Posts Tagged ‘Tests’
The immediate reaction at the open of the currency markets yesterday was to sell US dollars in response to the S&P downgrade of US credit. This proved to be short-lived, however as this induced risk aversion which prompted teh flight to safety trade which, ironically, means buying US dollars.
In addition to this counter-intuitive logic, the [...]
The European Banking Authority (EBA) continues to court controversy with the way it is administering the recent round of bank “stress” tests. The testing process has been in progress since March and is designed to restore confidence in the European banking system awash in questionable sovereign debt.
As part of the evaluation, the banks have been [...]
Irish central bank governor Honohan says “It is a good idea, laying out the facts for the major banks. I think it will go some way to removing exaggerated concerns about some particular risks.”
Best the authorities get their collective bottoms in gear then.
They may not be the market-cleansing mechanism most hope for, he says in an essay in the FT. His conclusion:
European officials can do a lot to make the stress test credible; and they should. But, unfortunately, they cannot turn it into a catalyst for Europe’s return to financial normality. Regrettably, this is a [...]
EUR/USD firms bit more, presently at 1.2535.
Euro zone cannot allow a country to default
Here are further details on broader tress tests for EU banks. The ECB plan would prompt tests of 15 German banks, not three, as presently planned.
EUR/USD made a run for trendline resistance at 1.2361 but has stalled at 1.2358 so far. Cable topped out at 1.5017 and is easing again on profit-taking, now at 1.4995. [...]
By Fast Brokers – Gold is testing its psychological $1250/oz level as it breaks away from other foreseeable technical barriers. The precious metal continues to benefit from its win-win position, and this should be the case so long as investor uncertainty is so high. Austerity concerns are weighing on the EUR/USD and risk trade as [...]
By Fast Brokers – Gold has broken through previous April highs and is testing the patience of 3/17 highs and the psychological $1135/oz level. Strength in gold comes amid renewed weakness in the risk trade as the Euro and Pound take a beating. Fresh uncertainty in Greece is sending government bond yields higher and investors [...]
