against sterling in the coming days.
“The fundamentals for a weaker exchange rate are today much
better than they were two or three months ago,” Draghi said on
Thursday, referring to the external value of the euro.
LONDON, July 23 (Reuters) – Sterling may have some room to
fall versus the Swiss franc if fear of tougher
sanctions sees Russian investors shift cash from Britain to
Russian investors, who have poured capital into Britain,
notably into its high-end real estate, will have noted British
Prime Minister David Cameron’s call for new sanctions on Russia
in the wake of last week’s downing of a Malaysian airliner over
LONDON, June 18 (Reuters) – The dollar should be the
ultimate beneficiary of the prolonged unrest in the Middle East
that has already seen the price of oil tick higher on fears of
Brent oil futures rose towards $114 a barrel on
Wednesday as heavy fighting in Iraq continued. Sunni militants
took control of most of Iraq’s second-largest oil refinery, an
official at the refinery said.
LONDON, March 26 (Reuters) – The Japanese yen could be
vulnerable to a renewed emphasis on economic policies by Prime
Minister Shinzo Abe’s government, whose constitutional and
foreign policy objectives have become somewhat bogged down.
The combination of fiscal and mooted structural reforms
allied with supportive monetary policy easing by the Bank of
Japan (BOJ), often collectively called Abenomics, have so far
been a signal success for the Abe government.
LONDON, March 24 (Reuters) – The dollar should be the
ultimate beneficiary of U.S. Federal Reserve chief Janet
Yellen’s disclosure on Wednesday that the Fed may only wait six
months to raise rates once its bond buying programme is over.
Taken in tandem with policy stances in the euro zone and
Japan, the euro and the yen might be the big losers.
LONDON, March 20 (Reuters)- Policymakers struggling to spark
inflation in Japan’s underperforming economy probably didn’t
have Crimea on their list of problems.
But some leading financial figures are raising the idea that
a prolonged crisis in the Ukrainian region annexed by Russia
might counter-intuitively result in a lower oil price that would
produce an unwelcome disinflationary impulse in Japan.
LONDON, March 14 (Reuters) – Euro zone exporters must be
hoping European Central Bank (ECB) President Mario Draghi is
right when he rejects comparisons between the currency bloc and
Japan’s experience of deflation.
Or, just as Japanese exporters discovered for long periods
in the 1990s, today’s euro zone exporters might suffer as a
strengthening local currency eats into their bottom line and
gives their global competitors an edge.